The U.K. 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:

The Association of Home Information Pack Providers (AHIPP) has welcomed today’s statement by Housing Minister, Caroline Flint.

The publication of the results of the Government’s area trials clearly show that consumers believe the new home buying and selling process is much improved with 72% of consumers being fairly or very satisfied with Home Information Packs (HIPs).

The results evidence a 10% reduction in the time taken to reach exchange of contracts reducing the stress incurred during this period of great uncertainty and allowing consumers to plan their move with greater confidence. One of the key objectives of HIPs is to speed up the process and clearly this is being achieved.

The 7% of consumers that said HIPs have helped them in making the decision whether to buy or not appears low. However the Government figures show that in many cases buyers did not see the HIP so the real figure is far higher, perhaps more like 17%. There is no doubt that this will be a vital factor in reducing transaction failure, one of the other key objectives of the implementation of HIPs.

Commenting on the results, Paul Broadhead, Deputy Director General AHIPP said: "These results show that even some months ahead of the implementation of HIPs across the country, consumers in a number of locations were already seeing the benefits of the new process. What is also clear is that property professionals did not engage fully with the process and many consumers did not see the HIP on their property. Had they done so the results would surely have been even better. Clearly where buyers were shown the packs they liked what they saw and understood the content.

I would now call on all those parties serving home buyers and sellers to work positively with HIPs, ensuring that they are shown and explained to consumers. If everyone engages fully in the process HIPs will help consumers move home with less stress, less wasted cost and greater certainty."

Consumers were satisfied with the Home Information Pack (HIP) and are starting to use energy ratings to make their homes greener, according to early testing of HIPs.

Results from research by Ipsos MORI into the HIP area trials reveal that 72 per cent of sellers were satisfied with the HIP, 79 per cent agreed that it contained everything expected, and 81 per cent understood the documents, including their energy rating, from A-G, in the Energy Performance Certificate (EPC).

Nearly one third of buyers on examining the HIP planned to carry out recommendations in the EPC to improve the energy efficiency of their home. This would equate to nearly half a million transactions per year in today's housing market where consumers took action as a result of the EPC to cut fuel bills and carbon emissions.

The research report highlights that 58 per cent of buyers would have liked the opportunity to see the HIP earlier in the process. However, agents were either not showing the packs or providing them too late to consumers to make a difference, according to the findings. Out of the 40 per cent of buyers who saw the HIP last year in the trials, half viewed it after they made an offer on their property.

The Government has already taken action to raise awareness of HIPs and to remind agents of their responsibility to make sure it is readily available so more people fully benefit from the packs. This includes a public information campaign and specific activity aimed at the industry, including more than 20,000 agents.

Consumers can only benefit if they see the pack. We know the appetite is there because nearly 60 per cent of buyers wanted to see their HIP earlier and 32 per cent planned to take action on examining the EPC - it is important agents respond to this.

Housing Minister Caroline Flint said:

“Consumers are already benefiting from the introduction of HIPs. Search costs are falling as a result of increased transparency in the market, energy ratings can help people to reduce fuel bills, and first time buyers are receiving important information about their home for free.

"I welcome the fact that buyers are starting to act on their energy ratings, which could cut a million tonnes of carbon a year as well as helping families with their fuel costs.

"However, what is clear from the trials is that more buyers wanted to see the HIP but it was not always made available to them. That's why we have taken action to increase awareness of the consumers' right to see a HIP and to remind agents of their responsibility to provide the pack.”

The Government has responded to emerging findings throughout the research period which tested around 2,600 HIPs, to help develop the packs and to ensure a smooth implementation into the market. This includes decisions to introduce a first day marketing exemption, temporary measures on leasehold information, and work with industry to make sure packs are being made available to consumers.Early monitoring shows implementation of HIPs has gone smoothly.

• The average cost of a HIP is between £300 and £350, costs which apart from the EPC are already part of the home buying and selling process.
• The majority of HIPs are being provided within 14 working days
• More than 370,000 HIPs have now been prepared.

Consumers buying new homes will additionally benefit from the mandatory inclusion of a rating against the Code for Sustainable Homes in the HIP from May 1, which will add significantly to the environmental performance information in the pack.

To help continue the smooth implementation of the packs into the market, the Government is extending the use of insurance cover where property search data is unavailable, from 31 March to 31 December 2008. The Government is currently consulting on new guidance on access and charging to help ensure a level playing field in the delivery of good quality searches at competitive prices.

Home Information Packs (HIPs) are definitely helping to speed up the homebuying process, according to the Connells Group's latest findings.

HIPs have taken a lot of flak for their part in the housing market slowdown, criticism which could be largely unfounded according the Group's executive chairman, Stephen Shipperley.
Shipperley believes that there is clear evidence to suggest the Packs are helping buyers and sellers move more quickly by identifying any potential issues early.

“There’s no doubt that having a HIP available up-front helps speed things up. Local Authority searches can sometimes take weeks, so by having the information early means the conveyancing process can begin straightaway.

"More importantly, if the buyer drops out the next buyer doesn’t have to start the process all over again, which can save months.”

One particular case dealt with by the business involved a buyer looking for a quick sale who had been encouraged to view a property on the grounds that it already had a HIP.
She said: “We wanted a quick move and having to wait for all the searches takes time. Having gone through buying a house where everything went through so smoothly I think HIPs work.
"Having a HIP and an estate agent who kept me informed made my move happen very quickly and I am very happy with how it went.”

Shipperley concluded: “Customers have been pleasantly surprised at how helpful HIPs are. We know that some estate agents and solicitors are still resisting HIPs, but we took part in early Government trials to ensure that from day one our branches, dedicated law firms, energy assessors and HIPs suppliers are working together to process transactions more quickly.”

