Confusion still exists over HIPs and EPCs

June 14, 2010 - PRLog -- The Home Information Pack has been with us since August 2007 in what many view as a bungled attempt by the then Labour government to speed up the Home Selling process.
Documents that were previously procured and paid for by the property buyer and their solicitor were now to be obtained by the sellers solicitor and grafted into a single "pack" - The Home Information Pack was born and along with it a new industry of HIP providers.

These HIP providers, with their call centres and highly developed IT structures quickly took over from the sellers solicitors as the new cheap and efficient way to gather the required documents. The Local Authority Search market was thrown open to competition as this component of the HIP could now be supplied by Personal Search companies as well the local councils. Search prices fell as did the cost of providing the Energy Performance Certificate (EPC) which shows the energy rating of the property to be sold.

Such was the competition that in the days prior to suspension of HIPs, a complete Home Information Pack could be purchased on-line for as little as £150, this is barely more than the cost of the component parts of the pack. The definitive answer as to whether HIPs served their intended purpose will now never be known. Organisations such as AHIPP who represented the HIP providers would maintain that transaction times for a house sale are now less, whilst many estate agents saw no benefits to the HIP with it being an obstacle to getting property on the market. Clearly the sentiment of the new coalition government was such that they were willing to sacrifice an estimated £100 million in VAT receipts generated annually from HIPs.

So, with the HIP gone anyone intending to sell their house can simply phone their local agent, or go on-line to have their house plastered across the internet within a matter of hours? Possible, but not strictly true as there is a component of the HIP which has remained as a legal requirement. Any property coming on to the market must have a valid Energy Performance Certificate - the EPC.

The EPC simply displays the energy efficiency of a building using an A to G rating, with A being the most energy efficient and G the least. This will tell potential buyers how affordable or how expensive their energy bills may be. It also, crucially informs on how environmentally damaging or friendly a building is. It has been estimated that almost half of the UK’s carbon emissions are the result of our buildings. That’s almost double the amount produced by cars and planes. Carbon emissions are dramatically impacted by factors such as insulation, the kind of heating systems in place and awareness of energy saving steps. By keeping this element of the HIP the government is hoping that the new owners of the property will be encouraged to take steps to improve the energy efficiency of their new home.

The process of obtaining an EPC is now the first step towards selling your house and whilst you do not need to physically have the EPC document to welcome potential buyers, you must have commissioned and taken steps to have paid for the EPC in order to comply with the Law. Estate Agents should note that it is not only the seller’s responsibility to ensure they comply. Agents now have a duty to ensure an EPC has been commissioned prior to undertaking any marketing of the property. Reasonable efforts must be made by both parties to ensure that the EPC is produced within 28 days at the very latest.

The penalties for non compliance are likely to remain the same as for Landlords who do not comply, with an initial £200 fine which can be reoccurring until such time as the EPC is produced.

Obtaining an EPC is a simple process and is carried out by domestic energy assessors. A survey of the property is required during which time the assessor will examine all elements of the property that affect energy consumption. However, in this naturally competitive market home sellers should be wary of companies offering cut price EPCs.
Many of the companies advertising low prices are failed HIP providers masquerading as professional energy assessor firms. Others may be newly qualified assessors desperate to recover the £4000 average cost needed to train as an EPC producer.

Does it really make any difference who I get to do an EPC? will be a question asked by many home sellers. The EPC has been catapulted to prominence as a stand alone document since the change in the law for HIPs. From within the Home Information Pack the EPC was typically overlooked by potential buyers but now the energy rating and the cost of providing heating, lighting and hot water will be an early consideration for the “switched on”  home buyer. Given a choice, will prospective buyers view an "E" rated house ahead of one rated "B", who knows, but making sure your EPC is accurate is as simple as making the right EPC Choice

Notes to Editors

This article has been written by Chris Grant who is a qualified Domestic Energy Assessor and a director of EPC Choice.

EPC Choice - http://www.epcchoice.com have been established since 2007. They operate nationally and all of their assessors have met the high standards of training and professionalism required for a company that provides their services to Housing Associations, Property Companies, Local Authorities and major PLCs.

Whilst some EPC providers will quote "prices from" EPC Choice operate a bespoke quotation services. Visit http://www.epcchoice.com/epc_quote.html to obtain an instant quotation for your EPC anywhere in the UK. Our highly qualified assessors are available 7 days a week with appointment times to suit every client.

To contact EPC Choice on any matters relating to EPCs visit http://epcchoice.com/contact_us.html and complete a short enquiry form.

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EPC Choice provide Energy Performance Certificates to the property sector. Our services include EPCs for both public and private Landlords, Housing Associations, Letting and Estate Agents and the Construction Industry.
There is only one choice EPC Choice

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