News

11 December 2009 - Property may be more eco-friendly as a result of Home Information Packs (HIPs).

According to Mike Ockenden, director-general of the Association of Home Information Pack Providers, the majority of homeowners have found the packs to be a helpful guide in reducing their environmental impact.

The expert suggested that 30 per cent of buyers and sellers polled claimed they have implemented one of the recommendations in an energy performance certificate.

Commenting on this, he remarked: "That to me says that HIPs are actually helping to reduce carbon emissions."

He added that consumers like HIPs and many of the costs involved in them are not new.

The packs provide buyers with key information on the property they intend to buy and they must be provided by the seller or the seller's agent.

They contain a number of compulsory items, including evidence of title and a sale statement, as well as sustainability information for newly-built homes.

Guide to Bristol
07 December 09

23 Spetember 2009 - HIPs cut exchange times by a week

Statistics released this morning claim that HIPs have speeded up the time between offer and exchange by an average of one calendar week.

The figure comes from Connells.

It is based on a sample of over 37,689 properties put on the market with Connells’ 466 branches after August 2, 2007, and which exchanged before September 11 this month.

Mike Ockenden, director general of trade body AHIPP, said: “A seven-day reduction on average is an impressive figure, enough to make a big difference to all parties in a chain.

“These new statistics simply add to the growing body of evidence that directly contradicts the claims made by some critics of HIPs. The system as it stands may not be perfect but, as these results clearly show, HIPs have led to important improvements being made.

“At AHIPP we are working to ensure that such positive steps are not lost going forward.”

Roger Wilson, Connells conveyancing services director, said: “From my own audits, I have seen first hand how having the legal paperwork and searches available up-front can speed up the due diligence process.

“Whilst HIPs have not achieved all their objectives, we urge an incoming Government in 2010 to undertake a detailed review on which aspects are working and which are not, before making a decision.”

Estate Agency Times

8 Spetember 2009 - Home sales and prices are finally rising estate agents say

GOOD news could finally be on the cards for people who want to sell their homes.

Estate agents have said they have seen a huge increase in sales throughout August and into September, following an 18-month slump.

Guy Williamson, branch manager of Douglas Allen in Woodford Green, said: “It is an upturn in the market. It's picked up from March or April in terms of buyer levels."

“The number of properties on the market is limited, so it's driven prices up. There's a buoyancy in the market and there's an increase in confidence.”

And John Wagstaff, of Petty, Son and Prestwich in Wanstead, added that the Government's introduction of the Home Information Pack (HIP) has also helped.

He said: “It costs somewhere between £300 and £500 to get one so people aren't putting their houses on the market unless they're absolutely committed to moving.”

The HIP contains various documents such as registration from the land registry and was made mandatory for most home sellers last year.

Mr Wagstaff said fewer sales are now falling through because of this and fewer people are selling their houses “on a whim”.

He said: “It's keeping the prices at as high a level as I've seen for 18 months and the number of sales going through is at a very high level as well.

“It's a different world to this time last year. Estate agents were closing and going into administration and it was very, very negative, but this year, it's much more positive.”

Demand is now exceeding supply, he said, meaning sales are being agreed more quickly.

“If you've got a quality buyer and a seller who has spent the money on a HIP, there's a pretty good chance the sale will go through. It's a sellers' market,” Mr Wagstaff said.

By Claire Hack

21 August 2009 - Agents 'right' to charge more for HIPs, says Ockenden

Trade body AHIPP has jumped to the defence of estate agents after they were criticised in a report from Which? showing that some charge far more for HIPs than consumers would pay if buying direct.

AHIPP director general Mike Ockenden said the results must be viewed in the correct context. He said: “It is hard to think of any product or service that isn’t cheaper if bought online rather than on the high street. Even taking this into account, comparing the two directly is misleading.

"When an estate agent is appointed to sell a property, they are automatically subject to a host of responsibilities and duties, regulated by law and punishable by fine, or worse. As estate agents are the responsible person at law, if presented with a HIP purchased from an independent source they may need to charge extra fees for carrying out additional checks to cover their responsibilities."

"For this reason alone, it is entirely appropriate that estate agents are remunerated accordingly and the potential impact of such hidden extra costs should not be discounted."

"Furthermore, consumers need to check exactly what it is they will be receiving from independent providers as some are known to tie in conveyancing services to the HIP, so the discount may not be as appealing as at first glance. The only way for customers to avoid hidden costs or unnecessary additional expense is for them to purchase their HIPs from providers who comply with the HIP code."

"These regulations are in place to protect the consumer, and as we all know, online purchasing is one area where consumer protection remains thin."

Nick Marr, founder of the sale-by-owner site Little House Company, said he does not get complaints from vendors about HIP costs, but about the way agents sell the HIP.

He said: "The number one complaint we receive from home sellers is that estate agents were not making people aware that they can buy a HIP independently. They felt forced to pay the fee and initially blamed the Government for what they saw as an unnecessary tax on home sellers."