(The Mortgage Introducer)

According to the National Association of Registered Home Inspectors (NARHI), vendors should commission a home condition report (HCR) in order to boost buyers’ confidence.

A Home Condition Report is designed to be a ‘mid-range’ survey, similar to the current Homebuyer Survey and Valuation - not as detailed as a Building Survey (sometimes known as a ‘full structural survey’) but a lot more extensive than a mortgage lender’s valuation inspection.

With many property experts predicting a fall in prices, the NARHI is claiming the disparity in the amount of buyers and sellers will make selling a property more difficult.

Consequently, any problems discovered in a property during the completion of a sale will mean that buyers will look elsewhere. Therefore, the NARHI is advising buyers to secure a HCR to avoid this.

With prior warning of any problems in their home, vendors can investigate the exact cause of any problem and source quotes to put it right before a buyer gets seriously interested say the NARHI.

As a buyer, a Home Condition Report will show you the actual condition of the property, so you can make a more informed offer. It will also help you avoid any unexpected bills once you do move.

As a seller, the report will help you market your home, since you can decide on a realistic asking price, or choose to have any work done before selling.

Advertising a HCR will be a powerful incentive to purchase, concluded the organisation.

(by Kay Murchie, Homemove – February 5th 2008)

Caroline Flint has taken over from Yvette Cooper as the Government’s new Housing Minister.

Yvette Cooper has taken up the new post of chief secretary to the Treasury. The changes come as part of a reshuffle of Government posts triggered by the resignation of work and pensions secretary Peter Hain.

British Property Federation chief executive, Liz Peace, paid tribute to the work of Ms Cooper and said we are sorry to see Yvette Cooper move on at such a crucial time for the industry. She has shown a great willingness to work with the industry and we hope the two major bills going through Parliament will not be affected. Her experience in dealing with communities will however, prove an invaluable insight for the Treasury.

Ms Flint has been Minister of State for Employment and Welfare Reform since June 2007. Commentating on Ms Flint’s new role, Liz Peace said Caroline Flint has a varied background which has taken in many areas of policy and we very much look forward to working with her.

Ms Flint, who is the MP for Don Valley, has previously been a junior minister in the Department of Health and the Home Office.

(Source: Home Move)

Home Information Packs (Hips) have helped to ensure that people putting their houses on the market are truly willing to sell and has reduced speculative marketing, according to AA Legal Services.

Since last month, every house which is put onto the market needs to have a Hip and the AA say that this will be beneficial to the market.

James Molloy, product manager for AA Legal Services, said: "Hips naturally focus the mind of the seller before marketing their property. 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."

He added that a lack of commitment by some sellers in the pre Hips era contributed to an "unacceptable level of aborted transactions".

Included in the Hips is information such as a sale statement, local searches and evidence of title.

(Source: Money Magic Mortgage Advice)

What effect has the introduction of home information packs (Hips) had on the housing market, and will their impact grow or diminish in the coming months?

The Commons select committee for communities and local government thinks Yvette Cooper, the housing minister, should have ignored the critics and included the all-important home-condition reports in the packs, as well as sticking to the original plan to introduce them for all properties last June. Had she done so, Hips would have been in place ahead of the credit crisis-induced downturn in the market.
Hips are, in theory, hard to argue against. Markets are less efficient when buyers and sellers are not in possession of the same information.

The practical problem with Hips is that, in excluding home-condition reports, they leave out the most vital information of all. The other potential benefit – economies of scale, because buyers will no longer have to pay for their own surveys – is lost.

How much, despite the criticism, have Hips helped the housing market in recent months by limiting the number of properties that have come on sale? Their introduction is a plausible explanation for at least part of the lack of supply, though it probably pales into insignificance compared with a reluctance by sellers to put their properties on the market at a time when prices have been soft. It may be that those who rushed to do so ahead of the deadlines for Hip introduction have seen their houses adding to the stock of unsold properties on agents’ books, or have had to accept price cuts. In time, Hips’ effect on supply should be minimal, though they may limit “price testing” by people who have no serious intention of selling.

(Excerpt from The Sunday Times)

Making Home Condition Reports a mandatory requirement of Home Information Packs (Hips) would be a significant improvement to the controversial documents, it has been claimed.

According to Hip company Hip Hip Hooray, making the condition report a required element would also improve other aspects of the pack, such as the Energy Performance Certificate (EPC).

Lesley Sorridimi, from the firm, revealed that such changes would make the packs much better for consumers.

She said: "Consumers will only see a really tremendous difference when the Home Condition Report is made a mandatory part of the Hip.

"The Hip is only a third of the document that it could be since the Home Condition Report has been left out of it.

"Most consumers will look at a search and the title deeds and not understand them, but when it comes to looking at the condition of a property, that is what consumers understand. This is a consumer's concern," she added.

(UK Property News)

Home information packs (HIPs) need to be made ‘exchange ready’ before they can reach their full potential, according to the Association of Home Information Pack Providers (AHIPP).

The trade body said it wanted to work with all the other industries involved in home buying and selling to develop and improve the packs to fully incorporate them into the purchase process. It also called for home condition reports to be restored as a mandatory feature of the pack.

Mike Ockenden, director general of AHIPP, said: “By bringing this information back into the pack and certain documents that are required to complete the legal process, HIPs can be made exchange ready. This means that a buyer who has an offer accepted can pass the pack to his or her lawyer who can rely on the contents and move quickly to exchange of contracts.”

All homes marketed for sale from 14 December 2007 in England and Wales will need a Home Information Pack (HIP).

