The Home Report and Energy Performance Certificates: What do house builders need to know?

From 1 December 2008, homes for sale in Scotland require a Home Report, consisting of a survey, questionnaire and energy report. New build homes will be exempt – but, for the energy report, only for five weeks.

What is the Home Report?

The Home Report consists of three documents: a survey, an energy report (or energy performance certificate) and a questionnaire.

The survey is an assessment of the home's value and condition by a surveyor; the energy performance certificate measures energy efficiency; while the questionnaire provides further information, such as Council Tax banding.

Why are we asking this now?

From 1 December 2008 properties marketed for sale in Scotland need a Home Report.

For house builders:

A. This obligation will not apply to the sale of new build properties; BUT

B. It will apply to any re-sale of part-exchange properties.

Why does the exemption for an energy performance certificate only last five weeks?

From 4 January 2009, a separate legal duty to provide prospective buyers with an energy performance certificate comes into force.

For house builders:

A. This duty applies to the sale of new build properties; AND

B. It will apply to any re-sale of part-exchange properties (if not already covered by a Home Report).

Do energy performance certificates just apply to the sale of homes?

No - the duty to produce a certificate also affects homes under construction.

In order to obtain a completion certificate a house builder must submit an energy performance certificate to the local authority if the original building warrant for the home was submitted to the local authority on or after 1 May 2007.

What are the relevant time scales for housebuilders?

The attached pdf summarises the relevant timescales for house builders in connection with new build homes, part exchange homes and homes under construction.

What are the next steps?

House builders should ensure their sales teams or agents comply with these duties from 1 December 2008 and 4 January 2009 onwards.

John Curran, Head of Housebuilding (UK), comments:

"Just as December's excess leads to January's thrift house builders, their sales teams and agents need to ensure that house builders do not receive any unexpected bills in 2009 – if the house builder does not produce a Home Report or energy performance certificate on time they could incur a £5,000 fine for every missing certificate."

John Curran
Partner, Aberdeen
Tel +44 (0)1224 408 551
Email john.curran@mcgrigors.com