"The second most common complaint was that home sellers found that some estate agents’ HIPs were not portable. Property sellers who want to take the private sales route were being presented with a huge bill when they wanted to end the relations hip with the agent."

Paul Smith, chief executive of Spicerhaart, found by Which? to have supplied the priciest HIP for a two-bed leasehold flat, at £516, said the example used was not like-for-like with other estate agencies and HIP providers who are also conveyancing businesses, and it failed to reflect that the Spicerhaart HIP cited includes additional legal elements.

He said: "The research doesn’t show the full picture. The majority of the lower cost or free HIP providers add on fees elsewhere, for example making it a condition of purchase that you use their conveyancing services for which they charge a higher price."

"Additionally, on freehold properties, which is the bulk of our work, our prices are similar to other agencies. The one case identified happens to be a leasehold property which makes the HIP more expensive because of the additional legal work involved."

But London agent Eric Walker, of Bushells, said consumers should not have to use a HIP provider’s conveyancing service or pay mark-ups. His own firm refuses to deal directly with HIPs, and adds nothing on.

He said: "Of the three HIP providers used by Bushells, none have a requirement to use their conveyancing service. In fact two don’t offer such services."

"We give our vendors details of our recommended HIPs providers and they pay the cost price directly. Bushells receives no commission whatsoever from these fees. Further, as the seller has paid for the HIP, it is their property, so that should they decide to use another agent, they can pass on the HIP immediately."

"Our HIPs range in price from £227 plus VAT to £270 plus VAT – significantly cheaper, I’m told, than Foxtons, Halifax, Savills, Haart, Barnard Marcus and most other agents."

"My view is that HIPs will be a short-term issue as the Conservatives have pledged to abolish HIPs should they win the next election. If that happens, then perhaps we can work towards finding a proper solution to speeding up the conveyancing process rather than adding a delay to marketing and increasing sellers’ costs at a time when that is the last thing they need."

Friday 21st August 2009

13 August 2009 - Be aware of cheap, budget HIP & EPC providers

Cheap Home Information Pack (HIP) and Energy Performance Certificate (EPC) providers in the market place, are unfortunately not delivering the promised service or product at times, within the timescales agreed. A number of companies are taking excessive time to deliver or arrange EPCs, some have not received their HIP or EPC at all as the company has gone into liquidation and ceased trading.

A number of estate agents have reported that they are expecting the HIP to be ready to allow legal marketing within 3-4 days. In many cases the energy assessor has not even contacted the owner in this timescale nevermind the HIP being prepared to the extent that is now required by law.

Poor quality HIP providers have to an extent managed to go un-noticed as there was not a major requirement for the documents to be prepared efficiently and in a timely manner; as prior to 6th April 2009 a property could be marketed as long as a HIP had been ordered. However, this has changed, if you want your property marketed quickly and legally you really need to consider whether you HIP provider will deliver this.

From the 6th April 2009, to be able to legally market your property the following documents must be in place and available:

• Index
• Property Information Questionnaire (PIQ)
• Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA) for new homes marketed before completion
• Sustainability information (new homes only)
• Sales Statement
• Evidence of Title - HMLR Title Plan and Register. For unregistered properties a search of the index map must be included.

So why the poor service?

Am afraid it is time for the phrases and clichés you will often heard from your parents and grandparents and never have they been more true.

“If something looks too good to be true, it normal is..”

The HIP prices are often so cheap from budget HIP providers as they hope, plan or it is a requirement that you use other services from ‘them’, for example conveyancing or marketing of your property and they will obviously make more income from you in this respect.

Cheap, budget HIP providers will as is quite standard across the industry contract out the energy assessment to produce the EPC, an important part of the Home Information Pack. However, the main consideration for the 'budget HIP provider' when choosing an assessor for your domestic energy assessment appears to be……, yes you have guessed it, price.

“You get what you pay for..”

Domestic energy assessors (DEA) often tell us of ‘cheap HIP providers’ that call them to make offers of work at fees levels which are often described by them as insulting and they refuse to do the work due to this. These providers then continue to contact assessors until they have found someone who will do the work at these fees which often equate to less then the minimum wage.

They do seem to eventually find someone, though this can take them time, hence the delay, lack of professionalism and quality of the service which is often reflected in the assessment.

“Pay peanuts, get monkeys..”

Is a phrase we are hearing repeated by many DEAs frustrated by these companies and those DEAs who are accepting these very low fees.

There also seems to be an increasing level of ‘budget HIP providers’ who are delaying or struggling paying the domestic energy assessors they use, which does raise questions in regard to their long term security, viability and business model. If their cash flow is so tight they are not able to pay for services of DEAs that they have used, it raises concerns of whether they are close to shutting their doors and if the HIP will actually be produced.

A good number of these ‘cheap HIP providers’ cease trading one of which was reported on by Watchdog ‘HIPS company fails to deliver’ and there are sure to be more.

“There is no such thing as a free lunch..”

With these ‘cheap’ HIP and EPC providers, it may seem as that is what you are going to get, but please be aware this may not actually be the case and using one of these companies may turn out to be false economy.