The Government set out its approach and criteria for phasing the implementation of Home Information Packs (HIPs) including Energy Performance Certificates on 11 June. Sixty per cent of the market is now covered by HIPs. And the criteria for roll out to the rest of the market have now been met. We will therefore complete the phased roll out by extending coverage to the rest of the market from 14th December.
First time buyers of one and two bedroom homes will be the main beneficiaries as they will now get important information about their new home for free. Information such as searches for which they would previously have had to pay will now be included in the HIP paid for by the seller, reducing the costs of the first step onto the property ladder.

But all householders will benefit from having detailed information about the energy efficiency of their home, and measures to save on their fuel bills and cut carbon emissions
200,000 Energy Performance Certificates have been generated since the summer. The analysis of the early phase of rollout of HIPs found that the average rating for homes was an E, and we know that approximately one-fifth of all homes are likely to get an F or G rating. This means that basic measures could significantly cut both fuel bills and carbon emissions. The Energy Savings Trust have also estimated that homeowners could also save around £300 a year on fuel bills from implementing the recommendations in the Energy Performance Certificate.

We will establish a new Green Homes Service to offer those buying or selling a home with an F or G rating free or discounted help with energy efficiency measures, by linking them up with grants and loans provided by energy companies and others. Home buyers could potentially be eligible for hundreds of pounds to get help with insulation or other improvements.

As set out in the criteria of 11 June there are now sufficient energy assessors and home inspectors fully qualified and accredited to provide Energy Performance Certificates for all homes bought and sold. 5794 people are now accredited.

In addition, the government has also conducted monitoring and analysis of the implementation programme to ensure continued smooth roll out. Early monitoring shows:

HIPs are taking on average 7 to 10 days to prepare.

The majority of property, and drainage and water searches, are being delivered within 5 days

Energy Performance Certificates (EPCs) are being prepared on average within 2 to 4 days

On average, a HIP costs between £300 and £350. Most of these are not new costs, as they cover the cost of searches and other documents which have simply been transferred from buyer to seller at the beginning of the process. The Energy Performance Certificate (EPC) is of course new but provides consumers with valuable information of the costs of running their home.

Competition from HIPs is reducing the costs of average property searches. 85 local authorities have already reduced their charges by £30 on average.

The government has also commissioned and considered extensive analysis by Europe Economics on the impact of HIPs on the market. We are today publishing their independent report which includes modelling on the impact as well as analysis of the first few months of implementation. It finds no evidence of any impact on transactions or prices, although there is a predicted short term impact on new listings as sellers change the timings of their listings. It concludes that the impact on listings is short lived, and the impact on the market is marginal compared to the wider factors.

We also asked Europe Economics and Dr Peter Williams who is a member of the National Housing and Planning Advice Unit to consider whether changing housing market conditions meant we should change the approach to completing the roll out. Their conclusion was that there are strong arguments for rolling out as planned, and that further delay could cause greater difficulties and uncertainties in the market.
In the light of this evidence therefore we will tomorrow lay the commencement order to extend HIPs and EPCs to one and two bedroom properties from 14 December. In order to ensure continued smooth implementation, we are also extending the temporary provisions on first day marketing for all properties from 1 January to 1 June, providing flexibility for sellers as part of the roll out to one and two bedroom properties.

The implementation of Home Information Packs so far, and the work of the Stakeholder Panel, has also highlighted further improvements that are needed to benefit consumers.
HIPs have already led to improvements in the delivery and cost of searches, with significant reductions in the cost of searches, and in some areas, substantial reductions in the delays in producing searches. However, there are still wide variations in costs and services and we want to see further improvements for consumers. We will therefore publish guidance on access and charging in December for local authorities and personal searchers with the aim of speeding up searches and delivering a fairer deal for consumers.
We have asked Ted Beardsall, Deputy Chief Executive of the Land Registry - and member of our Home Buying and Selling Stakeholder Panel - to advise on what else could be done to improve the search process, ensuring better quality and timeliness of information, and improving value for money for consumers.

Stakeholders have also raised concerns about the costs and timeliness of leasehold information, and the impact that this will have on Home Information Packs when one and two bedroom properties are included given the higher number of leasehold properties. In the majority of cases we would expect leasehold documents to be readily available and easily provided as part of Home Information Packs. However we are aware that some leaseholders, whether in the pre-existing system or creating a HIP, can find the relevant documents difficult to obtain quickly. We know that some also face disproportionate charges to access their documents.

As leasehold information is an important part of the home buying and selling process, and is already generally paid for and provided by the seller, we continue to believe there are considerable advantages to consumers from having leasehold information early on in the Home Information Pack. However, to ensure continued smooth roll out we will phase the introduction of leasehold information in response to stakeholder concerns. We will temporarily amend the HIP regulations so that the lease document itself must be included, but other leasehold information will be introduced as a requirement in six months time. This will allow HIPs for one and two bedroom properties to bed down in advance of leasehold information being required. In the interim, we have also asked Ted Beardsall to advise us and the Home Buying Stakeholder panel on what more can be done to improve the timeliness and cost of leasehold information, alongside the work on searches.
From April 2008, we will begin to roll out EPCs for newly built homes, as well as across commercial property for sale, rent or construction. By October 2008 all public buildings will have a display certificate.

All these measures are designed to promote the interests of the consumer. We will continue to actively monitor the rollout of HIPs and energy performance certificates and the home buying and selling process to ensure we can respond where further improvements are needed. The introduction of HIPs is part of a wider programme of reforms to home buying and selling including e-conveyancing and better redress, which aims to provide consumers with a clearer, more transparent and effective service, with better value for money, benefiting all potential homebuyers and helping in tackling climate change.

Home Information Packs continue to win supporters

In a time of uncertainty for the housing market, The Association of Home Information Pack Providers (AHIPP) has now reached 100 members.

Despite Government delays, this demonstrates that the new industry is committed to the implementation of Home Information Packs (HIPs).

