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2007 News Archive

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UK Property News

13 December 2007

Hips could be improved by mandatory Home Condition Reports

Making Home Condition Reports a mandatory requirement of Home Information Packs (Hips) would be a significant improvement to the controversial documents, it has been claimed.

According to Hip company Hip Hip Hooray, making the condition report a required element would also improve other aspects of the pack, such as the Energy Performance Certificate (EPC).

Lesley Sorridimi, from the firm, revealed that such changes would make the packs much better for consumers.

She said: "Consumers will only see a really tremendous difference when the Home Condition Report is made a mandatory part of the Hip."

"The Hip is only a third of the document that it could be since the Home Condition Report has been left out of it."

"Most consumers will look at a search and the title deeds and not understand them, but when it comes to looking at the condition of a property, that is what consumers understand. This is a consumer's concern," she added.

Mortgage Solutions

12 December 2007

AHIPP calls for exchange ready HIPs

Home information packs (HIPs) need to be made ‘exchange ready’ before they can reach their full potential, according to the Association of Home Information Pack Providers (AHIPP).

The trade body said it wanted to work with all the other industries involved in home buying and selling to develop and improve the packs to fully incorporate them into the purchase process. It also called for home condition reports to be restored as a mandatory feature of the pack.

Mike Ockenden, director general of AHIPP, said: "By bringing this information back into the pack and certain documents that are required to complete the legal process, HIPs can be made exchange ready. This means that a buyer who has an offer accepted can pass the pack to his or her lawyer who can rely on the contents and move quickly to exchange of contracts."

Full roll out of HIPs - Ministerial Statement
by Yvette Cooper

22 November 2007

All homes marketed for sale from 14 December 2007 in England and Wales will need a Home Information Pack (HIP).

The Government set out its approach and criteria for phasing the implementation of Home Information Packs (HIPs) including Energy Performance Certificates on 11 June. Sixty per cent of the market is now covered by HIPs. And the criteria for roll out to the rest of the market have now been met. We will therefore complete the phased roll out by extending coverage to the rest of the market from 14th December.

First time buyers of one and two bedroom homes will be the main beneficiaries as they will now get important information about their new home for free. Information such as searches for which they would previously have had to pay will now be included in the HIP paid for by the seller, reducing the costs of the first step onto the property ladder.

But all householders will benefit from having detailed information about the energy efficiency of their home, and measures to save on their fuel bills and cut carbon emissions

200,000 Energy Performance Certificates have been generated since the summer. The analysis of the early phase of rollout of HIPs found that the average rating for homes was an E, and we know that approximately one-fifth of all homes are likely to get an F or G rating. This means that basic measures could significantly cut both fuel bills and carbon emissions. The Energy Savings Trust have also estimated that homeowners could also save around £300 a year on fuel bills from implementing the recommendations in the Energy Performance Certificate.

We will establish a new Green Homes Service to offer those buying or selling a home with an F or G rating free or discounted help with energy efficiency measures, by linking them up with grants and loans provided by energy companies and others. Home buyers could potentially be eligible for hundreds of pounds to get help with insulation or other improvements.

As set out in the criteria of 11 June there are now sufficient energy assessors and home inspectors fully qualified and accredited to provide Energy Performance Certificates for all homes bought and sold. 5794 people are now accredited.

In addition, the government has also conducted monitoring and analysis of the implementation programme to ensure continued smooth roll out. Early monitoring shows:

  • HIPs are taking on average 7 to 10 days to prepare.
  • The majority of property, and drainage and water searches, are being delivered within 5 days
  • Energy Performance Certificates (EPCs) are being prepared on average within 2 to 4 days
  • On average, a HIP costs between £300 and £350. Most of these are not new costs, as they cover the cost of searches and other documents which have simply been transferred from buyer to seller at the beginning of the process. The Energy Performance Certificate (EPC) is of course new but provides consumers with valuable information of the costs of running their home.
  • Competition from HIPs is reducing the costs of average property searches. 85 local authorities have already reduced their charges by £30 on average.

The government has also commissioned and considered extensive analysis by Europe Economics on the impact of HIPs on the market. We are today publishing their independent report which includes modelling on the impact as well as analysis of the first few months of implementation. It finds no evidence of any impact on transactions or prices, although there is a predicted short term impact on new listings as sellers change the timings of their listings. It concludes that the impact on listings is short lived, and the impact on the market is marginal compared to the wider factors.

We also asked Europe Economics and Dr Peter Williams who is a member of the National Housing and Planning Advice Unit to consider whether changing housing market conditions meant we should change the approach to completing the roll out. Their conclusion was that there are strong arguments for rolling out as planned, and that further delay could cause greater difficulties and uncertainties in the market.

In the light of this evidence therefore we will tomorrow lay the commencement order to extend HIPs and EPCs to one and two bedroom properties from 14 December. In order to ensure continued smooth implementation, we are also extending the temporary provisions on first day marketing for all properties from 1 January to 1 June, providing flexibility for sellers as part of the roll out to one and two bedroom properties.

The implementation of Home Information Packs so far, and the work of the Stakeholder Panel, has also highlighted further improvements that are needed to benefit consumers.

HIPs have already led to improvements in the delivery and cost of searches, with significant reductions in the cost of searches, and in some areas, substantial reductions in the delays in producing searches. However, there are still wide variations in costs and services and we want to see further improvements for consumers. We will therefore publish guidance on access and charging in December for local authorities and personal searchers with the aim of speeding up searches and delivering a fairer deal for consumers.