August 13th, 2009 HIP-Consultant.co.uk (edited)

29 July 2009 - AHIPP hits out at Tory claims on wasted Packs

The Association of Home Information Pack Providers has hit out at Tory claims that half of the money spent on HIPs last year was wasted because the properties were unsold.

Director General Mike Ockenden said that Shadow Housing Minister Grant Shapps’s statement was “simply inaccurate”.

Ockenden went on: “He states that in 2008, 1.1m HIPs were purchased, but only 650,000 homes were sold. Perhaps, however, Mr Shapps should have stopped to consider how many of these properties went on to be sold in 2009. While it is easy to interpret statistics on an annual basis, this type of over-simplification makes accurate analysis impossible.”

“By using the statistics in this way Mr Shapps fails to take into account the most basic workings of the market. I’m also unable to see how this assertion corresponds with his previous claim that non-compliance levels [with HIPs] for 2008 were 50%.”

“It must be noted that the Shadow Housing Minister is now alone in claiming that HIPs have had an adverse affect on the property market.”

“His immovable stance on the issue is increasingly worrying, particularly given that property professionals are now almost universal in their calls for HIPs to be adapted rather than scrapped.”

“In the current climate, both the industry and the public are in need of guidance, not contradictory or misleading statements.”

Estate Agency News

05 June 2009 - BACKLOG OF EPC’s FOR COMMERCIAL PROPERTIES INCREASES

Landlords face huge fines for non-compliance.

Today National Energy Services (NES) released a research report highlighting an 81% level of EPC non-compliance within the commercial property industry. Government have consistently stated that the task of policing compliance is down to Trading Standards but have not issued specific guidance procedures.

Energy Assessor Panel along with NES, PSG Energy and ERS has been lobbying Government for months on the issue of non-compliance that has resulted in it promising to do so. This means that an estimated massive 1.6 million properties that currently do not comply either have to have an EPC produced or face huge fines of 12.5% of their rateable value up to £5,000.

NEW RESEARCH REVEALS EXTENT OF NON-COMPLIANCE WITH ENERGY REGULATIONS IN UK COMMERCIAL PROPERTY SECTOR

Even the greenest of businesses are unlikely to be able to make informed choices about the energy efficiency of the premises they buy or rent right now, according to new research published today by National Energy Services (NES).

In a mystery shopping exercise to check on compliance with European and UK law relating to the energy efficiency of buildings in the commercial property sector, NES discovered that more than 80% of agents it spoke to were unable to provide the mandatory Energy Performance Certificate (EPC) for the offices or shops they were marketing for sale or rent. These certificates are a critical part of the Government's efforts to reduce carbon emissions and energy bills for businesses.

88 out of 108 agents (81%) failed to provide an EPC. Almost half of these agents (47%, or 41 agents) said they believed the certificate was not necessary, or just could not give an explanation about why no EPC was available.

National Energy Services, which runs the NHER accreditation scheme, the UK's largest accreditation scheme for EPCs, is calling for Government to get rid of the anomalies between the commercial property sector and the residential sector where EPCs are much more readily available.

Austin Baggett, deputy managing director of National Energy Services said: "The EPC is not just any piece of paper. It's now required by law to inform potential buyers or tenants about the energy performance of a building, so that they can consider energy efficiency as part of their investment or business decision to buy or occupy that building."

"EPCs are a great vehicle to deliver the UK's carbon reduction plans. We have all the infrastructure in place, including thousands of qualified energy assessors ready to provide these certificates at short notice. But with 80% of commercial buildings not complying with the regulations, the potential for carbon and financial savings by business is seriously undermined.

"The display of the EPC rating should be mandatory on all commercial building particulars used by agents to market the building. This is already in place for the sale of homes, and it brings real transparency and help to consumers. In this way, the industry can almost police itself. But this does not reduce the importance of Trading Standard Officers actually going out and checking on compliance and taking action where necessary– something that they are clearly not doing at the moment."

"The energy assessor community is ready and waiting to work with Government and business to overcome the current problems with non-compliance. We would like to see a pan-industry working group that involves our members working on boosting understanding within the commercial property market. NHER energy assessors' skills, contacts and enthusiasm could and should be harnessed to communicate information at a local level.”

The NES research points out that, as a result of implementation of the EU Energy Performance of Buildings Directive in the UK, it is a legal requirement that all commercial buildings being marketed for sale or rent should now have an Energy Performance Certificate (EPC) available to inform prospective buyers and tenants about the energy performance of the building.

This requirement was phased in throughout last year and took full effect on 4 January 2009. It applies equally to all „non-domestic' buildings – from large city-centre offices to the typical High Street shops and offices that make up the vast majority of our commercial property stock.

Following anecdotal reports that compliance is very patchy, National Energy Services decided to investigate by undertaking a mystery shopper exercise among the leading commercial property agents in five regions in England and Wales who were offering commercial buildings for sale or rent.

Between 27 April and 22 May 2009, NES researchers telephoned 108 commercial property agents across five English regions on the pretext of acting for clients interested in renting or purchasing the freehold for a typical High Street office or shop. All agents were given until 1 June 2009 to contact the surveyor should an EPC have become available.