STL Group Plc, a leading provider of personal searches in England and Wales as well as Home Condition Reports and Energy Performance Certificates, is the latest member to join AHIPP, and believes that now is the right time to be pushing forward the campaign to promote the benefits of HIPs to consumers.

Along with Energy Performance Certificates (EPCs), HIPs aim to provide home owners with information to cut carbon emissions and reduce fuel bills.

According to a statement issued by the CLG (Communities and Local Government), the top five recommendations given by assessors for improving energy efficiency include: cavity wall insulation, changing to low energy lighting, putting thermostatic valves on radiators, loft insulation, and double glazing.

Currently only properties with three or more bedrooms are required to provide HIPs, although should it be proved that the strategy is a success, it is expected that smaller houses will also join that list.

When plans for HIPs first introduced, there was a large amount of controversy surrounding the idea. For consumers wishing to purchase or sell their property, the news came as a further complication to what is already, for some, an elaborately time consuming and stressful process. Only time will tell if the addition of HIPs to the property transaction process will make a significant difference.

However, this further addition to AHIPP. the trade body representing a wide constituency of members in conveyancing, estate agency, search providers and HIP providers, surely cements the idea that, like it or not, the implementation of HIPs will become a certainty in the future.

Paul Broadhead, Deputy Director General of AHIPP, commented: “We are thrilled to represent 100 members from all parts of the home buying and selling process. Despite Government delays in the rollout of one and two bedroom properties, pack providers continue to deliver packs in an efficient and professional manner to consumers."
Recent warnings on HIPs by The Royal Institution of Chartered Surveyors (RICS) show that not all industry figures are necessarily in favour of the idea. However, in response to RICS, AHIPP stated:

“The latest HIP allegations from RICS appear to have disregarded the many benefits that the packs will offer first time buyers – the most vulnerable of buying groups. With more information upfront and the costs incurred in gathering and providing information such as searches transferred to the seller, first time buyers will find their first step onto the housing ladder a more affordable and more informed one.”

AHIPP URGES GOVERNMENT TO COMPLETE ROLL OUT OF HIPS FOR REMAINING HOUSING STOCK

Since Home Information Packs (HIPs) were implemented for all properties in England and Wales with three bedrooms or more two weeks' ago, HIPs have been delivered to consumers efficiently and professionally by the new HIP provider industry. Now the Association of Home Information Pack Providers (AHIPP) urges the Housing Minister, Yvette Cooper, to lay down the commencement order to extend the rollout to all remaining properties.

Mike Ockenden, Director General of AHIPP, said: "I call upon the Government to extend the rollout to the remainder of the housing stock. There are now over 5,000 fully accredited Domestic Energy Assessors (DEAs) ready to provide Energy Performance Certificates (EPCs), a substantially higher number than the Government’s target of 3,000 for the full national roll out of HIPs.

"For HIPs to do their job properly they need to be rolled out to all properties up and down chains of transactions. Not only will this speed up home buying and selling for all consumers, but it is fair for all. Presently anyone selling a home with three or more bedrooms and buying a one or two bedroom home is penalised by having to pay for the information in a HIP on the sale and also on the purchase. Clearly this situation should be rectified as soon as possible.

"Further, HIPs are particularly beneficial to first time buyers, saving them money on their first purchase, making it less stressful and removing one of the barriers to home ownership. People entering the property ladder for the first time are more likely to buy a one or two bedroom home so it is important to roll out HIPs to these properties as soon as possible.

"We have seen that the roll out of HIPs to three and four bedroom homes has gone very well and I now strongly urge Government to extend the implementation to all homes put on the market, so that HIPs can really start to do the job they have been brought in to do. It is time for all home buyers and sellers to benefit from this vital reform."

TOWN halls have been ordered to hit house sellers with £200 fines if they fail to use Home Information Packs.

It means local councils could now rake in fortunes from home owners who disregard the rules.

The fines have been given the go-ahead by Housing Minister Yvette Cooper, empowering trading standards officers to impose the cash penalties.

They can hit anyone who markets a home with three or four bedrooms without a Home Information Pack.

Last night there was widespread condemnation of the move which is seen as providing a potential cash bonanza for local councils. If only one in five of the two million homes sold each year fall foul of the rules, town  halls would make £80million.

Grant Shapps, Shadow Housing Minister, said HIPs evasion would be deemed an extra source of revenue like parking fines and speed camera penalties.

He said: “It is the height of recklessness for Labour to impose even higher costs on home owners by forcing HIPs onto them, then pressuring councils into levying £200 fines.

“This flawed scheme was always about giving the Government more money.

“All the VAT on the packs goes to the Treasury and if councils are raising millions from fines, the Government will soon find a way to cut their central grant.

“Are trading standards officers going to start knocking on doors if there’s a For Sale board outside?”

“Ministers are playing Russian roulette with the housing market by making such a reckless intervention.”

Bernard Clarke, of the Council of Mortgage Lenders, said: “This move places an extra burden on home owners.

“We are hoping that councils will be consistent. It will not be fair if sellers in one area are treated differently from those in another.”

The £700 HIPs have been controversial from the start.

They were supposed to make it easier to buy and sell a home because the seller prepares much of the information for the buyer.

Ministers hoped that by having surveys and searches prepared in advance, the number of failed purchases would drop and sales could be completed more quickly.

But it has been criticised by the property industry and ministers have been forced into embarrassing climbdowns. A local government spokesman said last night: “People are complying with HIPs’ rules – high compliance means a low level of fines.”

Trading Standards Institute chief executive Ron Gainsford said: “Our business is about compliance not prosecution. Our officers will operate with a light touch.”

The government is expected to extend its controversial home information packs (Hips) to the entire housing market by the middle of next month.