We have asked Ted Beardsall, Deputy Chief Executive of the Land Registry - and member of our Home Buying and Selling Stakeholder Panel - to advise on what else could be done to improve the search process, ensuring better quality and timeliness of information, and improving value for money for consumers.

Stakeholders have also raised concerns about the costs and timeliness of leasehold information, and the impact that this will have on Home Information Packs when one and two bedroom properties are included given the higher number of leasehold properties. In the majority of cases we would expect leasehold documents to be readily available and easily provided as part of Home Information Packs. However we are aware that some leaseholders, whether in the pre-existing system or creating a HIP, can find the relevant documents difficult to obtain quickly. We know that some also face disproportionate charges to access their documents.

As leasehold information is an important part of the home buying and selling process, and is already generally paid for and provided by the seller, we continue to believe there are considerable advantages to consumers from having leasehold information early on in the Home Information Pack. However, to ensure continued smooth roll out we will phase the introduction of leasehold information in response to stakeholder concerns. We will temporarily amend the HIP regulations so that the lease document itself must be included, but other leasehold information will be introduced as a requirement in six months time. This will allow HIPs for one and two bedroom properties to bed down in advance of leasehold information being required. In the interim, we have also asked Ted Beardsall to advise us and the Home Buying Stakeholder panel on what more can be done to improve the timeliness and cost of leasehold information, alongside the work on searches.

From April 2008, we will begin to roll out EPCs for newly built homes, as well as across commercial property for sale, rent or construction. By October 2008 all public buildings will have a display certificate.

All these measures are designed to promote the interests of the consumer. We will continue to actively monitor the rollout of HIPs and energy performance certificates and the home buying and selling process to ensure we can respond where further improvements are needed. The introduction of HIPs is part of a wider programme of reforms to home buying and selling including e-conveyancing and better redress, which aims to provide consumers with a clearer, more transparent and effective service, with better value for money, benefiting all potential homebuyers and helping in tackling climate change.

999 TODAY - Property Real Estate

15 November 2007

Home Information Packs continue to win supporters

In a time of uncertainty for the housing market, The Association of Home Information Pack Providers (AHIPP) has now reached 100 members.

Despite Government delays, this demonstrates that the new industry is committed to the implementation of Home Information Packs (HIPs).

STL Group Plc, a leading provider of personal searches in England and Wales as well as Home Condition Reports and Energy Performance Certificates, is the latest member to join AHIPP, and believes that now is the right time to be pushing forward the campaign to promote the benefits of HIPs to consumers.

Along with Energy Performance Certificates (EPCs), HIPs aim to provide home owners with information to cut carbon emissions and reduce fuel bills.

According to a statement issued by the CLG (Communities and Local Government), the top five recommendations given by assessors for improving energy efficiency include: cavity wall insulation, changing to low energy lighting, putting thermostatic valves on radiators, loft insulation, and double glazing.

Currently only properties with three or more bedrooms are required to provide HIPs, although should it be proved that the strategy is a success, it is expected that smaller houses will also join that list.

When plans for HIPs first introduced, there was a large amount of controversy surrounding the idea. For consumers wishing to purchase or sell their property, the news came as a further complication to what is already, for some, an elaborately time consuming and stressful process. Only time will tell if the addition of HIPs to the property transaction process will make a significant difference.

However, this further addition to AHIPP. the trade body representing a wide constituency of members in conveyancing, estate agency, search providers and HIP providers, surely cements the idea that, like it or not, the implementation of HIPs will become a certainty in the future.

Paul Broadhead, Deputy Director General of AHIPP, commented: "We are thrilled to represent 100 members from all parts of the home buying and selling process. Despite Government delays in the rollout of one and two bedroom properties, pack providers continue to deliver packs in an efficient and professional manner to consumers."

Recent warnings on HIPs by The Royal Institution of Chartered Surveyors (RICS) show that not all industry figures are necessarily in favour of the idea. However, in response to RICS, AHIPP stated:

"The latest HIP allegations from RICS appear to have disregarded the many benefits that the packs will offer first time buyers - the most vulnerable of buying groups. With more information upfront and the costs incurred in gathering and providing information such as searches transferred to the seller, first time buyers will find their first step onto the housing ladder a more affordable and more informed one."

AHIPP

26 September 2007

AHIPP URGES GOVERNMENT TO COMPLETE ROLL OUT OF HIPS FOR REMAINING HOUSING STOCK

Since Home Information Packs (HIPs) were implemented for all properties in England and Wales with three bedrooms or more two weeks' ago, HIPs have been delivered to consumers efficiently and professionally by the new HIP provider industry. Now the Association of Home Information Pack Providers (AHIPP) urges the Housing Minister, Yvette Cooper, to lay down the commencement order to extend the rollout to all remaining properties.

Mike Ockenden, Director General of AHIPP, said: "I call upon the Government to extend the rollout to the remainder of the housing stock. There are now over 5,000 fully accredited Domestic Energy Assessors (DEAs) ready to provide Energy Performance Certificates (EPCs), a substantially higher number than the Government's target of 3,000 for the full national roll out of HIPs."

"For HIPs to do their job properly they need to be rolled out to all properties up and down chains of transactions. Not only will this speed up home buying and selling for all consumers, but it is fair for all. Presently anyone selling a home with three or more bedrooms and buying a one or two bedroom home is penalised by having to pay for the information in a HIP on the sale and also on the purchase. Clearly this situation should be rectified as soon as possible."

