Fact 26. Building Regulations - how might they affect your sale or purchase?

Building regulations affect sales by ensuring safety compliance; missing approvals can delay sales, reduce value, complicate mortgages, and risk legal disputes.

When buying or selling residential property in England, building regulations often play a crucial but sometimes overlooked role that can impact the transaction significantly. These regulations are designed to ensure that buildings meet safety, health, and energy efficiency standards. Understanding the implications of building regulations, compliance requirements, and the risks of non-compliance is essential for both buyers and sellers to navigate the conveyancing process smoothly.

What Are Building Regulations?

Building regulations are legal requirements that set the standards for the design and construction of buildings to protect the health and safety of people in and around those buildings. They cover various factors including fire safety, structural integrity, insulation, ventilation, and electrical installations. Most building work, from extensions and loft conversions to electrical rewiring and replacement windows, requires building regulations approval.

These regulations are managed locally by building control bodies, either through local councils or approved inspectors. When building work complies, a completion certificate is issued as proof that the work meets the required standards.

Why Building Regulations Matter in Conveyancing

In property transactions, building regulations affect both sellers and buyers because compliance (or lack thereof) influences the legal validity, safety, value, and insurability of the property:

Sellers must provide evidence of compliance for any work requiring approval, typically by producing building regulations completion certificates.

Buyers rely on this evidence to ensure they are purchasing a safe, lawfully modified property and to satisfy mortgage lenders.

Missing or incomplete certificates can cause concern, delays, mortgage refusals, renegotiations, or even cause a sale to fall through.

Consequences of Non-Compliance

Non-compliance with building regulations can lead to serious consequences, including:

Local authority enforcement action requiring costly remedial work or removal of unlawful alterations.

Legal penalties, including fines or court injunctions, at any time since enforcement actions can be taken up to ten years after the work was completed.

Difficulty obtaining mortgage finance, with lenders often requiring proof of compliance or indemnity insurance.

Possible invalidation of insurance policies relating to the property.

Liability passing onto new owners, even if they were unaware of the non-compliance at purchase.

Common Building Works Requiring Approval

Typical building works that usually require approval include:

Home extensions and loft conversions

Structural alterations such as removing load-bearing walls

Electrical installations and upgrades

Replacement of windows and external doors

Installation or alteration of heating systems

Garage and attic conversions

Bathroom modifications affecting drainage and ventilation

Checking Compliance During Purchase

Buyers should undertake thorough checks to confirm building regulations compliance:

Request building regulations completion certificates for any alterations or extensions.

Review local authority searches and the Building Control Applications Register.

Consult seller’s disclosures in the Property Information Form regarding building work and consents.

Commission a surveyor to inspect for potential issues or unapproved modifications.

Seek professional advice on any concerns or missing documentation.

Issues Sellers May Face

Sellers who cannot provide the necessary certificates may encounter challenges such as:

Buyers requesting price reductions or indemnity insurance to cover non-compliance risks.

Delays in the completion process as buyers or lenders seek proof of compliance.

The need to arrange retrospective building control approval or insurance policies.

Increased difficulty marketing the property due to perceived risks.

Solutions for Missing Building Regulations Approval

If building regulations certificates are missing, there are several options:

Apply for retrospective building control approval (regularisation) where the local authority inspects the work to confirm compliance. Non-compliant work must be rectified.

Secure indemnity insurance policies to protect buyers and lenders from enforcement action risk.

Negotiate price adjustments to reflect risks and potential remedial costs.

Disclose all relevant information transparently to avoid future legal claims.

The Building Safety Act 2022 and Changes

New legislation has extended enforcement periods:

Local authorities may now take enforcement action within ten years of unauthorised work, up from the previous one year.

This extension means risks around historic building regulation breaches are more significant and must be addressed in conveyancing.

Conveyancers must make thorough enquiries about building works irrespective of their age and advise clients accordingly.

Practical Advice for Buyers and Sellers

For buyers:

Always check for building regulations compliance certificates before exchange.

Do not assume older alterations are safe from enforcement.

Get professional surveys to identify hidden or unapproved works.

Be prepared to request indemnity insurance if certificates cannot be obtained.

For sellers:

Gather all documentation for building works before marketing the property.

Disclose any missing certificates or compliance issues honestly to avoid post-sale disputes.

Consider arranging retrospective approval or indemnity insurance proactively.

Cooperate with buyers’ solicitors and surveyors to minimize delays.