Building has learned that officials at the communities department have been sounding out providers of the packs on when the initiative can be rolled out to the entire market.

The providers claim they will be ready to compile Hips for every home by the middle of October.

Mike Ockenden, director-general of the Association of Home Information Pack Providers, said there were now 4,000 trained domestic energy assessors to prepare energy performance certificates.

Hips came into force for three-bed homes at the start of this week. But the pack’s opponents claim the government has not assessed their potential impact.

The RICS published figures this week showing that the number of four-bedroom homes that came on to the market in August, when the packs were introduced, fell by half compared to July.

The National Association of Estate Agents also reported a 63% drop in the number of four-bed properties on their books.

John Slaughter, external affairs director at the Home Builders Federation, said Hips could contribute to a wider downturn.

But Ockenden said: “The shortfall could be explained by an awful lot of other factors, like the fact that the people who live in four-bedroom properties tend to go on holiday in August.”

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 tot hree 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.

Notes to Editors
1. EPCs and HIPs were introduced for four bedroom homes and above on August 1, and are today being rolled out to three bedroom homes. A further announcement on rolling out the packs to the rest of the market will be made in due course. Our key criteria will be ensuring a smooth implementation and that the necessary energy assessors, both nationally and regionally, are in place.

Two big mortgage lenders, HSBC and Barclays, have denied that they are unhappy with the recently introduced Home Information Packs (HIPs).

The packs require sellers to provide information such as planning permission and copies of title deeds to buyers.

The Daily Mail had claimed that the banks would ask buyers to carry out extra searches as they did not trust the information in the HIPs. However, the lenders said they just wanted them vetted by a solicitor.

No worries?

The government denied there was any problem with the reliability of personal searches of local authority information, as opposed to information supplied directly by the council in response to a solicitor's request.

"The HIPs legislation brought in a stringent code of practice for personal search companies," said a spokesman for the Communities and Local Government department (DCLG).
"They now have to have insurance cover for the searches they provide."

A spokesman for HIP providers said the lenders had nothing to worry about.

"They have no need to be concerned at all," said Paul Broadhead of the Association of Home Information Pack Providers (AHIPP).

"50% of all local authority searches are already done by personal search organisations."

He added: "They get exactly the same information as a solicitor would and mortgage lenders accept them already."

A spokesman for the Council of Mortgage Lenders (CML) added: "Lenders have agreed that as long as the property search organisation is a member of the Council of Property Search Organisations then the lenders will accept that search."

Supportive

A spokesman for HSBC said there was nothing new about his bank's policy and stressed that the bank was supportive of the introduction of HIPs.

"But we have never accepted private searches rather than those from a solicitor," he said."We just need to be sure that the customer's solicitor will sign off the search so that it is covered by their personal indemnity insurance," he added.

A spokeswoman for Barclays agreed.

"We will accept a personal search, at the conveyancer's risk.

"We are not demanding that house buyers spend more money on more searches," she said.

Barclays currently has 5% of the new mortgage market while HSBC has 4%.

Law society

Despite these assurances, the Law Society renewed its warnings about HIPs that contain personal searches of council information.
It said solicitors, when acting for home buyers, should always point out to their clients that official searches provided a higher level of protection than personal searches, if any of the information in them turned out to be wrong.

"If you are buying a house for half-a-million pounds and you are mortgaging yourself to the hilt for the next 25 years, you can either have a search carried out by the council staff, on which you can rely, or one provided by someone you don't know - the search company," said Paul Marsh, vice-president of the Law Society.
"There is a degree of risk between the two but the buyer's solicitor has a search thrust on them now," he added.
The Law Society said it would like lenders to specify exactly which personal search companies they would be happy with, to remove a lawyer's current responsibility to vouch for a search company's work.

Conveyancing

The local authority search has been a compulsory feature of the conveyancing process since 1925.
It involves a buyer, or their solicitor or other representative, asking a set of standard questions about a property, covering local authority plans for the street or area, and any planning permission granted for the building.

This should also show up any restrictions on the way the property can be used, for instance the existence of smoke control orders, conservation areas, tree preservation orders, and any financial charges where the council could recover money owed to it.

Additional information can also be gleaned at the same time about neighbouring properties.

The aim is to make sure that the buyer does not get a nasty surprise once they have bought the house or flat.

Next stage for Home Information Packs and Energy Performance Certificates announced

The Government has today announced that Home Information Packs (HIPs) and Energy Performance Certificates (EPCs) will be rolled out to three bedroom properties from 10 September 2007.

HIPs and EPCs are being introduced on a phased basis to ensure a smooth transition in the housing market, and to begin the process of transforming the home buying and selling process in the interests of consumers and the environment at the earliest opportunity.

Following the introduction of the packs for homes with four bedrooms and above on 1 August 2007, the Government has today confirmed there will be enough energy assessors, nationally and regionally, to roll out to three bedroom homes next month, having taken into account the operation of HIPs in the market.

HIPs and EPCs will give house buyers energy ratings for homes for the first time, from A to G - similar to consumer friendly ratings for fridges, helping to lower fuel bills and reduce carbon emissions. The packs will also help to cut costs for consumers by increasing transparency and competition in the home buying and selling process.

A further announcement on rolling out HIPs and EPCs to other properties will be made in due course. Our key criteria will be ensuring a smooth implementation and that the necessary energy assessors, both nationally and regionally, are in place.

Communities Minister Baroness Andrews said:
“We are now ready to start rolling out HIPs and EPCs to the next part of the market as promised, and improve a home buying and selling process which currently is not working for consumers or the environment.”