"Further, HIPs are particularly beneficial to first time buyers, saving them money on their first purchase, making it less stressful and removing one of the barriers to home ownership. People entering the property ladder for the first time are more likely to buy a one or two bedroom home so it is important to roll out HIPs to these properties as soon as possible."

"We have seen that the roll out of HIPs to three and four bedroom homes has gone very well and I now strongly urge Government to extend the implementation to all homes put on the market, so that HIPs can really start to do the job they have been brought in to do. It is time for all home buyers and sellers to benefit from this vital reform."

- Ends -

For further information please contact:
Neil Mackwood / Karen Richards, The Wriglesworth Consultancy
020 7845 7900 / n.mackwood@wriglesworth.com / k.richards@wriglesworth.com

For all HIPs related enquires contact:

Mike Ockenden, Director General, AHIPP on 0777 555 0155
Paul Broadhead, Deputy Director General, AHIPP on 0797 994 2187

Notes to Editors:

The Association of Home Information Pack Providers (AHIPP) is a trade body representing a wide constituency of members in conveyancing, estate agency, search providers and HIP Providers. The Association has over 90 members. See www.hipassociation.co.uk for more information.

Daily Express
by Sarah O'Grady

26 September 2007

FINE IF YOU SELL WITHOUT HIPS

TOWN halls have been ordered to hit house sellers with £200 fines if they fail to use Home Information Packs.

It means local councils could now rake in fortunes from home owners who disregard the rules.

The fines have been given the go-ahead by Housing Minister Yvette Cooper, empowering trading standards officers to impose the cash penalties.

They can hit anyone who markets a home with three or four bedrooms without a Home Information Pack.

Last night there was widespread condemnation of the move which is seen as providing a potential cash bonanza for local councils. If only one in five of the two million homes sold each year fall foul of the rules, town halls would make £80million.

Grant Shapps, Shadow Housing Minister, said HIPs evasion would be deemed an extra source of revenue like parking fines and speed camera penalties.

He said: "It is the height of recklessness for Labour to impose even higher costs on home owners by forcing HIPs onto them, then pressuring councils into levying £200 fines."

"This flawed scheme was always about giving the Government more money."

"All the VAT on the packs goes to the Treasury and if councils are raising millions from fines, the Government will soon find a way to cut their central grant."

"Are trading standards officers going to start knocking on doors if there's a For Sale board outside?"

"Ministers are playing Russian roulette with the housing market by making such a reckless intervention."

Bernard Clarke, of the Council of Mortgage Lenders, said: "This move places an extra burden on home owners.

"We are hoping that councils will be consistent. It will not be fair if sellers in one area are treated differently from those in another."

The £700 HIPs have been controversial from the start.

They were supposed to make it easier to buy and sell a home because the seller prepares much of the information for the buyer.

Ministers hoped that by having surveys and searches prepared in advance, the number of failed purchases would drop and sales could be completed more quickly.

But it has been criticised by the property industry and ministers have been forced into embarrassing climbdowns. A local government spokesman said last night: "People are complying with HIPs' rules - high compliance means a low level of fines."

Trading Standards Institute chief executive Ron Gainsford said: "Our business is about compliance not prosecution. Our officers will operate with a light touch."

Building.co.uk

19 September 2007

Hips to apply to all homes from next month

Government to press ahead with plan to extend scheme despite drop in sales of four-bed houses

The government is expected to extend its controversial home information packs (Hips) to the entire housing market by the middle of next month.

Building has learned that officials at the communities department have been sounding out providers of the packs on when the initiative can be rolled out to the entire market.

The providers claim they will be ready to compile Hips for every home by the middle of October.

Mike Ockenden, director-general of the Association of Home Information Pack Providers, said there were now 4,000 trained domestic energy assessors to prepare energy performance certificates.

Hips came into force for three-bed homes at the start of this week. But the pack's opponents claim the government has not assessed their potential impact.

The RICS published figures this week showing that the number of four-bedroom homes that came on to the market in August, when the packs were introduced, fell by half compared to July.

The National Association of Estate Agents also reported a 63% drop in the number of four-bed properties on their books.

John Slaughter, external affairs director at the Home Builders Federation, said Hips could contribute to a wider downturn.

But Ockenden said: "The shortfall could be explained by an awful lot of other factors, like the fact that the people who live in four-bedroom properties tend to go on holiday in August."

Communities and Local Government (National)

10/09/2007

(CLG) Green findings - Energy Performance Certificates and Home Information Packs

Average four bedroom homes are getting an 'E' energy rating, according to a survey from the introduction of Energy Performance Certificates (EPCs) and Home Information Packs (HIPs).

New information six weeks after the launch of EPCs and HIPs, shows that average four bedroom homes and above could save hundreds of pounds off heating, lighting, and water bills.

Most homes are receiving an 'E' rating in their EPCs on the A-G scale, but this could potentially rise to a 'C' if consumers undertake measures recommended in the certificates, such as loft and cavity wall insulation.

The Government is today extending EPCs and HIPs to three bedroom homes so more buyers will get the same information to cut carbon emissions and reduce fuel bills.

The early findings come from a snapshot survey of energy assessors and EPCs provided since the launch of HIPs, which show average 4 bedroom homes are being rated 'E' and could typically save £180 on heating, £60 on lighting and £30 on hot water bills, a year.

The top 5 recommendations given by assessors for improving energy efficiency have been: cavity wall insulation, changing to low energy lighting, putting thermostatic valves on radiators, loft insulation, and double glazing.

