22/11/2007
Full roll-
The Government today announced the roll-
Communities and Local Government issued a press release and Ministerial Statement
on the full roll-
[see
end of press release for link to Ministerial Statement]:
GREEN RATINGS TO BENEFIT ALL HOME BUYERS
First time homebuyers will see their upfront costs drop and all home buyers will,
for the first time, receive A-
Buyers whose homes score poor energy ratings of F or G (currently around one-
Sixty per cent of the market is already covered by HIPs. The Government has announced the rollout of HIPs and EPCs to the rest of the market from December 14 this year, as the criteria set out for roll out on 11 June have now been met.
House hunters will get detailed information about the energy efficiency of their
home with a green rating of A-
The final stage of the roll out follows careful analysis of how HIPs and EPCs have been working in order to maintain their smooth introduction into the housing market.
The extension of HIPs to all properties will particularly benefit first time buyers through a reduction in their upfront costs by not having to pay for a pack, helping them in getting a foot on the housing ladder.
The packs are already beginning to bring benefits to consumers with average property search costs starting to fall with the new competition from HIPs – 85 local authorities have already reduced their charges by £30 on average.
Housing Minister Yvette Cooper said:
“HIPs and EPCs are already helping consumers
to save hundreds of pounds off their fuel bills and are cutting search costs too.
All home buyers will be able to benefit from energy efficiency advice, with those
receiving low green ratings of ‘F’ and ‘G’ especially targeted for support and grants
to make improvements to cut their costs and carbon emissions.”
Early monitoring of the scheme shows the roll out has gone smoothly.
- HIPs are taking on average 7 to 10 days to prepare
- The majority of property, and drainage and water searches, are being delivered promptly within 5 days
- EPCs are being prepared on average within 2 to 4 days
- The average cost of a pack is £300 to £350 – costs which apart from the new information included in the EPC are already part of the home buying and selling process.
The Government has also today published an independent report by Europe Economics on the impact of HIPs on the market. Their report 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. The report concludes that the impact on listings is short lived and the impact on the market is marginal compared to the wider factors.
The Government also asked Europe Economics and Peter Williams of the National Housing and Planning Advice Unit (NHPAU) to consider whether changing housing market conditions meant we should change the approach to completing the roll out. They concluded that there are strong arguments for rolling out as planned, and further delay could cause greater market difficulties and uncertainties.
The implementation of HIPs so far and the work of the Stakeholder Panel have also highlighted further improvements needed to benefit consumers.
Early monitoring of HIPs has highlighted stakeholder concerns that for some consumers leasehold documents are proving hard to obtain quickly and, in some cases, disproportionate charges are being requested. In the majority of cases we would expect leasehold documents to be readily and easily available as part of HIPs. However, given the higher number of leasehold properties amongst one and two bedroom homes, to ensure a continued smooth roll out we will phase the introduction of leasehold information.
The Government will temporarily amend the HIP regulations so the lease document itself must be included, but other leasehold information will be introduced as a requirement in six months’ time.
The Government will also set out other consumer-
- ask 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 provision of leasehold information and the search process.
- 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.
- extend the temporary first day marketing provisions for an additional five months to allow for full flexibility — from 1 January to 1 June, to ensure continued smooth implementation of HIPs.
The introduction of HIPs is part of a wider programme of reforms to home buying and
selling including e-
Our early monitoring shows that implementation has gone relatively smoothly with
HIPs taking on average 7-
To read the Minister’s statement, click
To read the Europe Economics
report click here
17/08/2007
CLG Confirm rollout of HIPS to include 3 Bedroom properties.
Press Release
17 August 2007
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 -
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 -