“HIPs and EPCs can help families to save hundreds of pounds off their fuel bills, and cut a million tonnes of carbon a year. They also have the potential to reduce the millions of pounds wasted by consumers when buying and selling a home, by increasing transparency and competition in a process that hasn’t changed for a generation."
Measures recommended in the EPC could save the average consumer £300 a year off their fuel bills, according to the Energy Saving Trust. Typical 'green grants' of £100 to £300 for energy saving improvements like loft insulation are available for many home owners.

A new system to make it easier for home owners to access these grants from energy suppliers was launched earlier this month. Energy suppliers are providing immediate access and information about green grants and offers to home buyers when they sign up to an energy contract. A new portal on the Energy Saving Trust’s website also allows consumers to tap in their postcode to find out offers available.

A snapshot of leading HIP providers shows packs are taking five days on average to produce. Many major estate agent chains are offering HIPs as part of their ordinary fees. Others are charging in the region of £300 to £350 plus VAT on an upfront or deferred basis - £200 to £250 of which is already paid for in the current system.

CALL FOR HIPS TO INCLUDE £200 DOCUMENT

Calls are growing for home condition reports (HCR) to be made a mandatory part of Home information packs (Hips).

The Association of Home Information Pack Providers (AHIPP) believes that by making the HCR optional, it is unlikely that many people will choose to get one.

"Our lobby to government is first of all home condition reports are voluntary in the packs and they intend to push that. I don't see a lot of people taking them up voluntarily I have to say, and we do believe they are going to have to be made mandatory again in due course," Mike Ockenden, director general of Ahipp told BBC Radio Five Live's `Wake
Up to Money' programme.

"So [while] at the present time we only have the energy performance certificate in the pack; we want to see the home condition report back.

"That will reduce the chances of transactions falling through and reduce that period of uncertainty," he added.

A spokesperson for Ahipp recently said that home sellers would be unhappy at having to include a HCR in their packs as it would set them back around £200.

Hips were launched for properties with four or more bedrooms on August 1st with The Hip Exchange reporting that the average Hip is costing slightly more than the government had first predicted.

The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Andrews):

Following the motion to revoke the Home Information Pack (No. 2) Regulations 2007, the Government are placing their response on record.

A number of debates have taken place over the past year about home information packs (HIPs). The Merits Committee of the House has reported twice on HIPs regulations. Throughout the parliamentary process, the Government have listened carefully to the arguments put forward and have adapted our plans for the introduction of HIPs in response to many of the comments made. We have also engaged in long and constructive dialogue with key stakeholders from the industry.

In response to the arguments put forward by Baroness Hanham, Baroness Scott, and Earl Caithness, the Government have made it clear that we remain committed to HIPs, linked with energy performance certificates (EPCs), as a first step in reforming and improving the home-buying process, which is currently wasteful, stressful and opaque. We believe that the process needs to be more transparent and predictable, particularly for first-time buyers and that all consumers need to be able to rely on having key information before they commit to home purchase rather than later in the process. These arguments were supported in debate by Lord Elystan-Morgan, Lord Graham of Edmonton and Lord Redesdale, who also drew attention to the importance of energy performance certificates.

We also believe that the urgency of climate change and the need for consumers to have more information about reducing energy use and energy bills means that introducing EPCs as part of the HIP will achieve this swiftly and reliably.

In recent months and since the regulations were withdrawn on 22 May, everything has been done to ensure a smooth introduction of HIPs and EPCs on 1 August. Our implementation plans, announced on 11 June, have been followed through. There are enough inspectors; the infrastructure is ready; the industry is prepared; and consumers are anticipating the change. There is no reason to delay any further. We will therefore introduce HIPs for the sale of homes with four or more bedrooms on 1 August, and we will roll them out for the remainder of the market as announced. We are confident that they will act as a catalyst for reform of the wider home buying and selling process and make a considerable contribution to cutting carbon emissions. We will, of course, continue to work with stakeholders to make further progress on those agendas.

IS THIS THE FINAL COUNTDOWN?

The clock is ticking once again as we near the 1 August launch of Home Information Packs, two months after they were initially supposed to go live

According to the Association of Home Information Pack Providers (AHIPP), only one more fully trained energy assessor is needed in order for the Government to meet its target of having 2,000 accredited assessors ready to go out to work on the date the packs are launched.

Currently the UK boasts 1,321 fully accredited Domestic Energy Assessors (DEAs) and 678 fully registered Home Inspectors who can legally produce the Energy Performance Certificated (EPCs) which comprise a compulsory part of each Home Information Pack.

Now this hurdle has almost been reached, the AHIPP are urging Housing Minister Yvette Cooper to lay down the commencement order which will extend mandatory HIPs to three bedroomed homes as well.

“I would urge the Minister to lay down the commencement order next week to allow HIPs for three bedroom properties to go live on 1 September – exactly one month after HIPs will be mandatory for homes with four bedrooms or more. At the present rate of progress the remainder of the housing stock should follow soon after.”

BROWN SIGNIFIES CONTINUITY FOR HIPS

The announcement today that Yvette Cooper, Minister for Housing and Planning will continue with her role, but taking on a much higher profile and attending cabinet meetings when required, has been heralded as great news for the future of Home Information Packs (HIPs), by the industry.

The Association of Home Information Pack Providers (AHIPP) and its members have declared their delight in Brown’s latest decision, which will see Ms Cooper continue to preside over the introduction of HIPs, ensuring the future success of this vital reform.

Mike Ockenden, Director General, AHIPP said: “The Prime Minister’s decision, which will see Yvette Cooper remain in-charge of housing and as a result, the implementation of HIPs should be warmly welcomed by consumers, the environment and the industry. The continuity of keeping Ms Cooper in this role sends out a positive message for the future of HIPs and it is only right that Gordon Brown has seen fit to elevate her role as Housing Minister and with it, the prominence of future housing and planning issues on the Government’s agenda.