The introduction HIPs is already starting to reduce costs and improve transparency in the housing market. More than 85 local authorities have reduced their search costs, in some cases by more than £100.

The average pack is taking around 5 days to compile, with major estate agents charging in the region of £300 plus VAT for a HIP, on an upfront or deferred basis - £200 to £250 of which is already paid under the current system.

Communities Minister Iain Wright said:

"Families buying four bedroom homes are getting clear information which shows how they can save hundreds of pounds on their fuel bills and cut carbon emissions too. It is important that this should be available for people buying three bedroom homes as well."

Typical 'green grants' of £100 to £300 for energy saving improvements like loft insulation are available to many home owners from energy suppliers as part of their legal obligations introduced by government to improve energy efficiency. Consumers can now access details of green grants and offers by tapping in their postcode on the Energy Saving Trust's website.

Energy suppliers are also providing direct information about grants to home buyers when they sign up to an energy contract.

Notes to Editors

1. EPCs and HIPs were introduced for four bedroom homes and above on August 1, and are today being rolled out to three bedroom homes. A further announcement on rolling out the packs to the rest of the market will be made in due course. Our key criteria will be ensuring a smooth implementation and that the necessary energy assessors, both nationally and regionally, are in place.

Public Enquiries: 020 7944 4400; Email:

News Releases: http://www.communities.gov.uk

BBC News website

28 August 2007

Barclays and HSBC happy with HIPs.

Two big mortgage lenders, HSBC and Barclays, have denied that they are unhappy with the recently introduced Home Information Packs (HIPs).

The packs require sellers to provide information such as planning permission and copies of title deeds to buyers.

The Daily Mail had claimed that the banks would ask buyers to carry out extra searches as they did not trust the information in the HIPs. However, the lenders said they just wanted them vetted by a solicitor.

No worries?

The government denied there was any problem with the reliability of personal searches of local authority information, as opposed to information supplied directly by the council in response to a solicitor's request.

"The HIPs legislation brought in a stringent code of practice for personal search companies," said a spokesman for the Communities and Local Government department (DCLG).

"They now have to have insurance cover for the searches they provide."

A spokesman for HIP providers said the lenders had nothing to worry about.

"They have no need to be concerned at all," said Paul Broadhead of the Association of Home Information Pack Providers (AHIPP).

"50% of all local authority searches are already done by personal search organisations."

He added: "They get exactly the same information as a solicitor would and mortgage lenders accept them already."

A spokesman for the Council of Mortgage Lenders (CML) added: "Lenders have agreed that as long as the property search organisation is a member of the Council of Property Search Organisations then the lenders will accept that search."

Supportive

A spokesman for HSBC said there was nothing new about his bank's policy and stressed that the bank was supportive of the introduction of HIPs.

"But we have never accepted private searches rather than those from a solicitor," he said. "We just need to be sure that the customer's solicitor will sign off the search so that it is covered by their personal indemnity insurance," he added.

A spokeswoman for Barclays agreed.

"We will accept a personal search, at the conveyancer's risk.

"We are not demanding that house buyers spend more money on more searches," she said.

Barclays currently has 5% of the new mortgage market while HSBC has 4%.

Law society

Despite these assurances, the Law Society renewed its warnings about HIPs that contain personal searches of council information.

It said solicitors, when acting for home buyers, should always point out to their clients that official searches provided a higher level of protection than personal searches, if any of the information in them turned out to be wrong.

"If you are buying a house for half-a-million pounds and you are mortgaging yourself to the hilt for the next 25 years, you can either have a search carried out by the council staff, on which you can rely, or one provided by someone you don't know - the search company," said Paul Marsh, vice-president of the Law Society.

"There is a degree of risk between the two but the buyer's solicitor has a search thrust on them now," he added.

The Law Society said it would like lenders to specify exactly which personal search companies they would be happy with, to remove a lawyer's current responsibility to vouch for a search company's work.

Conveyancing

The local authority search has been a compulsory feature of the conveyancing process since 1925.

It involves a buyer, or their solicitor or other representative, asking a set of standard questions about a property, covering local authority plans for the street or area, and any planning permission granted for the building.

This should also show up any restrictions on the way the property can be used, for instance the existence of smoke control orders, conservation areas, tree preservation orders, and any financial charges where the council could recover money owed to it.

Additional information can also be gleaned at the same time about neighbouring properties.

The aim is to make sure that the buyer does not get a nasty surprise once they have bought the house or flat.

Communities and Local Government News Release 2007/0159

17 August 2007

Next stage for Home Information Packs and Energy Performance Certificates announced

The Government has today announced that Home Information Packs (HIPs) and Energy Performance Certificates (EPCs) will be rolled out to three bedroom properties from 10 September 2007.

HIPs and EPCs are being introduced on a phased basis to ensure a smooth transition in the housing market, and to begin the process of transforming the home buying and selling process in the interests of consumers and the environment at the earliest opportunity.

Following the introduction of the packs for homes with four bedrooms and above on 1 August 2007, the Government has today confirmed there will be enough energy assessors, nationally and regionally, to roll out to three bedroom homes next month, having taken into account the operation of HIPs in the market.

HIPs and EPCs will give house buyers energy ratings for homes for the first time, from A to G - similar to consumer friendly ratings for fridges, helping to lower fuel bills and reduce carbon emissions. The packs will also help to cut costs for consumers by increasing transparency and competition in the home buying and selling process.

A further announcement on rolling out HIPs and EPCs to other properties will be made in due course. Our key criteria will be ensuring a smooth implementation and that the necessary energy assessors, both nationally and regionally, are in place.

