Archive for the ‘Home Information Packs (HIPs)’ Category
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26
Mar
2009
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:
http://www.communities.gov.uk/documents/housing/doc/propertyinfoquestion…
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)
10
Dec
2008
AHIPP welcomes clarity on HIPs
The Association of Home Information Pack Providers (AHIPP) today welcomed the clarity that the Government has provided to all parties in respect of the HIP regulations. By addressing the loose ends that were outstanding with the transitional arrangements property professionals can plan for the spring with certainty.
Mike Ockenden, Director General of AHIPP, said ‘The introduction of the Property Information Questionnaire when coupled with the expiry of the first day marketing provisions means that consumers will become much more engaged in the HIP process and be better able to judge the value that they bring to buying and selling homes. AHIPP and its members are committed to delivering the benefits of HIPs both in making buyers much better informed about the houses they are viewing and streamlining the legal process through the roll-out of ‘exchange ready’ packs.
8
May
2008
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.
29
Jan
2008
Hips reduce speculative marketing
The government’s home information pack scheme (Hip) scheme has begun to make an impact on the property market, with a fall in the number of speculative sellers in decline.
According to AA Legal Services the Hip scheme has “undoubtedly reduced speculative marketing” – potentially to the benefit of the market.
“Hips naturally focus the mind of the seller before marketing their property,” said James Molloy, product manager for AA Legal Services.
“We hope that now only those who have a genuine, considered desire to sell their property enter the market at the front end, and Hips have undoubtedly reduced speculative marketing.”
Hips were made compulsory for all properties from December 14th, completing a three-stage rollout process.
And their impact is likely to be positive in the long term, according to the AA.
“There are many commentators who will argue that speculative rather than deliberate marketing provides for fluidity of supply in the market that ‘oils the wheels’ of the property market, and that view undoubtedly has some merit.
“But it is also true such lack of commitment has contributed to, in my view, an unacceptable level of aborted transactions in the pre-Hips era,” explained Mr Molloy.
Before the scheme was introduced as many as one in three property sale chains were broken, according to the Financial Times.
This may, now, be about to change.
“It will ultimately be for economists to provide the fullest answer, but my view is that where we see a reduction in broken chains, a large contributing factor is the introduction of Hips,” concluded Mr Molloy.
24
Dec
2007
Roll-out of Hips puts properties on the market
Buyers rushed to beat the introduction of Home Information Packs (Hips) as more and more properties came onto the market before the December 14th deadline, it has been claimed.
The latest research from the National Association of Estate Agents (NAEA) has revealed that the number of properties on agents’ books during November had increased.
Members of the organisation reported an average of 77 properties for sale in November, compared with 65 in October.
However, the number of sales agreed per agent was down in November, on average nine sales were reported per agent compared with ten during October as the festive slowdown continued.
First-time buyers increased their share of the market from 9.2 per cent in October to 10.1 per cent during November as more suitable properties have come onto the market as sellers looked to conclude a deal before the full roll-out of Hips.
Stewart Lilly, NAEA president, said: “The market place over the past year has certainly been turbulent. Increasing interest rates, the global credit crunch and the phased implementation of Hips have all had an unsettling effect.
“However, it now seems that there is some light at the end of the tunnel. While it is likely that prices will remain static in 2008, the potential for further interest rate decreases will fuel consumer optimism and hopefully help to restore confidence in the market,” he added.
21
Dec
2007
Energy Performance Certificate – The Home Information Pack
According to the new law which would be introduced in April 2008, all the commercial buildings that are above 500sqm would need to get an Energy Performance Certificate. The certificate states the energy efficient of your home. The ratings are given on a scale of A to G where ‘A’ rate is given to the residence with the highest efficiency while the homes with the ‘G’ rating have the lowest efficiency.
The Energy Performance Certificate also helps you to know the impact your house may be having on the environment. The homes with good energy efficiency do not pose a threat to the environment while a residence with low energy efficiency has adverse effect on the environment. This is because the latter would emit a lot of carbon in the atmosphere.
If you are buying or selling a house then you need to get a home information pack. This home information Pack would consists of important documents and other useful information for the buyer and the seller. These Home Information Packs includes the Energy Performance Certificates, information regarding the property and other useful documents.
If you are selling a property to someone then you need to provide the new buyer with the Energy Performance Certificate. You can contact an accredited Energy Performance Certificate specialist who can analyse the property and provide you with the certificate. For this you can contact Wilbourn Associates who are the leading environment consultants in UK. They have the required accreditation and would help you in obtaining the certificate.
The Energy Performance Certificate assessors would survey the property and pay detailed attention to the factors that affect the energy efficiency. These factors would include the lightening, boiler system, air-conditioning system and other such factors. The information thus collected would be inputted in the computer. The computer would evaluate this information and give a report based on it. This report would carry information about the energy efficiency of the house. The Energy Performance Certificate advices you on making certain improvements also by which you can conserve more energy.
The Energy Performance Certificate would also carry the date, location and the construction details of the house. It would also include the information regarding the fittings used in the house.
The Energy Performance Certificate is important as it helps us to keep a check on the level of energy consumed. It will include some suggestions for the resident that can help him to control the amount of energy consumed. These suggestions and advice are also helpful as it would help you to keep a tab on your electricity bills also. Thus, if you need assistance in obtaining an Energy Performance Certificate, you can contact Wilbourn Associate at www.environmental-surveyors.com who can help you with it.
12
Dec
2007
HIPs get full roll out
Home information packs (Hips) will be required for all properties being sold in England and Wales from 14 December, the government has announced.
Since September, all properties with three or more bedrooms have required a Hip before they can be sold.