“Homebuyers and sellers across England and Wales should take this as a signal of reassurance that the benefits of HIPs will soon be delivered, commencing on 1st August with their introduction for properties with four bedrooms or more, closely followed by the phased implementation for all, smaller dwellings.

“Today is a very positive day for the HIPs industry and we now look forward to working alongside all of the relevant industry members to ensure the smooth implementation of HIPs across England and Wales, for the benefit of long suffering consumer.”

MAJORITY OF PUBLIC SAY YES TO HIPS DESPITE GOVERNMENT DOUBT

Despite the announcement by the Government to delay the introduction of Home Information Packs (HIPs) until 1st August 2007, when they will become compulsory for all houses with four or more bedrooms in the UK, new research from Hyder Consulting reveals that the majority of UK adults are in favour of the introduction of HIPs, with 51% claiming that a property's energy efficiency rating is a key consideration when purchasing a new home.

Support for HIPS appears strong across the entire country with people in the East Midlands most in favour of their introduction with 60% stating that a property's energy efficiency rating is important to them, whilst those in Scotland are the least supportive with just under a half (45%) believing the same.

The findings of the research show that more and more Britons are becoming environmentally aware and are attempting to embrace the idea of 'green living' with only 14% saying that they would not take the energy efficiency rating into consideration when looking at a house or flat.

Indeed, over three quarters of UK adults (78%) say that running costs and energy efficiency are important when choosing one property over another, with just 3% saying that it is not important at all.

Chris Evans, Head of Environmental Solutions at Hyder Consulting commented: "The research shows that the choice to make our homes more energy efficient will no longer be made on ethical grounds alone, but financial as well. Clearly, property buyers are increasingly taking a property's carbon footprint into account. The level of energy efficiency within a property may be used as a bargaining tool by both parties in negotiations.

"Once they have been fully introduced HIPs may prove to be a key turning point in the push to make homes more sustainable. However we must be aware that a sustainable home and lifestyle does not stop with HIPs. It is important that we all continue to do everything we can from minimising our carbon footprint to recycling in order to help save our planet."

ENERGY PERFORMANCE CERTIFICATES AND HOME INFORMATION PACKS

The Government is today announcing that we will be implementing Energy Performance Certificates (EPCs) and Home Information Packs (HIPs) from 1 August instead of 1 June. The Government has also reached an agreement with the Royal Institution of Chartered Surveyors (RICS) on their judicial review of Energy Performance Certificates.

The Judge, considering the application for Judicial Review by RICS, had issued an Order preventing EPC's from being included in HIPs from 1 June until a court had fully considered the RICs application.

We did not consider it to be acceptable or practical to delay the introduction of EPCs in this way.

We have always made clear greater transparency in the housing market and tackling climate change goes hand in hand. In addition, we have created a new energy assessor workforce - the majority of whom expect to start work in June.

We have therefore been in negotiation with RICS in order to avoid a lengthy delay as a result of the legal process. The Government can today announce an agreement has been reached.

The Government will revise regulations and implement the following changes -

- HIPs and EPCs to start on August 1, implemented on a phased basis. From August 1 packs - including energy performance certificates - will be required for the sale of four bedroom properties and larger. These are the properties which are the most energy inefficient. We will phase in packs for smaller properties as sufficient energy assessors become ready to start work.

- Until the end of the year, we will allow people to market their properties as soon as they have commissioned a pack - rather than making them wait until they have received them.

- As a temporary measure, we will allow EPCs to be up to twelve months old when the property is put up for sale and will consult further on the long-term arrangements for the age of EPCs.

- We will also be inviting councils and registered social landlords to work with us to introduce EPCs on a voluntary basis in social housing, for example at the time of stock transfers. The Government will therefore lead the way in efforts to tackle climate change, whilst providing work for energy assessors in advance of the full implementation of HIPs and EPCs.

Towards the end of the year we will assess the implementation of HIPs and consider what further steps might be needed to maximise the reduction in carbon emissions and drive forward the reform of home buying and selling.

This assessment will be informed by the operation of the market from 1 August; by the results of the area trials; and by a further consultation on the next steps in implementing HIPs and EPCs, which we will begin in the summer.

CONSERVATIVES FAIL TO ABOLISH HOME INFORMATION PACKS

The Conservatives have failed in their bid to force the government to overturn plans for a controversial home information pack (Hip), with MPs voting to retain the legislation.

A motion to have the packs scrapped ahead of their proposed introduction on June 1 was defated by 306 to 234, giving the government a majority of 72 over the Tories.

The defeat followed a 90-minute debate about the plans, which saw the Conservative shadow housing minister, Michael Gove, brand the packs as a "folly" and claim that VAT on them would lead to a "significant tax take" for the Treasury.The introduction of an energy performance certificate (EPC) meant that like white goods, properties would be rated to help people see where they could save energy and money.

Housing minister, Yvette Cooper, argued that the plans were "sensible and practical".

"How can people be expected to make the improvements to their homes if they do not have the information about what will make a difference?," she said.

"It makes it possible for the first time for people to think about making efficiency improvements to their homes."

Ms Cooper said the EPCs could help cut carbon emissions by almost a million tonnes a year, as well as reduce fuel bills.

The rest of the Hip merely contains legal and search documents already required when buying and selling a home, she argued, but are instead gathered at the start of the process to speed it up and improve competition.

She insisted the government had made changes to the packs in response to consultation and trials, and pledged: "We will continue to work with stakeholders across the industry on the implementation of them."

Green groups welcomed the outcome of the vote.

Friends of the Earth's green homes campaigner, Dave Timms, said: "EPCs, which are supported by all parties, will help homeowners tackle climate change and save money. It would have been a tragedy had they become a casualty of the row over home information packs.