Communities Minister Baroness Andrews said:
"We are now ready to start rolling out HIPs and EPCs to the next part of the market as promised, and improve a home buying and selling process which currently is not working for consumers or the environment."

"HIPs and EPCs can help families to save hundreds of pounds off their fuel bills, and cut a million tonnes of carbon a year. They also have the potential to reduce the millions of pounds wasted by consumers when buying and selling a home, by increasing transparency and competition in a process that hasn't changed for a generation."

Measures recommended in the EPC could save the average consumer £300 a year off their fuel bills, according to the Energy Saving Trust. Typical 'green grants' of £100 to £300 for energy saving improvements like loft insulation are available for many home owners.

A new system to make it easier for home owners to access these grants from energy suppliers was launched earlier this month. Energy suppliers are providing immediate access and information about green grants and offers to home buyers when they sign up to an energy contract. A new portal on the Energy Saving Trust's website also allows consumers to tap in their postcode to find out offers available.

A snapshot of leading HIP providers shows packs are taking five days on average to produce. Many major estate agent chains are offering HIPs as part of their ordinary fees. Others are charging in the region of £300 to £350 plus VAT on an upfront or deferred basis - £200 to £250 of which is already paid for in the current system.

MForm a mortgage choice company

6 August 2007

CALL FOR HIPS TO INCLUDE £200 DOCUMENT

Calls are growing for home condition reports (HCR) to be made a mandatory part of Home information packs (Hips)

The Association of Home Information Pack Providers (Ahipp) believes that by making the HCR optional, it is unlikely that many people will choose to get one.

"Our lobby to government is first of all home condition reports are voluntary in the packs and they intend to push that. I don't see a lot of people taking them up voluntarily I have to say, and we do believe they are going to have to be made mandatory again in due course," Mike Ockenden, director general of Ahipp told BBC Radio Five Live's 'Wake Up to Money' programme.

"So [while] at the present time we only have the energy performance certificate in the pack; we want to see the home condition report back.

"That will reduce the chances of transactions falling through and reduce that period of uncertainty," he added.

A spokesperson for Ahipp recently said that home sellers would be unhappy at having to include a HCR in their packs as it would set them back around £200.

Hips were launched for properties with four or more bedrooms on August 1st with The Hip Exchange reporting that the average Hip is costing slightly more than the government had first predicted.

Written Statement from Government

20 July 2007

Housing: Home Information Packs

The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Andrews): Following the motion to revoke the Home Information Pack (No. 2) Regulations 2007, the Government are placing their response on record.

A number of debates have taken place over the past year about home information packs (HIPs). The Merits Committee of the House has reported twice on HIPs regulations. Throughout the parliamentary process, the Government have listened carefully to the arguments put forward and have adapted our plans for the introduction of HIPs in response to many of the comments made. We have also engaged in long and constructive dialogue with key stakeholders from the industry.

In response to the arguments put forward by Baroness Hanham, Baroness Scott, and Earl Caithness, the Government have made it clear that we remain committed to HIPs, linked with energy performance certificates (EPCs), as a first step in reforming and improving the home-buying process, which is currently wasteful, stressful and opaque. We believe that the process needs to be more transparent and predictable, particularly for first-time buyers and that all consumers need to be able to rely on having key information before they commit to home purchase rather than later in the process. These arguments were supported in debate by Lord Elystan-Morgan, Lord Graham of Edmonton and Lord Redesdale, who also drew attention to the importance of energy performance certificates.

We also believe that the urgency of climate change and the need for consumers to have more information about reducing energy use and energy bills means that introducing EPCs as part of the HIP will achieve this swiftly and reliably.

In recent months and since the regulations were withdrawn on 22 May, everything has been done to ensure a smooth introduction of HIPs and EPCs on 1 August. Our implementation plans, announced on 11 June, have been followed through. There are enough inspectors; the infrastructure is ready; the industry is prepared; and consumers are anticipating the change. There is no reason to delay any further. We will therefore introduce HIPs for the sale of homes with four or more bedrooms on 1 August, and we will roll them out for the remainder of the market as announced. We are confident that they will act as a catalyst for reform of the wider home buying and selling process and make a considerable contribution to cutting carbon emissions. We will, of course, continue to work with stakeholders to make further progress on those agendas.

What Mortgage website

18 July 2007

AHIPP push for HIP extension

The clock is ticking once again as we near the 1 August launch of Home Information Packs, and the AHIPP is now pushing for their expansion to include three-bedroomed homes come September.

According to the Association of Home Information Pack Providers (AHIPP), only one more fully trained energy assessor is needed in order for the Government to meet its target of having 2,000 accredited assessors ready to go out to work on the date the packs are launched.

Currently the UK boasts 1,321 fully accredited Domestic Energy Assessors (DEAs) and 678 fully registered Home Inspectors who can legally produce the Energy Performance Certificated (EPCs) which comprise a compulsory part of each Home Information Pack.

Now this hurdle has almost been reached, the AHIPP are urging Housing Minister Yvette Cooper to lay down the commencement order which will extend mandatory HIPs to three bedroomed homes as well.

"I would urge the Minister to lay down the commencement order next week to allow HIPs for three bedroom properties to go live on 1 September - exactly one month after HIPs will be mandatory for homes with four bedrooms or more. At the present rate of progress the remainder of the housing stock should follow soon after."