NES's experience was that the EPC either appeared within 48 hours of the conversation with the agent or not at all. Indeed, 88 of the agents (81%) failed to provide an EPC. When asked why not:

• Almost half (47% - 41 agents) said they believed an EPC was not necessary, or that they just didn't know.
• A further third (36% - 32 agents) said that they would only get an EPC at the point of sale. (This is in breach of the regulations which require the EPC to be provided well before entering into any contract to sell or let).
• 17% (15 agents) said that they believed the EPC was in the process of being undertaken.

NES is making four major recommendations as a result of the research:

1. Make the display of the EPC rating mandatory on all commercial building particulars used by agents to market the building. This measure could be achieved for commercial buildings quickly and at little or no cost.
2. Place the legal responsibility of providing an EPC on the actual entity marketing the commercial building (e.g. the commercial property agent). Currently, it is the responsibility of the seller or landlord offering the building for sale or let to make an EPC available for their building. This is unlike the dwellings sector, where the legal liability rests with the seller's estate agent.
3. Make the implications of non-compliance more acute by increasing the penalties. The current levels of penalties range between £500 and £5,000 depending upon a building's rateable value. Clearly this is not providing a deterrent to non compliance and therefore there is an argument that the penalties and enforcement are inadequate.
4. The Department for Communities and Local Government (CLG) should reinvigorate their communication programme with the property industry (particularly in the segment of smaller commercial buildings) and with trading standards departments.

To read a full copy of the report, go to: http://tinyurl.com/nhernews

On behalf of National Energy Services by Liz Male Consulting Ltd.

30 April, 2009 - Ten things: how to move your HIPs

The top tips to make life easier for buyers and sellers

1 The contents

The HIP must contain an index, an Energy Performance Certificate (EPC) and a PIQ, with information about the property's condition (see below). It will also need the proof of title and boundaries from the Land Registry; the searches; a sales statement; and a copy of the lease. A Home Contents form, showing fixtures and fittings included in the sale, is optional.

2 Off the hook

In a limited number of circumstances you do not need a HIP. For example, selling to a friend or family member; in this case, you are not marketing the property. For a full list of exemptions go to direct.gov.uk.

3 How much?

Your Estate Agent may include the cost of providing the HIP in his marketing fee. Or he may delay the fee (£250-£450) until the sale is completed. Solicitors can provide HIPs although, like agents, they will probably sub-contract to a specialist HIP provider. You should check whether this provider is a member of the Association of Home Information Pack Providers (AHIPP) at HIPassociation.co.uk.

4 Green rating

An Energy Assessor compiles the EPC after a visit to your home. The certificate grades your property on its energy efficiency. Scores range from A, impeccable, to G, menace. Before the inspector calls, consider making modestly priced improvements, such as better loft insulation.

5 Low score?

A low EPC grade does not mean that your house will never find a buyer. Howard Elston, of Aylesford, the Estate Agent, says: "I have never seen a buyer ask for money off because of a low EPC grading. People know that when they buy a Victorian terraced house it's going to be less energy-efficient than a new-build, and that's a compromise they are usually willing to make."

6 Take your PIQ

PIQ stands for Property Information Questionnaire, the newest element of the HIP. This checklist, compiled by the seller, preferably with the help of a solicitor, gives information on such things as parking, fire or flood damage.

7 But beware . . .

Simon Seaton, the Director of Fridays Property Lawyers, warns: "The PIQ is going to be a minefield for vendors. It asks the vendor difficult questions, the answers to which are actionable if a purchaser considers them to be misleading.

8 Pay attention

The whole HIP needs your care and attention. Your agent or solicitor may take responsibility for its assembly. But you should check its contents as you could be held accountable for any omissions.

9 Search delays

Providers take about five working days to complete HIPs. If the Local Authority Search is delayed it can be added to the HIP within 28 days after the property is put on the market. As Mike Ockenden, the Director of the Association of Home Information Pack Providers, says, search delays can be a bit of a postcode lottery.

10 Put your foot down

If you aren't satisfied with your HIP you have every right to complain. Under the Estate Agents Act 1979 all estate agencies must belong to an approved redress scheme, usually either the Ombudsman for Estate Agents scheme or the Surveyors Ombudsman Service. If your HIP provider has fallen short of the mark, go to propertycodes.org.uk.

A mixed verdict

Three weeks on, what do sellers think of HIPs? Research by the Association of Home Information Pack Providers (AHIPP) found that 100 per cent of sellers said the need for a HIP did not put them off selling.

When asked if they were a good thing, 85 per cent said yes; while 8 per cent said they were bad. Just over 60 per cent thought that the Government should try to improve HIPs. Ashley King, the chairman of AHIPP, told The Times: "They are not perfect, but the survey shows the foundations are now there. "

Still, not everyone is convinced. The National Association of Estate Agents says that they are an "unwelcome hindrance" as the number of homes on the market continues to decline.

