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HIPS Suspended & EPC Regulations Revised with Immediate Effect

This morning, CLG have released a statement on their website confirming that the Home Information Pack (HIP) is to be suspended with effect from 21st May 2010 (tomorrow). In addition to this, CLG have revised the regulations to ensure that an EPC will be required at the commencement of the marketing of a property and a new duty has been introduced on both the seller and agent to ensure that the EPC has been commissioned.

 

The full statement can be read at http://www.communities.gov.uk/news/newsroom/1591783 and the main points are summarised below:

 

Communities Secretary of State Eric Pickles and Housing Minister Grant Shapps have today laid an order suspending HIPs with immediate effect, pending primary legislation for a permanent abolition. The Secretary of State has taken this swift action in order to avoid uncertainty and prevent a slump in an already fragile housing market. Today's announcement sends a clear message of encouragement to people thinking of selling their home that they can put it on the market with less cost and hassle.

 

Mr Pickles and Mr Shapps also said that the Government is determined to help people reduce their energy bills, improve our energy security and tackle climate change by increasing the energy efficiency of homes. Sellers will therefore still be required to commission, but won't need to have received, an EPC before marketing their property and the Government will consider how the EPC can play its part in the new drive for a low carbon and eco-friendly economy.

 

Amended Energy Performance of (Certificates and Inspections) Buildings Regulations 2010

Sellers and estate agents are no longer required to have or provide copies of HIPs with effect from 21st May 2010. In order to ensure that people selling their homes continue to make an Energy Performance Certificate available to prospective buyers, CLG have also laid before Parliament the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) (Amendment) Regulations 2010 which introduces a number of new legal requirements on both sellers and agents including:

 

• a new duty on the seller to secure that an Energy Performance Certificate (EPC) has been 'commissioned' before marketing of the property commences where no such certificate is already available

• an EPC has been 'commissioned' when a Domestic Energy Assessor has been instructed to prepare the EPC and the EPC has either been paid for or has given a clear undertaking to pay for it

• a new duty on the person acting on behalf of the seller, e.g. estate agents, to be satisfied that an EPC has been commissioned before commencing marketing

• a new duty on both the seller and a person acting on their behalf to make reasonable efforts to secure an EPC within 28 days

• all of the new duties carry fixed penalty fines where the seller and agent fail in their duties conferred on them by the new regulations

 

Impact on the Energy Assessment Industry

Here at Elmhurst we recognise that this is a significant change to the structure of our industry and will undoubtedly put into question the viability of many companies and individual DEAs currently reliant on providing Home Information Packs. However, we also welcome the Government's comment on the importance of EPCs and their simultaneous amendment of the EPC regulations. These regulations should ensure that EPC provision at the point of marketing a home for sale will continue but is likely to mean that EPC instructions in the future are most likely to be received via estate agents or directly from the seller. We are also aware that some Panel companies have anticipated the demise of HIPS and already secured large portions of their work directly from estate agents, which for many DEAs will mean that they may continue to receive work from their current sources. At Elmhurst we will endeavour to keep all our customers informed of events as they unfold during this uncertain transitional period.

 

In the longer term these changes may indeed help the energy assessment industry by increasing the profile of the EPC with consumers, and thereby the energy assessor, by virtue of the EPC being a stand-alone document. At Elmhurst, we are also actively lobbying government to ensure that the EPC is an integral part of any future ‘green deal’ policy focused on implementing the energy efficiency savings measures in buildings. We will also continue lobbying for the enforcement of improved EPC quality standards to ensure the sustainability of the energy assessment industry in the long term.

 

Should you have any queries or need assistance, please contact our Energy Assessor Technical Support Team via the Elmhurst Support Portal (ESP), by calling 01455 883 257 or by e-mail to DEA-support@elmhurstenergy.co.uk. Our office opening hours are Monday – Friday, 9am -5pm.

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