CONFUSION about home information packs (Hips) has overshadowed the property
market for weeks – and it has only been worsened by the sudden postponement
of the scheme and revised plans for its introduction. Energy inspectors, Hip
providers, estate agents and consumers have been left guessing by Ruth
Kelly’s statement to MPs on Tuesday; the property world will now seek urgent
talks with the Department for Communities and Local Government to ascertain
the final shape of Hips mark 3.
Have Hips been axed? No, compulsory Hips will be introduced on August 1
– but will now be phased in, starting with houses with four or more
bedrooms. This accounts for 17 per cent of owner-occupied homes, the Council
of Mortgage Lenders says.
Why only larger homes? The Government says that these homes have the
greatest potential to benefit from energy efficiency improvements, as
spelled out in the energy performance certificate around which the pack has
been built. It is also a relatively stable part of the market: many owners
stay put once they have traded up enough times to acquire a house of this
size.
The definition may, however, prove too vague. Malcolm York, a director of the
technology firm ConveyanceLink, said: “I’m sure homeowners round the country
will now be thinking of turning their four-bedroom house into a
three-bedroom property with a study – and it’s impossible to see how the
Government can police this.” The Royal Institute of Chartered Surveyors says
that there is no relevant legal definition of a bedroom.
When will other homeowners be required to provide home information packs?
This is unclear. No deadline has been set for the expansion of the packs to
cover all homes, though the Government says it will act rapidly once enough
energy inspectors are trained – but Hip providers fear that, without a firm
commitment from Government, few inspectors will be willing to pay to
complete training.
The Government has undertaken to review the introduction later this year –
good news for those concerned that final analysis of the Hips trials has
still not be made available – and it may be that the scheme will be altered
markedly or, some observers think, abandoned. Phil Spencer, the television
presenter and chief executive of Garrington Home Finders, says: “There is a
hope, come August 1, that Gordon Brown might use it as a chance to make an
early and popular decision – to scrap the packs.”
Will Hips remains the same? After the removal last year of the
compulsory home condition report, Hips are to include an energy performance
certificate, local searches, evidence of title and details of leasehold.
With the Government committed to consultation, changes to the pack are a
possibility.
Two temporary concessions have been made. There will be no obligation,
however, to start with a complete pack: owners can avoid delays by going to
market once they have commissioned a pack. Energy performance certificates
will also be valid for for a year.
Are environmental improvements now off the agenda for homeowners? No.
The Government says it remains committed to energy ratings on homes – and
has EU obligations to enforce the ratings by 2009. Pressure to improve the
performance of new-build properties will remain strong. Ministers want all
new homes to be zero-carbon by 2016 – which will increase the pressure on
owners of existing buildings to reduce their impact on the environment.
Homes account for 27 per cent of UK carbon emissions.
How will all this affect the housing market? Estate agents are pleased
that the introducton has been delayed, but many hoped for a longer reprieve.
Lucian Cook, of Savills, predicts disruption, saying that introduction
should have been delayed until after the full impact of recent interest rate
rises – and possible future ones – had been absorbed by the market.
LOSSLEADER
Martin Hughes, left, and his company, NowSurvey, have spent several hundred
thousand pounds launching an energy inspector service – and are among those
that the Association of Home Information Pack Providers estimates have
invested about £200 million preparing for the scheme. But Mr Hughes, who
bought computers, software and invested in training, now says that the
future is utterly uncertain. Few potential inspectors will want to complete
training without clear direction from the Government, he says. “And how many
four-bedroom houses will be on the market in August? I would say not many.”
His biggest concern is for the 60 people to whom he had promised jobs. Many,
trained at a cost of £3,000 each (or up to £10,000 for fully fledged home
inspectors), have already resigned from existing jobs. “Are we going to pay
them on June 1? That is a decision we have to make.”
"im a first time buyer who cant afford my first home. i work hard in this country!!! "
Work harder then
2 evening shifts and an afternoon in a pub pays £60 after tax, thats more than half the interest on my mortagage.
Rent out a room to a lodger, thats another £4500, those two will pay my mortgage and capital.
Or do you mean, I cant buy the property I want in the area of my choosing for 5% of my income.
Dominic, Manchester, UK
all i want is the housin market to crash, im a first time buyer who cant afford my first home. i work hard in this country!!!
bring on the crash!!!
sean gilbert, grantham, lincolnshire,uk