Rebecca O'Connor

27 April, 2009 - Home Information Packs: Adapt, Don't Scrap

Home Information Packs should be adapted not abolished, say two thirds of property professionals ...

This week's Land Data Great Housing Market Debate asked property industry professionals whether Home Information Packs (HIPs) should be adapted or scrapped.

Two thirds of the respondents agreed that the Packs should be adapted rather than abolished, a sentiment that was supported by Monetary Policy Committee (MPC) member Kate Barker and Micheal Coogan, Director General of the Council of Mortgage Lenders (CML).

Mike Ockenden, Director General of the Association of Home Information Pack Providers (AHIPP), commented: "I am delighted to see that the industry is now taking a more united approach towards HIPs.

"While I do not deny that further amendments may need to take place before the HIP reaches its full potential, what this week's vote suggests, and what the Tory party should now recognise, is that there is an appetite within the industry to now work together to improve the current offering.

"HIPs aren't perfect, but scrapping them entirely would set us back years - instead, let's work with what we have to make improvements and advance the HIP for the advantage of all involved."

Property Finder.com

8 April, 2009 - BBC Watchdog advises consumers to use HIP code subscribers

A warning about using HIP providers who are not HIP Code subscribers

Click to view the BBC television programme Watchdog, featuring three customers who have suffered from using a company that is not a HIP code subscriber. Click here

4 April, 2009 - Changes to home information packs HIPs to include new property info questionnaire

From 6 April, you'll be able to get a copy of a home information pack (HIP) for any property you are interested in as soon as it comes on to the market.

In addition, the HIP will now contain a new property information questionnaire (PIQ).

The PIQ will contain useful information on structural changes / damage, flood risk, gas and electrical safety, parking arrangements and, for leasehold properties, additional information such as the current service charge.

First time buyers

The government says it will ensure that common questions are answered at the beginning of the process and before prospective buyers incur any costs, and hence avoid surprises later on.

It's hoped the questionnaire will be particularly helpful to first-time buyers with little experience of buying a home.

Which? welcomes these changes as a step in the right direction by the government.

HIP guide

Although it's unclear whether or not HIPs have made the home-buying process easier or less stressful, the HIP can help inform your decision and make the home buying process more transparent.

As a buyer, you can get a copy of the HIP free on any property you're interested in although you may be asked to pay copying and postage costs.

2 April, 2009 - Search Price Increase

From 6th of April Search Companies can no longer rely on insurance to cover missing data within a Search. At the same time, many Local Authorities have increased their prices to Search Providers meaning that HIP HIP hooray.com have been issued a price increase effective from 1st of April.

This increase has left HIP HIP hooray.com no option but to increase the price of HIPs by £35. HIP HIP hooray.com will absorb the cost of the increase until 6th April to give our agents time to amend their pricing structure. This increase has affected ALL HIP providers. This price is guaranteed until the 30th April 2009, when there will another review by the Search Companies. This review may see the price either go up or down, depending on Local Authorities who have yet to issue their new pricing.

Lesley Sorridimi, HIP HIP hooray.com

23 March, 2009 - New hips process will speed up selling process

New changes to Home Information Pack (Hip) delivery will speed the process up, it has been claimed

Previously Hips have been seen as a burden to some homeowners, although new changes that are due to take place on April 9th will hopefully change people's views, it has been claimed.

Lesley Sorridimi, from independent provider of Hips, Hiphiphooray.com said that a lack of activity currently makes it a good time to implement changes.

"What it won't do is slow down the whole buying and selling process, it will actually speed it up at the other end," she said.

The new process will mean that packs have to be ready when a property goes on the market rather than when the property is sold.

"If this was a very buoyant market where houses were flying off as soon as they came on you would be challenged. However in the current market this is a perfect time for having the information up front," she added.

As of April 6th, documents required in a Hip include an Index, Property Information Questionnaire, Energy Performance Certificate, a sale statement and evidence of title, among others.

Written by Richard Macauley

23 March, 2009 - Mortgage Solutions -
Breaking News - Agents should be talking to HIP providers: AHIPP

The Association of Home Information Pack Providers (AHIPP) has warned agents should be speaking with their home information pack (HIP) providers ahead of the changes that take place early next month.

From 6 April, vendors will be required to complete a new Property Information Questionnaire (PIQ) detailing important pre-sale information and the body has warned agents should be speaking with their pack providers and putting systems in place to ensure the new document does not slow down the marketing of any homes.

Mike Ockenden, director general of AHIPP, said its members were turning HIPs round in an average of five days. He explained: "As a result, this new legislation is unlikely to delay consumers looking to sell their home. However, with vendors playing an increasingly important role in the HIP compilation process it is essential that agents provide them with the necessary information and make them aware that their PIQ must be completed before their home can be marketed."

"With agents subject to fines under the Property Misdescriptions Act should they complete the PIQ incorrectly on behalf of their vendor, I would advise that the safest and most efficient route to getting the form completed and submitted will be to pass on this responsibility to your chosen pack provider. The majority of our members are offering a PIQ completion service to assist vendors with the form - this will not only avoid any delays, but it will mitigate any responsibility from the agent."