AHIPP website

28 June 2007

BROWN SIGNIFIES CONTINUITY FOR HIPS

The announcement today that Yvette Cooper, Minister for Housing and Planning will continue with her role, but taking on a much higher profile and attending cabinet meetings when required, has been heralded as great news for the future of Home Information Packs (HIPs), by the industry.

The Association of Home Information Pack Providers (AHIPP) and its members have declared their delight in Brown's latest decision, which will see Ms Cooper continue to preside over the introduction of HIPs, ensuring the future success of this vital reform.

Mike Ockenden, Director General, AHIPP said: "The Prime Minister's decision, which will see Yvette Cooper remain in-charge of housing and as a result, the implementation of HIPs should be warmly welcomed by consumers, the environment and the industry. The continuity of keeping Ms Cooper in this role sends out a positive message for the future of HIPs and it is only right that Gordon Brown has seen fit to elevate her role as Housing Minister and with it, the prominence of future housing and planning issues on the Government's agenda."

"Homebuyers and sellers across England and Wales should take this as a signal of reassurance that the benefits of HIPs will soon be delivered, commencing on 1st August with their introduction for properties with four bedrooms or more, closely followed by the phased implementation for all, smaller dwellings."

"Today is a very positive day for the HIPs industry and we now look forward to working alongside all of the relevant industry members to ensure the smooth implementation of HIPs across England and Wales, for the benefit of long suffering consumer."

AHIPP website

26 June 2007

ENERGY ASSESSORS COMMIT TO MAKING HIPS LIVE

According to new figures released today by Communities and Local Government (CLG), there are currently 1,340 accredited energy assessors now ready to conduct Energy Performance Certificates.

Energy Performance Certificates (EPCs), conducted by a fully trained and accredited energy assessor, will form a vital part of the Home Information Pack (HIP), which will go live on 1st August for properties with four bedrooms or more.

Paul Broadhead, Deputy Director General, Association of Home Information Pack Providers (AHIPP) said: "According to our own research, in addition to the 1,340 accredited assessors, there are a further 1,200 assessors who have applied for accreditation and will be fully accredited by the end of July. With this in mind, Government will easily meet the 2,000 target that it suggests is needed to provide HIPs for homes with three bedrooms or more."

"As a result, I see no reason why, in line with its implementation plan, Government could not introduce mandatory HIPs for three bedroom properties from September, with the rest of the housing stock soon to follow, perhaps as soon as October."

With 1,340 energy assessors now accredited and a further 1,200 awaiting accreditation, those previously concerned about a lack of available assessors should be very encouraged by the latest figures.

Broadhead concluded: "Despite Government's decision in May to delay the introduction of packs, it is encouraging to see that the industry has remained committed to their successful implementation."

"I am confident that those assessors who have continued their training will have a positive future ahead of them and I expect to see the re-introduction of mandatory HIPs for all homes put on the market well before the end of this year."

UK PROPERTY NEWS WEBSITE

12 June 2007

CLG subsidises 5,000 Hips

The government is to subsidise 5,000 home information packs (HIPS) by around £100 in the run up to their revised launch date on August 1st it has been announced.

The Communities and Local Government (CLG) department has revealed it will put £100 plus VAT towards energy performance certificates (EPCs) for Hips commissioned before the August deadline.

It is believed this move is to act as an incentive to UK Property owners with houses with four bedrooms or more, who will be legally required to have a Hip after this date.

The news comes as local government minister Ruth Kelly revealed a shortage of up to 2,000 accredited inspectors able to carry out the required energy efficiency tests.

The CLG has played down this shortage of inspectors however saying: "We expect to need 2,000 accredited assessors and inspectors to introduce EPCs and Hips to three-bedroom homes, with a total of 3,000 needed to cover the whole market. We believe these are prudent figures that will ensure the smoothest possible implementation."

Yvette Cooper, housing minister has also defended the validity of the scheme: "EPCs are projected to save nearly a million tonnes of carbon per year by 2020, and help families to cut hundreds of pounds from their fuel bills.

"Homebuyers will for the first time get energy ratings on homes - similar to consumer friendly fridge ratings - as well as cost-effective measures that will help reduce the 27 per cent of emissions that come from homes," she added.

According to the CLG there are currently 1,000 accredited energy assessors and around 4,700 who have passed training exams.

QCK.com

12 June 2007

Kelly aims to clarify changes to home buying process

Communities minister Ruth Kelly has offered some clarification of how the home buying process in the UK is set to change over the coming months, following the recent delay of the introduction of home information packs (Hips).

Ms Kelly has now outlined the revised plans, which will see Hips, along with energy performance certificates (EPCs), phased in from August 1st onward, initially for homes with four bedrooms.

Explaining the decision the minister indicated that there are now enough accredited energy and home inspectors across the country to introduce the plans relating to four-bedroom properties, but not, as yet, for any other size of home.

"Hips and EPCs will provide an opportunity to make real progress on transforming the home buying and selling process in the interests of consumers and the environment," she said.

"The approach outlined today will phase in the introduction of Hips and EPCs while making early carbon savings from homes."

Meanwhile, housing minister Yvette Cooper recently viewed what has been described as the UK's first zero-carbon home at the BRE Offsite 2007 exhibition in Watford.

THE MIRROR

12 June 2007

HOUSING PACKS ON WAY BACK

THE troubled Home Information Pack scheme will be introduced as planned, the Government announced yesterday.

The scheme, which requires owners to compile a set of documents about their home before they put it on the market, was delayed last month - sparking rumours it had been shelved indefinitely.

But yesterday it was confirmed the packs will be introduced on August 1 for houses with four or more bedrooms.

