News

Home Information Packs: still more questions than answers

News

Lucy Barnard

26 March 2007

Residential

With only slightly more than two months to go until their proposed introduction, estate agents are still asking whether Home Information Packs are really going to be introduced on June 1st.

Already the Council of Mortgage Lenders, the RICS and the Law Society have called on the government to at least delay the implementation of the packs so that further studies can be made on what effect they will have on the housing market.

Wednesday’s budget ambiguously uses the phrase “later this year” for the introduction of Energy Performance Certificates (EPCs), the integral energy assessment part of the packs which will require thousands of Energy Assessors to look at the carbon footprint of each individual house before it is marketed.

Crucially, the RICS announced triumphantly last week, it contains no reference to the June 1st launch date the Department of Communities and Local Government (CLG) has announced, which suggests that there is room to push the date back.

RICS spokesperson James Scott Lee says: “We have asked the CLG to delay the EPCs until November, a time of year when the residential market is better suited to handle the change, and having the Chancellor’s support adds further weight to our argument.”

Scott Lee adds that the Chancellor also seems to be proposing a flexible approach to when EPCs should be produced.

He has said “at the point of sale” in contrast to CLG’s policy of producing the EPC when the property is first marketed.

But, as one head of a national chain of estate agents, told Estates Gazette: “We still really don’t know anything until the final regulations go before parliament. Before then we’re getting everything ready for implementation but I really wouldn’t be surprised if the date changes.”

Last month the Council of Mortgage Lenders, whose members account for 98% of the residential mortgage market in the UK, called on the government to delay the introduction of the packs.

It was the CML’s negative reaction to the packs last summer which is thought to have encouraged the government climb-down on including Home Condition Report surveys within the packs.

To counter criticism from the RICS, CML and Law Society, Home Information Pack providers announced in a letter to housing Minister Yvette Cooper that it was ready to deliver HIPs effectively and efficiently as of June 1st this year.

The letter from the Association of Home Information Pack Providers (AHIPP), which was signed by over 100 industry members said that any market impact due to the introduction of HIPs is likely to be minimal and short lived; it described the suggestion that HIPs will deter sellers from entering the market because of cost as “frankly absurd” and added that its own research showed that if even just 10% of consumers opt to follow the energy saving guidelines contained in the packs, C02 emissions could be reduced by as much as 320,000 tonnes every year.

Mike Ockenden, Director General of AHIPP says: “Our recent letter which was sent directly to Yvette Cooper offers unequivocal assurance from the industry that it is ready to offer packs as of the June 1st.

Calls from those who wish to see delays, for whatever reasons or vested interests, should be ignored by the Minister, who should feel confident in delivering this consumer and environmental reform on the June 1st.”

With only slightly more than two months to go until their proposed introduction, estate agents are still asking whether Home Information Packs are really going to be introduced on June 1st. Already the Council of Mortgage Lenders, the RICS and the Law Society have called on the government to at least delay the implementation of the packs so that further studies can be made on what effect they will have on the housing market. Wednesday’s budget ambiguously uses the phrase “later this year” for the introduction of Energy Performance Certificates (EPCs), the integral energy assessment part of the packs which will require thousands of Energy Assessors to look at the carbon footprint of each individual house before it is marketed. Crucially, the RICS announced triumphantly last week, it contains no reference to the June 1st launch date the Department of Communities and Local Government (CLG) has announced, which suggests that there is room to push the date back. RICS spokesperson James Scott Lee says: “We have asked the CLG to delay the EPCs until November, a time of year when the residential market is better suited to handle the change, and having the Chancellor’s support adds further weight to our argument.” Scott Lee adds that the Chancellor also seems to be proposing a flexible approach to when EPCs should be produced. He has said “at the point of sale” in contrast to CLG’s policy of producing the EPC when the property is first marketed. But, as one head of a national chain of estate agents, told Estates Gazette: “We still really don’t know anything until the final regulations go before parliament. Before then we’re getting everything ready for implementation but I really wouldn’t be surprised if the date changes.” Last month the Council of Mortgage Lenders, whose members account for 98% of the residential mortgage market in the UK, called on the government to delay the introduction of the packs. It was the CML’s negative reaction to the packs last summer which is thought to have encouraged the government climb-down on including Home Condition Report surveys within the packs. To counter criticism from the RICS, CML and Law Society, Home Information Pack providers announced in a letter to housing Minister Yvette Cooper that it was ready to deliver HIPs effectively and efficiently as of June 1st this year. The letter from the Association of Home Information Pack Providers (AHIPP), which was signed by over 100 industry members said that any market impact due to the introduction of HIPs is likely to be minimal and short lived; it described the suggestion that HIPs will deter sellers from entering the market because of cost as “frankly absurd” and added that its own research showed that if even just 10% of consumers opt to follow the energy saving guidelines contained in the packs, C02 emissions could be reduced by as much as 320,000 tonnes every year. Mike Ockenden, Director General of AHIPP says: “Our recent letter which was sent directly to Yvette Cooper offers unequivocal assurance from the industry that it is ready to offer packs as of the June 1st. Calls from those who wish to see delays, for whatever reasons or vested interests, should be ignored by the Minister, who should feel confident in delivering this consumer and environmental reform on the June 1st.”