Ockenden, added: "There is no denying that the new legislation will put increasing pressure on the pack providing industry. However, our members are more than prepared for the changes ahead."

23 March, 2009 - By MoneyhighStreet Staff -
A HIP must be in place, not just ordered, before houses can be put up for sale

From 6th April this year, every home must have a HIP in place - not just ordered - before it can be put on the market.

According to new legislation, from 6 April all houses must have a Home Information Pack or HIP in place, not just ordered, before they can be put up for sale.

Sellers can currently commission and pay for a HIP and market their house for up to 28 days before the HIP is completed.

From 6 April, the HIP must be available at the time the property comes on the market.

In addition, vendors will have to complete a Property Information Questionnaire (PIQ) which will provide summary information about the property.

Details included in the PIQ are designed to help a buyer decide whether to view a property and indeed whether to make an offer.

PIQ information will include such as:

• flood risk details
• gas and electricity safety
• service charges
• which council tax band the house falls in
• parking arrangements
• any structural damage or alterations that have been made.

A HIP has to include a variety of documents, in addtion to the PIQ, including:

• Energy Perfomance Certicifate or Predicted Energy Assessment
• Sale statement
• Local Authority searches
• Lease, if applicable

The Local Authority searches and Lease can still follow up to 28 days later if not available from the start.

In addition to the above, new houses also require a Sustainability Certificate. According to the government website, as a result of HIPs, over a million homes now have energy ratings.

19 March, 2009 - Mortgage Introducer -
New legislation will put hips firmly in the hands of consumers - says AHIPP

From 6th April this year, every home must have a HIP in place - not just ordered - before it can be put on the market.

Vendors will also now be required to complete a new Property Information Questionnaire (PIQ) detailing important pre-sale information such as the home's council tax band, parking arrangements, utilities and any structural alterations - vital when deciding to make an offer.

Not only will the new PIQ provide buyers with further, upfront information about their possible new home, but it will significantly increase the number of consumers viewing the HIP, according to the Association of Home Information Pack Providers (AHIPP).

Mike Ockenden, Director General, AHIPP comments: "Finally we will see HIPs getting into buyers' hands. There is already evidence that HIPs have helped to speed up the conveyancing process. However, one of the key challenges we have faced as an industry is consumer apathy. While every home on the market has had a HIP since December 2007, a recent CLG report has indicated that so far, only 40% of buyers even saw the HIP for the home they eventually purchased, and this needs to change.

"HIPs provide buyers with a great deal of important information that should be taken into consideration before making an offer, from the home's energy efficiency to local search information. Following the launch of the PIQ, the level of upfront information available in the HIP will increase and we expect to see more buyers asking to see a home's HIP. The reality is that most of those selling a home will be buying a home too and if they have competed a PIQ for their own property, they are more likely to ask to see the PIQ for any properties they plan to purchase."

As vendors play an increasingly involved role in the HIP process, AHIPP warns consumers that they need to act quickly and efficiently to ensure they do not delay the marketing of their own home. Completing the required PIQ and allowing Domestic Energy Assessors (DEAs) into the property to conduct the necessary Energy Performance Certificate (EPC) as quickly as possible will be essential to ensure smooth and seamless process.

Ockenden, adds: "Our members are turning HIPs round in an average of five days. As a result, this new legislation is unlikely to delay consumers looking to sell their home. However, with vendors playing an increasingly important role in the HIP compilation process it is essential that they are provided with the necessary information and are made aware that their PIQ must be completed before their home can be marketed.

"The majority of our members are offering a PIQ completion service to assist vendors with the form. To avoid any delays, anyone planning to put their home on the market post 6th April should ensure their agent is offering access to such a service."

A sample of the PIQ can be found at: www.communities.gov.uk/documents/housing/doc/propertyinfoquestionnaire.doc

The HIP must include:

• Index
• Property Information Questionnaire (PIQ)
• Energy Performance Certificate or Predicted Energy Assessment
• Sustainability Certificate (new homes only)
• Sale Statement
• Local Authority searches (can follow in up to 28 days if not immediately available)
• Lease (as applicable - can follow in up to 28 days if not immediately available)

24 February 2009 - PCCB drive forward HIP standards

The Home Information Pack (HIP) industry has taken another stride forward in its efforts to promote high quality consumer standards, the Property Codes Compliance Board (PCCB) said today.

by PropertyRelated.co.uk, 20 Feb 2009

The PCCB has an aim of delivering quality standards across both the property search industry and in Home Information Packs. It is responsible for monitoring standards amongst firms that subscribe to the HIP and Search Codes of Practice.

The PCCB welcomed the news that the Association of Home Information Pack Providers (AHIPP) is to open up its industry code of practice to a wider range of HIP providers. AHIPP announced on Friday 13 February that it is to create a new class of Code registration to cover those companies that provide a platform from which other companies can produce high quality HIPs. The PCCB believes that the move will widen consumer choice and secure standards in a rapidly changing market place.

