theHIPexchange
Home Information Packs - benefiting consumers

The Government today announced a package of measures to help ensure consumers are seeing the vital information in Home Information Packs and are receiving a higher standard of service in the home buying and selling process.

The new measures include: developing a new set of standards with industry on what consumers should expect from property professionals in the home buying and selling process; further building on the quality of information in the packs; working with industry to ensure that consumers are fully seeing and benefiting from the HIP, including the EPC, early in the process; extending until the end of the year the provisions enabling consumers to market their home as long as they have ordered and committed to pay for a HIP, and the provision requiring the lease to be included in the HIP for leasehold properties.

The latest figures on HIPs show that consumers are already benefiting from the introduction of Home Information Packs. More than 700,000 homes now have energy ratings as a result of HIPs, helping home owners to save money on their fuel bills and cut carbon emissions. Greater competition in the property searches market is also leading to reductions in costs with some local authorities reducing their search fees by up to £120.

Housing Minister Caroline Flint said: "Home Information Packs are already bringing benefits to consumers. Property search costs are falling and new information on energy efficiency can help cut carbon emissions and enable prospective purchasers to get a better idea of the likely costs of energy bills.

"But we want to do more to improve the HIP and the home buying and selling process for consumers. Developing a new set of standards for industry is an important next step in further ensuring all consumers get the highest quality of service when buying or selling a home. We also want to ensure all consumers are seeing the vital information in a HIP early in the process so they can fully benefit.

"Alongside the development of a new industry code, we will continue to work with the industry to promote higher and consistent standards of practice on the delivery of HIPs." Today's announcement includes:

• Work to develop a new set of standards for industry involving leading bodies such as the RICS, NAEA, and the Law Society. This aims to bring together best practice within the industry into a single set of standards that all consumers can expect from property professionals in the home buying and selling process, including redress arrangements, the provision of Home Information Packs and delivery of local searches.

• Work with the industry to ensure that agents and HIP providers understand and act on the requirement to prepare the HIP as soon as the EPC is produced, so that it is available to potential buyers early in the process.

• Develop in partnership with the property professionals, the means for capturing consumer friendly information for inclusion within the HIP, such as property fixtures and fittings, access and boundries. This will draw on the lessons learnt from our Area Trials.

Posted 15/05/07
CLG: Green findings - Average four bed properties are getting an 'E' rating.

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 could 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.

Posted 15/05/07
Case study of a four bed property needing an Energy Performance Certificate to go in a HIP.

"As of today, about 60% of properties in England and Wales are now included in the Home Information Pack scheme as three bed roomed properties are added this week. There have only been about 500 full HIPs done in August as the market for larger homes usually pauses in the summer and most properties that would qualify had been rushed on before the 1st August deadline.

One practical example of how the system can work is the case of Mr and Mrs Campbell who own a 4 bedroom property in Abingdon in Oxfordshire. Although the Campbells haven't put their house on the market yet, they are preparing their own HIP but along with the searches, they needed an Energy Performance Certificate to go in it. They registered their home on The HIP Exchange which matches providers of both HIPs and Energy Performance Certificates with people who need them. They quickly received two bids and accepted the lowest of £115. The Energy Assessor, Antony Straszewski of Proport Services undertook the inspection last week and the report was provided to Mr and Mrs Campbell the same day.

"This illustrates how easy the system can be" said Henry Pryor, founder of The Hip Exchange. "We have over half of all accredited Energy Assessors in the country registered on the Exchange waiting to do business for home owners, agents and solicitors. Whatever your view of the benefits of HIPs, this example demonstrates that the industry has worked hard to provide a solution that accommodates the requirements of Government and the practicalities of the house selling process.

"I am confident that the roll out to three bed properties can be accommodated with ease and that after some adjustment, home owners will find that HIPs are not an insurmountable problem and that in fact, preparing their own will help ensure that it is done correctly and is in their best interests."

Nearly 65,000 properties are expected to require a Pack this month. This figure is expected to rise to nearly 100,000 in January and over 200,000 in August next year as rental properties are added.

Posted 15/05/07
Hips for three-bed homes next month - says This is Money

Home Information Packs are to be introduced for 11m more properties from next month despite no evidence that they are working.

Ministers have decided to push ahead with the next stage of the scheme in the face of warnings that it is severely flawed.

The £500 packs were introduced for properties with four or more bedrooms on August 1. Yet just two weeks on, the Government is preparing to announce they will cover three-bedroom homes from mid-September at the latest.