The packs have proved controversial, with many critics claiming that they have made it more difficult and expensive to sell property.
The government insists the packs are bringing benefits to consumers.
The average cost of a Hip is between £300 and £350.
Green rating
Housing Minister Yvette Cooper said the roll-out of Hips would help first-time buyers by providing them with more information.
Energy performance certificates (EPCs) will give homes an efficiency rating of A – G.
Buyers whose homes score badly will receive extra help from the new Green Homes Service announced this week by the prime minister.
“Hips and EPCs are already helping consumers to save hundreds of pounds off their fuel bills and are cutting search costs too,” said Ms Cooper.
“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,” she added.
For the Conservatives, shadow housing minister Grant Shapps criticsed the decision, saying it would make buying and selling houses “more costly and bureaucratic”.
“This latest move will dismay hard-working families, because it increases instability in an already fragile market,” he said.
“Rather than burdening people with yet more red tape, Gordon Brown should have the courage to abolish what is widely regarded as a flawed and ineffective law.”
Leasehold problems
The decision to extend Hips to all properties follows an independent review carried out by Europe Economics.
This found “no evidence of any impact on transactions or prices” beyond a “predicted” and “marginal” short-term impact on new listings.
The report also concluded that any delay to the planned roll-out due to “changing housing market conditions” would cause “greater market difficulties and uncertainties”.
But the government acknowledges the owners of leasehold properties have faced difficulties.
In some cases it has been difficult to obtain leasehold documents quickly, and “disproportionate charges” have on occasion been requested.
At the moment sellers must commission a Hip before they can put their property on the market, but have a 28-day window for it to be finalised.
The government has now said it will extend for six months the current exemption which lets leasehold documents be provided after the 28-day deadline.
It will also delay the introduction of new rules meaning a property cannot be put on the market until the Hip has been completed.
This change had been due to take effect on 1 January 2008, but will now not apply until 1 June 2008.
´Between a rock and a hard place´
The government´s decision to extend Hips has been criticised by the Royal Institution of Chartered Surveyors (Rics).
Rics and the National Association of Estate Agents (NAEA) believe the introduction of Hips has already reduced the number of larger properties on the market.
Rics housing spokesman Jeremy Leaf argues widening the scope of the scheme will have a negative effect on those people trying to get onto the property ladder.
“Rolling Hips out to one and two-bed properties could find first-time buyers caught between a rock and a hard place as accessibility to the market would go off the scale,” he said.
“If the Housing Minister genuinely wants to improve the plight of first-time buyers, she should not continue with this flawed policy,” he added.
But the extension has been welcomed by the Association of Hip Providers (AHIPP).
“The independent research by Europe Economics dispels suggestions by RICS and NAEA that Hips are having a detrimental impact on the market place,” said AHIPP deputy director
15
Oct
2007
Home information packs are forcing people to think about energy efficiency
Home information packs (HIP’s) are still not being seen by house sellers and buyers as adding any value to the sales process, however it does seem that they are forcing people to think about improving the energy efficiency of their home.
I must admit that when I was insulating our loft, it did occur to me that having far better insulation would be beneficial should we ever put the property on the market. The thought of an energy efficiency inspector shining his torch around the loft did spring to my mind when I was rolling out the rolls of Space Blanket insulation.
So this element of the HIPs scheme seems good. Not only does better energy efficiency save you money with lower heating bills, but it also reduces your carbon footprint.
It’s the other parts of the home information packs that seem to be far from useful to house buyers and certainly not to house sellers. If buyers are not interested in the contents of the reports, particularly if the local council searches are more than three months old, then it seems crazy that the house seller has to stump up to compile a number of legal documents without real purpose.
So almost three months into the HIPs scheme, they are still not considered useful, other than for the greater awareness of increasing energy efficiency.
28
Sep
2007
Green findings – Energy Performance Certificates and Home Information Packs
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.
12
Sep
2007
HIPs: Raising as many queries as they answer!
WELL, they may have been a long time coming but, during August, you have all had a chance to get used to Home Information Packs.
I doubt anybody is completely happy but it could have been far worse.
Certainly, from where I sit, matters seem to have gone fairly smoothly. As I am sure you all know, I run a consultancy service dealing with regulatory and compliance aspects generally.
When most new initiatives come along I get an increased number of calls as people who have not so far taken an interest ‘catch up’.
Estate agents tend to think and react on a very short-term basis. I think the professional motto is: “Don’t get involved unless you have to. Most things left well alone will go away. Only worry about them if they don’t.”
A smooth landing
But that is not what has happened with HIPs. I expected many last-minute calls but have actually had very few.
The main one has been whether you need to commission a HIP when taking over instructions on a property already on the market with another agent.
Assuming there is no break in marketing, and no other significant changes, the answer is ‘no’.
Overall, though more by luck than judgement, the arrangements have worked out rather favourably.
Firstly, the introduction only applied to larger homes with four bedrooms or more, and, generally speaking, the owners of these properties are likely to be more aware of the HIPs initiative and able to understand the logic in the proposals. And there is some logic in the proposals!
Secondly, this meant that only a small minority of instructions actually required HIPs, which gave you an opportunity to sort out your systems and lines of supply without any great pressure.
And thirdly, talking of pressure, at least until the end of the year, there is no unnecessary rush to obtain every HIP as quickly as possible.
Providing the client has agreed with you the contents of their HIP, and you have placed the appropriate order, there is then nothing to stop you going ahead with the marketing and producing normal sales particulars
The only other point to bear in mind is that the two colourful bar graphs from the Energy Performance Certificates (EPC) will need to be included in the sales particulars as soon as they are to hand at which point you should start assembling the Pack and getting the show on the road.