Commenting Richard Footitt, PCCB Chair, said: “It’s good to see the industry take the lead in responding to new developments in the market. This move will extend the coverage of the HIP Code at a time when companies are seeking imaginative and cost effective ways of providing HIPs that comply with the law. Consumers should take comfort from the assurance provided by the presence of the Code logo on a wider range of products and from the knowledge that subscribers are subject to exacting standards overseen by an independent body.”

The news comes as the PCCB reveals that it has invested additional resources in raising standards over recent months. The Board has raised the bar for new Code registrants by requiring them to submit sample HIPs and search reports ahead of formal registration. At the same time, PCCB has expanded its inspection programme in response to where it sees a clear risk to consumers and has provided clear guidance to firms on what to expect from inspections.

Richard Footit continues: “The first phase of HIPs comes to an end early in April, and the industry needs to be ready to respond to the opportunities that the new statutory framework will bring. The PCCB will continue to emphasise the benefits of commissioning HIPs from Code subscribers. And we will increasing highlight those practices that expose the public to unacceptable risks when they come to buy and sell their home."

“Tough market conditions inevitably bring pressure on the industry to review costs and to search for different solutions. The way forward though is not to cut corners and to lower standards and expectations. Consumer confidence in the industry will come from delivering quality services and products at the right price and at the right time, at the beginning of the process and until contracts are signed. Those registered with the PCCB recognise this, and our inspection programme and our work with other sectors of the industry are both geared to support them to that end.”

13 February 2009 - Every UK home to get green makeover

Government proposes "green version of Changing Rooms" for housing stock and hints small businesses could also access new financing mechanisms

James Murray, BusinessGreen, 12 Feb 2009

Every home and small business in the UK could gain access to free or low-cost measures to enhance their energy efficiency as part of a nationwide programme proposed by the government today, which promises to deliver a huge boost to providers of energy-efficient and microgeneration technologies.

Likening the proposed "Great British Refurb" to the 1960s rollout of an entirely new gas network, energy and climate change secretary Ed Miliband said the government would aim to provide whole-house energy makeovers to seven million homes by 2020 and cut carbon emissions by a third on 2006 levels by the same date.

He added that in addition to the medium-term targets, the government would seek to ensure every home has access to whole-home refurbishment services by 2030 and cut emissions from the entire UK housing stock to almost zero by 2050.

"We are proposing a universal street-by-street, house-by-house scheme with everyone offered free or low-cost advice," he said. "This cannot just be about a few million homes – we need to think bigger than that."

Central to the new plan are proposals for a new financing scheme designed to help householders overcome the high up-front costs typically associated with the installation of energy-efficient and microgeneration technologies.

Under the scheme, householders would be offered loans to cover the cost of green refurbishments with repayments being made through part of the savings on energy bills that would result.

Miliband said that importantly, repayment of the loan would effectively be linked to the property rather than the resident. "People only live in their homes for an average of nine years, [and] when we talk about up-front costs of £4,000 or £5,000 [for green refurbishments] they would not recoup the cost in saved energy bills [before moving]," he said, adding that under the scheme the next resident would be able to continue to make the repayments from the continued savings on their energy bills.

The loans are expected to be provided by a range of different entities, including energy companies, local authorities and potentially loan providers such as banks and supermarkets.

Miliband admitted that the government had not yet looked at the regulatory regime that will govern the loans, but he said that several local authorities had already expressed interest in offering green home financing schemes and predicted that private sector companies would be interested in a lending model that guarantees them a reliable revenue stream.

The proposals are now open to public consultation and Miliband said the government would also look at extending the financing scheme to small businesses to help the commercial sector deliver similar improvements to the building stock.

Speaking at the launch of the scheme, housing minister Margaret Beckett said that the refurbishment programme would be truly universal, with the social housing sector set to benefit from government subsidies that will make it a " giant demonstration project" for other sectors of the housing stock. She added that the government would also offer the same financing and incentives to landlords, and investigate the measures that may be needed to be taken to ensure costs are fairly split between tenants and landlords.

In addition to the new financing schemes, the strategy confirms plans to roll out a feed-in tariff for installations of microgeneration technologies in April 2010 and introduce a new incentive scheme for deployments of renewable heat technologies by July 2011.

It also sets out many new measures designed to underpin the rollout, including plans to provide free or low-cost energy audits to every home, set up a central body to co-ordinate how companies and local councils undertake refurbishments, and set up accreditation schemes for installers.

The proposals were broadly welcomed by green and business groups, which praised the scale of the measures and the move to overcome the high up-front costs that have hampered all previous attempts to promote energy-efficiency measures.

Colin Butfield, head of campaigns at WWF UK, praised the government's " laudable targets", adding that a focus on enhancing the energy efficiency of the building stock represented the most cost-effective way of cutting emissions. However, he warned that the government needed to provide more details on precisely how the various schemes will be funded as "a matter of urgency".

His sentiments were echoed by Paul King, chief executive of the UK Green Building Council, who said that the strategy could help to create 40,000 new jobs and showed that the government "understands the scale of the challenge and has set suitably ambitious targets".