And it is expected that they will cover the smallest properties by the end of the year.

Nearly 1m three-bedroom properties are put on the market every year. Around 11m homes have three bedrooms - the most common property type.

HIPs include a certificate giving the home an energy efficiency rating, local authority planning searches, information on drainage and water connections, and notice of outstanding mortgages.

Leasehold properties need even more detail, such as service charges and maintenance.

The Government claims this is all important information for buyers and will help speed up purchases. But critics say they contain nothing that is not already provided. The high cost will also deter sellers, they claim - which could stall the property boom.

The official launch of the packs, which are not necessary in Scotland, was delayed earlier this year because of a shortage of inspectors.

A timetable drawn up by the Department for Communities and Local Government in June said they should be extended to cover threebedroom properties once 2,000 inspectors are accredited. Official figures seen by the Daily Mail show there are 2,969 accredited inspectors and more than 4,000 who have passed the necessary qualifications. But there are concerns that there will not be enough in property hotspots. As of August 9, there were only 237 inspectors accredited for London and 495 for the South East.

Mike Ockenden, director of the Association of Home Information Pack Providers, said last night: 'There are no issues or problems. We have more than enough assessors and the geographical balance is fine.'

Opposition comes from the Council of Mortgage Lenders, the Royal Institution of Chartered Surveyors, the Law Society, the National Association of Estate Agents and the consumer watchdog Which?

The RICS said: 'We would urge the Government to consider all the facts and assess the market before they roll this out further.'

Shadow Communities Secretary Eric Pickles said: 'If it is the case that the scheme will soon be rolled out, then many more people will face the extra cost and bureaucracy of having to deal with this worthless document.'

Posted 15/05/07
Every home sale will need a HIP in a few weeks - says Daily Mail

The much-criticised Home Information Packs will apply to all property sales by the end of the year, it emerged yesterday.

Despite opposition from lawyers, surveyors, estate agents and mortgage companies they became compulsory for homes with four or more bedrooms yesterday.

But from September 1 they will cover three-bedroom homes, and then smaller residences before the end of the year, said the Association of Home Information Pack Providers.

Ministers are pressing ahead with the packs, which will cost homeowners between £300 and £1,000, despite almost universal opposition and claims that they are flawed.

One reason could be the windfall they provide for the Government - a stealth tax worth up to £110 million through VAT.

The HIPs should have been introduced everywhere by June 1 but there was a shortage of inspectors who will carry out energy efficiency surveys of all properties.

There are now 2,000 inspectors in place. Ministers believe a total of 3,000 will be needed to cover all new house sales.

Thousands are going through training and should be qualified within the next eight weeks.

Companies which have been set up to compile HIPs revealed yesterday that they expect the Government to require packs for all new sales by the end of the year.

Mike Ockenden, director of the association, said: "We expect HIPs for three - bedroom properties to be required from September 1.

"At the present rate of progress, the remainder of the housing stock should follow soon after."

The Government claims HIPs will provide important information to buyers and so help speed up purchases, minimising the opportunity for gazumping.

They will include an Energy Performance Certificate giving the home an energy efficiency rating, local authority planning searches, information on drainage and water connections, and notice of outstanding mortgages.

Where the property is leasehold, a raft of extra detail on service charges and spending on ma

intenance is required. Opponents of the regime include the Council of Mortgage Lenders, the Royal Institution of Chartered Surveyors, the Law Society, the National Association of Estate Agents and the consumer watchdog Which?

They believe the packs contain little new or useful information while the high cost of HIPs might deter owners from putting their home on the market, creating a property famine.

TV property expert Kirstie Allsopp joined the attack yesterday. "An Englishman's home may once have been his castle, but under Labour you have to get the state's permission and pay a state- sponsored inspector, before a prospective buyer can cross the threshold," she said.

"The country's solicitors, surveyors, estate agents, builders, banks and building societies are all asking ministers to go back to the drawing board.

"Hopes and dreams are tied up in bricks and mortar. Yet the Government, in their inability to admit they are wrong, appear determined to play politics with property."

The Conservative shadow housing minister Grant Shapps said: "Moving home is already one of the most stressful experiences in life. Yet Gordon Brown has persisted in introducing these flawed packs against the better judgment of both consumers and housing experts."

