Jacinta Walmsley
A whole HIP of trouble
Homeowners can take comfort from Communities Secretary Ruth Kelly’s eleventh-hour announcement that the Government is postponing the introduction of home information packs until August 1, 2007.
The two-month delay will allow trainee Domestic Energy Assessors to qualify and give the Government time to review the regulations.
There had been much concern that there would be a shortage of accredited Domestic Energy Assessors to carry out the assessment required to produce the Energy Performance Certificate (EPC) which is a main element of a HIP. Now the Government has said that initially sellers will only have to provide a HIP if their property has four or more bedrooms because bigger properties are the most energy inefficient so these have been targeted as a priority. HIPs for smaller properties will be phased in as sufficient energy assessors become ready to start work.
The debate continues about whether HIPs will be good or bad for the market. But most agree we have a responsibility to reduce our carbon footprint, so energy rating of homes is a positive step. Many professionals are not convinced that rolling EPCs up in a legal pack is the best way to do this, as the HIP will be significantly more expensive than a standalone EPC. They are also concerned that the regulations involve the seller in extra expense to produce information required in the conveyancing process, but that this information is not enough to be of real help in achieving an earlier exchange of contracts.
The announcement also revealed that until the end of the year people will be allowed to market their properties as soon as they have commissioned a HIP and won’t have to wait for a completed EPC. This is good news for sellers and estate agents, although agents will have a headache deciding what qualifies as a four-bedroomed home with many people using rooms for a variety of purposes.
County solicitors and estate agents have been working together for over a year to ensure a smooth transition to the new scheme. During this time, we have identified changes to our working practices that will improve the home buying and selling process for our mutual clients, whether or not HIPs come in across-the-board. The main one is that if a seller is advised to instruct a solicitor when they appoint an estate agent the initial legal work can get under way in readiness for a buyer being found, which will speed up the sale. This can only benefit Shropshire’s homebuyers and sellers.
Contact Jacinta on j.walmsley@hatchers.co.uk or 01743 248545.