But he also called on the Treasury "to raise its game in the upcoming Budget " and provide more immediate funding to help promote green refurbishments. " Financial incentives are needed to encourage major green refurbishments – the precedent has already been set with stamp duty rebates for zero-carbon homes," he said, adding that the government should also promise to underwrite its proposed loan scheme to encourage take-up and step up efforts to promote green refurbishment of commercial buildings.

Miliband admitted that the proposals had not yet been fully costed as the final bill would depend on the rate of take-up of the new services and financing schemes, the final level of the feed-in tariff and renewable heat incentive that is still being worked on, and the extent to which economies of scale enjoyed by expanding developers of microgeneration technologies such as heat pumps and solar panels results in cost savings.

9th December 2008 - Minister to make sure property condition is in packs

In a Ministerial statement the Housing Minister, Margaret Beckett, has today made and laid in Parliament regulations regarding the ending of the transitional arrangements and given the most positive indication yet that Home Condition Reports will be made mandatory.

She laid to rest any rumours that the Home Information Pack would be scrapped by Government and is to form a working group to make sure the condition of properties is in the packs. She said:

“Although take-up of home condition reports has been disappointing, we know that people want to know about the condition of homes before they commit to buy them. I will establish a working group to explore options for making sure that consumers have appropriate information about a property’s condition. This will build on the work carried out by the Stakeholder Panel to develop market-led models that can be delivered by existing practitioners, including Home Inspectors.”

The statement went on to say that most of the current transitional arrangements within the HIP regulations would end in April 2009. The highlights of the statement were:

• Searches remain a compulsory component of HIPs. Ted Beardsall has been asked to lead a working group to consider how they can be made simpler and more easy to use.
• Transitional insurance cover for missing search information will end on 5th April 2009.
• From 6th April 2009 HIPs must include a Property Information Questionnaire (PIQ).
• The present ‘temporary’ leasehold information provision will be made permanent from 1st January 2009. The PIQ will include additional leasehold information from 6th April 2009.
• First-day marketing will end on 5th April 2009. Estate agents will still have the 28 days provision for certain information (e.g. searches) that takes longer to obtain.
• Unfortunately the regulations do not impose a ‘drop dead’ date after which all properties on the market require a HIP.
• The Minister is setting up a working group to explore options for making sure that consumers have information about the condition of their property. The aim is “to develop market-led models that can be delivered by existing practitioners, including Home Inspectors”.

Today the OFT announced that they will be conducting a comprehensive study of home buying and selling. This will concentrate on:

• Competition on price and quality between service providers
• The prospects for new entry by, in particular, internet property retailers
• The extent to which consumer interests are protected by the existing regulatory framework

The study may also cover the relationships between estate agents, and mortgage brokers, surveyors, solicitors and other professional advisors.

2nd December 2008 - Home reports made mandatory in Scotland

The Scottish equivalent of the Home Condition Report, launched in Scotland on 1st December, has proved to be a resounding success now it is a mandatory requirement for every home being sold.

Keith Denholm MRICS of Allied Surveyors said. “Many agents were ordering the Home Reports prior to 1st December and the feedback from vendors has been extremely positive. We have around 150 Home Reports on at the moment and numbers are increasing every day. The first completion is due in the next few days.”

‘Consumers making the biggest financial decision of their lives deserve the most reliable information before they make a bid for a house’, Scottish Communities Minister Stewart Maxwell said today. Consumer groups have universally welcomed the Home Report.

Mandatory condition reports in Scotland will no doubt be monitored by Government and could be another indicator leading to them becoming mandatory in England and Wales.

Government reshuffle: Margaret Beckett returns - by James Kirkup, Telegraph

Margaret Beckett's return to the Government as housing minister is the latest twist in a career that began as a junior minister under Jim Callaghan in 1975.

Mrs Beckett, the former foreign secretary, was one of the biggest casualties when Gordon Brown entered No 10 last year.

When Mr Brown formed his first Cabinet last June, there was no place for Mrs Beckett. As a scant consolation, she was given the chairmanship of the parliamentary Intelligence and Security Committee.

After keeping a low profile on the backbenches, she recently began speaking out to defend Mr Brown from those Labour MPs and ministers who want him to step down.
Famous for her love of caravan holidays, Mrs Beckett held the title of Labour leader for three months after the death of John Smith in 1994, making her the only woman ever to lead the party.

She stood as a candidate to take the job permanently but was beaten by Tony Blair. She then served in his Cabinet in a number of posts including Environment Secretary.
On her appointment as Foreign Secretary in 2006, she was notoriously shocked and replied with the words: "Oh f***."

Mrs Beckett replaces Caroline Flint. Miss Flint becomes Europe Minister, with the right to attend Cabinet when European issues are discussed.

The move is a slight demotion for Miss Flint, who had previously attended all Cabinet meetings.

That may be a rebuke for her willingness to voice mild criticism of the direction the Government was taking under Mr Brown.

(www.telegraph.co.uk)