Communities Secretary Ruth Kelly promised three bedroom properties would follow soon afterwards.

Ms Kelly was forced to postpone the scheme just days before its planned June 1 introduction date.

Critics including opposition parties and estate agents said the plans were badly thought through.

The Royal Institution of Chartered Surveyors launched a legal challenge - and the government admitted not enough inspectors had been trained to carry out the environmental audit that is a vital part of the packs.

Search by Headlines website

31 May 2007

Majority Of Public Say Yes To HIPS

Despite the announcement by the Government to delay the introduction of Home Information Packs (HIPs) until 1st August 2007, when they will become compulsory for all houses with four or more bedrooms in the UK, new research from Hyder Consulting reveals that the majority of UK adults are in favour of the introduction of HIPs, with 51% claiming that a property's energy efficiency rating is a key consideration when purchasing a new home.

Support for HIPS appears strong across the entire country with people in the East Midlands most in favour of their introduction with 60% stating that a property's energy efficiency rating is important to them, whilst those in Scotland are the least supportive with just under a half (45%) believing the same.

The findings of the research show that more and more Britons are becoming environmentally aware and are attempting to embrace the idea of 'green living' with only 14% saying that they would not take the energy efficiency rating into consideration when looking at a house or flat.

Indeed, over three quarters of UK adults (78%) say that running costs and energy efficiency are important when choosing one property over another, with just 3% saying that it is not important at all.

Chris Evans, Head of Environmental Solutions at Hyder Consulting commented: "The research shows that the choice to make our homes more energy efficient will no longer be made on ethical grounds alone, but financial as well. Clearly, property buyers are increasingly taking a property's carbon footprint into account. The level of energy efficiency within a property may be used as a bargaining tool by both parties in negotiations.

"Once they have been fully introduced HIPs may prove to be a key turning point in the push to make homes more sustainable. However we must be aware that a sustainable home and lifestyle does not stop with HIPs. It is important that we all continue to do everything we can from minimising our carbon footprint to recycling in order to help save our planet."

Government Home Information Pack website

22 May 2007

HIPs implementation date delayed to August 1st.

The Government will revise regulations and implement the following changes

HIPs and EPCs to start on August 1, implemented on a phased basis. From August 1 packs - including EPCs - will be required for the sale of 4 bedroom properties and larger. These are the properties which are the most energy efficient. Packs will be phased in for smaller properties as sufficient energy assessors become available for work.

Until the end of 2007, the property may be marketed as soon as the pack has been commissioned, rather than making people wait until the pack has been received.

As a temporary measure EPCs are allowed to be up to 12 months old when the property is put up for sale.

Councils and social landlords will be invited to work with CLG to introduce EPCs on a voluntary basis in social housing, for example at the time of stock transfers.

Mps Vote

16 May 2007

MPs vote again for HIPs in June

Mike Ockenden Director General, Association of Home Information Pack Providers (AHIPP), commented on today's vote in the Commons:

"Yet again, Government has demonstrated its commitment to reducing the carbon emissions of our housing stock and to improving the house buying and selling process for consumers across England and Wales, through the implementation of Home Information Packs (HIPs)."

"Industry is ready to deliver HIPs and the benefits that the packs will offer to both consumers and the environment. There will be enough energy assessors - our latest survey has identified that over 3,500 home inspectors and Domestic Energy Assessors (DEAs) will be ready to produce Energy Performance Certificates (EPS) as of June this year."

"AHIPP and its members will continue to work towards the smooth implementation of the packs for the benefit of the consumer, the industry and the environment."

The Government won the vote by 306 votes to 234, a bigger majority than it currently holds in the House of Commons.

World at One

15 May 2007

Brown backs Home Information Packs

Following news that the Royal Institute of Chartered Surveyors is to mount a legal challenge to Home Information Packs, the Chancellor has defended the decision to introduce HIPs for house sales in England and Wales.

Speaking on BBC Radio 4's 'The World at One', Mr Brown said the packs contained "vital environmental information" about a home. "I think almost anybody who is an ordinary citizen looking at this will say that it is a good thing that this environmental information about a home is being made available," he said.

AHIPP website

11 May 2007

"Home Information packs will strip out a lot of the wasted cost and effort involved in the home buying and selling process, particularly in those cases where sellers opt to include the voluntary Home Condition Report (HCR) in their pack", says Mike Ockenden, Director General, The Association of Home Information Pack Providers.

The HCR will provide detailed information on the condition of the property being marketed, providing buyers with relevant and honest information on the property from the outset and allowing sellers to make any necessary repairs before the property goes on the market.

Citywire website

10 May 2007

Good news for DEAs and HIs

The Government is to introduce Energy Performance Certificates (EPCs) for all buy-to-let properties by the end of 2008, including local authority owned and other social housing. This follows the announcement that 1.8m rental properties will require an EPC next year.

The Association of Home Information Pack Providers (AHIPP) are regularly lobbying the Government to consider changing the requirement for rented home EPCs to be every 3 years, from the current position of 10 years.

Daily Mail

20 March 2007

FULL SURVEYS WILL ULTIMATELY COME INTO FORCE

Ruth Kelly, Secretary of State for Communities and Local Government, has said in a Report published by MPs on 19th March that Home Condition Reports will ultimately become compulsory.

In an address to the Communities and Local Government Committee, Kelly stated: "I am convinced that the market is changing in such a way that consumers will want this, buyers will want this, sellers will want a Home Condition Report and, in fact, it will be in the interest of estate agents ultimately as well."