"UK homes are responsible for over a quarter of UK carbon dioxide emissions. It is crucial that this vital measure is not delayed. We hope the Lords will also give their backing when they vote next week."

Earlier today, Mr Gove said the new regulations would increase the cost of moving and discourage potential sellers from advertising their homes.

"Home information packs will be the biggest, jarring, intervention in the housing market since Nigel Lawson abolished mortgage interest tax relief," said Mr Gove.

"History teaches us that you play politics with people's homes at your peril. But that is just what Labour ministers are doing."

Yesterday, the Royal Institution of Chartered Surveyors said it planned to go to court over the plans for the pack, as ministers had failed to consult properly prior to bringing in the new regulations.

The initial hearing will take place next week, days ahead of the pack's introduction on June 1.

HIPS BOOSTED BY CONSERVATIVE DEFEAT

The defeat of a Conservative Party parliamentary motion to annul legislation introducing Home Information Packs has been welcomed by the housing industry.

Mike Ockenden, director general of the Association of Home Information Pack Providers (AHIPP), says the defeat of the Conservatives motion demonstrates the government’s commitment to improving the house buying and selling process.

He says: “Industry is ready to deliver HIPs and the benefits the packs will offer to both consumers and the environment. There will be enough energy assessors – our latest survey has identified over 3,500 home inspectors and Domestic Energy Assessors (DEAs) will be ready to produce Energy Performance Certificates (EPS) as of June this year.”

And Stephen Callaghan, director of DEA provider energy-assessors.com, says the vote in the House of Commons will give consumers, the industry and those training to provide Energy Performance Certificates full confidence to proceed towards implementation as legislated.

He adds: “Any further attempts to scupper the most important reform of the house-buying and selling process for decades will be unnecessary and only add to the continued scare mongering and subsequent confusion that has been rife during the last few weeks.”

However, the Royal Institution for Chartered Surveyors (RICS) seemed to be disappointed in the result, particularly as it confirmed its intention to proceed with a Judicial Review against the Department for Communities and Local Government (DCLG).

Jeremy Leaf, spokesman for RICS, says: “Today's debate highlights the need for immediate government action. The introduction of HIPs will have few benefits to the consumer and adversely affect the housing market and the wider economy.”

“The government should be brave and postpone their flawed plans for home buying reform. By preventing this potentially damaging and chaotic policy Gordon Brown could give substance to his claim to lead a listening Government.

FULL SURVEYS WILL ULTIMATELY COME INTO FORCE

Ruth Kelly, Secretary of State for Communities and Local Government, has said in a Report published by MPs on 19th March that Home Condition Reports will ultimately become compulsory.

In an address to the Communities and Local Government Committee, Kelly stated: "I am convinced that the market is changing in such a way that consumers will want this, buyers will want this, sellers will want a Home Condition Report and, in fact, it will be in the interest of Estate Agents ultimately as well."

EARLY FEEDBACK FROM ROLL OUT PROVES CONSUMER DEMAND FOR HIPS

Feedback from the early roll out of Home Information Packs (HIPs) has indicated that consumers are welcoming HIPs, with many packs commissioned within the first month of the launch.

The early roll out in six locations across the UK, launched by the Association of Home Information Pack Providers (AHIPP) in November and supported by Government (who chose to follow AHIPP and carry out their area trials in the same six areas) was greeted with a positive response from local consumers. Many have since asked for a HIP on their home, with the majority also requesting the voluntary Home Condition Report (HCR).

Mr Mole of North Shields, who has recently requested his pack through estate agent Fresh Property Centre said: "I have opted for a full pack, with the Home Condition Report. I am keen for a quick sale and I believe that by having all of the information about my property upfront it will save time further down the line, as the buyer will be able to make a more informed decision from the offset."

The launch was also welcomed by many forward thinking agents who are now facing up to the reality that HIPs will happen and are keen to get processes in place to ensure they are ready, ahead of the mandatory introduction next June.

Kit Johnson, Director of Kit Johnson Residential in Bath, who is taking part in the roll out said: "We are delighted to be offering our consumers an opportunity to sample the packs ahead of their mandatory introduction next June. We hope it will make the whole house buying and selling process more transparent - helping to speed up transactions which is what the consumer wants."

Paul Broadhead, Deputy Director General for AHIPP added: "We have seen many consumers now enquiring about the packs with their local estate agent. In fact, feedback from our members has suggested that over 700 packs have already been commissioned since November, over 60% of which have included an HCR, (and in some locations this rises to over 90%).

"Estate agents play a key role in informing the public and explaining the various benefits and processes involved in purchasing a pack and I am pleased to see a rapidly increasing number of businesses becoming more proactive.

"The reality is HIPs are happening and we have seen clear indications that more businesses are now taking steps to prepare, with AHIPP membership continuing to grow, up a further 10% since the roll was first announced in August."

The AHIPP roll out of packs in the next 12 locations is likely to fuel further demand with more consumers able to benefit from a pack ahead of the June deadline.

The Government is resolute on HIPS. But too few energy inspectors may just be one of its problems.

The mountain of paperwork involved in selling a home will grow taller this year. From June 1 – a date now (at the time of writing) just 97 working days away – anyone putting a property on the market must provide a home information pack (HIP).

After an embarrassing government climbdown, the home condition report is no longer an obligatory part of this controversial dossier. But an energy performance certificate (EPC) will; be required. This will score a property’s use of fossil fuels on a scale from A to G: an A grade indicates a home which is the epitome of sustainability; a G grade means it is an environmental menace.

The new awareness of the necessity to be green and of higher utility bills makes the EPC a very useful document for the househunter. But there is speculation that the dawn of a more eco-conscious Britain may be delayed, since there may not be enough trained energy inspectors by June 1