The packs have been championed by housing minister Yvette Cooper who said: "HIPS just bring together the information that you have to get anyway and you have to pay for anyway."

HIPS will not be applied in Scotland, including the constituency of the Prime Minister, where there is a different house sale system.

Posted 15/05/07
Can you avoid HIPs?

From next Wednesday anyone starting to market their home will need a Home Information Pack if it has four or more bedrooms. If you use an estate agent then they will be responsible for ensuring that one has been ordered but with over 2.5 million properties marketed every year, how will anyone know if you have bothered. Can you save 300+ by not getting a HIP?

During the long and at times heated debate in the run up to Home Information Packs, there have been any number of suggestions about how you can avoid having to get a HIP. Here are some of the myths;-

I can describe my fourth bedroom as a study. The RICS suggested doing this might save you the cost of the HIP but according to the property website Primemove.com, the difference between a three bedroom and a four bedroom house in London is about 160,000.

I can take out an advert before the end of July and even if I dont market my house until next year, it will be exempt. The transition period is for property on the market now but will extend to any property being marketed in 2008

The fine if you dont have a HIP is only 200 so why bother? Trading Standards officers have the power to refer an estate agent who fails to comply to the Office of Fair Trading who can take steps to ban an estate agent from practicing.

So long as I order one then I am covered. I can cancel it if I decide not sell. An order made for a HIP cannot be cancelled unless previously agreed with the Pack provider. It seems unlikely that such an offer would be acceptable and the provider would successful sue to recover the cost though the Small Claims Court.

If I sell the house myself I dont need a HIP. The Act defines the responsible person as either the homeowner or his agent if one is instructed.

No one is going to bother checking if every property has had an HIP. By recording the details of every property advertised on the Internet in the same way that propertyaggregatorslike Primemove.com and then cross referencing them with the central register of Energy Performance Certificates it is possible to identify any qualifying property that requires a HIP and by extension which ones have not.

The HiP Exchange offers a compliance service based on this model to larger solicitors and estate agents who want the reassurance that they are not missing any properties.

Posted 15/05/07
Energy Performance Certificates expected to average £130.00

With one week now to go and assuming the Government doesn’t perform another u-turn Home Information Packs will be law in England and Wales.

From 1st August all properties that go on the market with four or more bedrooms will need to have ordered a Home Information Pack. A crucial part of the pack is the Energy Performance Certificate or EPC which is prepared by one of the newly trained Domestic Energy Assessors. Just over 2000 have now been accredited and are available to work.

The HIP Exchange matches properties requiring either a full Pack or an EPC with independent Providers from across the country expects the average cost of the EPC to be around £130. Henry Pryor, founder of the eBay style site said “There will be some providers who are initially quoting less for the Energy Certificate but from the feedback we have been getting we expect the average across the country to be around this level. However, as soon as smaller properties are included later in the year, the average cost is expected to drop.”

Prices for a full Home Information Pack will start from £299 for freehold properties although leasehold properties could cost considerably more.

Posted 15/05/07
Making HIPs available sooner

It is essential that buyers are able to see information in the HIP as soon as possible. However, sellers can currently commission and pay for a HIP and then start marketing their property for up to 28 days before the pack is available, meaning some buyers may lose out by making decisions about purchases without the benefit of seeing the pack. The regulations on first day marketing will change from 6 April 2009, to ensure buyers have certainty that the HIP will be available as soon as a property comes onto the market, and that sellers get to see the product they are paying for.

Expanding HIP content Details in the Property Information Questionnaire (PIQ) will include flood risk information, gas and electricity safety, service charges, structural damage and parking arrangements, to help buyers make decisions on whether to view and purchase a property. The new PIQ will go alongside other important information in the pack, such as energy performance certificates.

Better service It is important that both buyers and sellers get a good service from professionals working in the industry, and know how the industry is regulated and where to go if they have concerns or complaints. That is why the government welcomes the Office of Fair Trading conducting a comprehensive study of how the home buying and selling works, looking at competition between service providers and how consumer interests are served.

Continuing to explore more options for consumers The government will work with industry to explore ways of making sure consumers have appropriate information about their future property's condition. The latest figures on HIPs show that consumers are already benefiting from their introduction. More than one million homes now have energy ratings as a result of HIPs, helping home owners to potentially save money on their fuel bills and cut carbon emissions. Greater competition in the property searches market is also leading to reductions in costs with some local authorities reducing their search fees by up to £120.

Posted 15/05/07
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