Communities & Local Government Website

25 January 2007

ENERGY PERFORMANCE CERTIFICATES TO BE ADDED TO PROPERTY PARTICULARS FROM 1 ST JUNE – REPORT FINDS 23% OF BUYERS HAD A TRANSACTION FAILURE – UK PROPERTY SALES SLOWEST IN EUROPE

The Government has set a target for reducing carbon dioxide emissions by 60 per cent (relative to 1990 levels) by 2050, therefore, it is no surprise that a consultative document on Home Information Packs (HIPs), released 25 th January, is placing heavy emphasis on the importance of Energy Performance Certificates (EPCs).

The EPC has been given added urgency following the recent publication of the Stern report into climate change and will be the first document in the HIP when launched on 1 st June. This is to encourage consumers to use the information about the energy efficiency of a property, and to take practical steps to reduce carbon emissions and save on energy bills.

The other main points from the paper were:

i) New guidance to local authorities on providing prompt access to all search information

ii) Sellers will be able, for an initial transitional period, to market their home as soon as an EPC and key legal documents are provided as long as searches and leasehold documents (where relevant) have been commissioned. The transitional period will be reviewed after 6 months.

iii) Flood and ground stability searches will be required in packs as soon as systems are available to enable pack providers to find out quickly & cheaply if the property is in an ‘at risk’ area.

iv) Fines for estate agents who fail to produce Home Information Packs (including Energy Performance Certificates) could potentially be increased from £200 to £500

The Mori HIPs baseline report found that buyers and sellers currently face transaction times which average more than 6 months from marketing to completion, making them among the slowest in Europe. One sale in four took 8 and half months to complete and 23 per cent of buyers who completed a sale had at least one failed transaction

AHIPP website

12 January 2007

EARLY FEEDBACK FROM ROLL OUT PROVES CONSUMER DEMAND FOR HIPS

Feedback from the early roll out of Home Information Packs (HIPs) has indicated that consumers are welcoming HIPs, with many packs commissioned within the first month of the launch.

The early roll out in six locations across the UK, launched by the Association of Home Information Pack Providers (AHIPP) in November and supported by Government (who chose to follow AHIPP and carry out their area trials in the same six areas) was greeted with a positive response from local consumers. Many have since asked for a HIP on their home, with the majority also requesting the voluntary Home Condition Report (HCR).

Mr Mole of North Shields, who has recently requested his pack through estate agent Fresh Property Centre said: "I have opted for a full pack, with the Home Condition Report. I am keen for a quick sale and I believe that by having all of the information about my property upfront it will save time further down the line, as the buyer will be able to make a more informed decision from the offset."

The launch was also welcomed by many forward thinking agents who are now facing up to the reality that HIPs will happen and are keen to get processes in place to ensure they are ready, ahead of the mandatory introduction next June.

Kit Johnson, Director of Kit Johnson Residential in Bath, who is taking part in the roll out said: "We are delighted to be offering our consumers an opportunity to sample the packs ahead of their mandatory introduction next June. We hope it will make the whole house buying and selling process more transparent - helping to speed up transactions which is what the consumer wants."

Paul Broadhead, Deputy Director General for AHIPP added: "We have seen many consumers now enquiring about the packs with their local estate agent. In fact, feedback from our members has suggested that over 700 packs have already been commissioned since November, over 60% of which have included an HCR, (and in some locations this rises to over 90%).

"Estate agents play a key role in informing the public and explaining the various benefits and processes involved in purchasing a pack and I am pleased to see a rapidly increasing number of businesses becoming more proactive.

"The reality is HIPs are happening and we have seen clear indications that more businesses are now taking steps to prepare, with AHIPP membership continuing to grow, up a further 10% since the roll was first announced in August."

The AHIPP roll out of packs in the next 12 locations is likely to fuel further demand with more consumers able to benefit from a pack ahead of the June deadline.

Anne Ashworth, Property Editor, The Times

12 January 2007

The Government is resolute on HIPS. But too few energy inspectors may just be one of its problems.

The mountain of paperwork involved in selling a home will grow taller this year. From June 1 - a date now (at the time of writing) just 97 working days away - anyone putting a property on the market must provide a home information pack (HIP).

After an embarrassing government climbdown, the home condition report is no longer an obligatory part of this controversial dossier. But an energy performance certificate (EPC) will; be required. This will score a property's use of fossil fuels on a scale from A to G: an A grade indicates a home which is the epitome of sustainability; a G grade means it is an environmental menace.

The new awareness of the necessity to be green and of higher utility bills makes the EPC a very useful document for the househunter. But there is speculation that the dawn of a more eco-conscious Britain may be delayed, since there may not be enough trained energy inspectors by June 1.

13th December 2006 - Ruth Kelly speaking at the WWF event "Towards Zero Carbon Development"

"One way Government can help (reduce CO2 emissions) is by giving people the information they need. From June, Energy Performance Certificates will be a compulsory part of the new Home Information Packs. By 2009 we expect almost every building in the country to have an Energy Performance Certificate when built, sold or rented out."

Estate Agency News

Dec/Jan issue

David Perkins has sought to advise Estate Agents on how they should best prepare for the arrival of Home Information Packs. He suggested that picking a HIP provider that is a member of AHIPP (HIP HIP hooray.com is one such company) is a good starting point, saying "it might be prudent to use an AHIPP member," adding "All AHIPP members must follow the new Code of Practice." He continued: "Estate agents minded to go down this route have a reasonable degree of choice and should be able to find a firm with which they can build a reliable working relationship."