Whilst HIP suppliers have routinely made grand promises about everything from ease of ordering, instant EPC appointments and 24 hour turnaround times, their approach to the Property Information Questionnaires (PIQs) make Erasmus’s words more appropriate than ever. Providers, faced with the unenviable task of providing a completed PIQ within the HIP are assuming that every vendor will complete an online form within minutes of paying for the HIP. Whilst this approach suits low-price system-oriented suppliers, the reality is that the PIQ will be a time-consuming and drawn-out process. If providers asked estate agents about the effort it takes to ensure clients provide information about their property, the reality will be a little unpalatable. Sellers will want paper copies of the form, which they will then delay in returning, which in turn will require the provider to follow up rapidly and effectively. As properties cannot be marketed without the PIQ in place after April 6th, we expect high levels of frustration from agents using providers that rely on technology for service provision.
Government Advertising
To overcome the lack of awareness about the changes in April, full-page advertisements from the government are starting to appear in the national and regional press. They are focussed on promising buyers that more information will be available about prospective properties for free, and have appeared in the London Metro and regional newspapers across the country, as well as the trade press. This provides the strongest evidence yet about the government’s commitment to the changes and should help drive awareness of the change to sellers.
Trading Standards Inspection
With the scrapping of the first day marketing exemption, questions have been raised about how effectively this new system will be policed. There has been a certain amount of scepticism about the ability of trading standards to cope with inspections of agents. However, evidence is emerging that trading standards officers are actively inspecting agents, with reports of on-the-spot visits in the London Borough of Camden. Agents were asked to demonstrate the process they use to order HIPs, as well as produce copies of a HIP on an existing property and show the Energy Performance Certificate for the rental properties that they had on their books.
PIQ Service
Despite not being obligatory until April 6th, sellers are starting to return completed PIQs to us. We are adopting a three-tier approach to their introduction and are working closely with our clients to minimise the impact of their introduction:
1. Paper copies from agent
We are sending out hundreds of pre-printed copies to agents this week that they can supply to their clients directly on instruction and return to our offices.
2. Paper copies directly to client
From April, sellers will be given the option to receive the PIQ in paper format, with reply-paid envelopes included to accelerate the return process.
3. Electronic delivery
We will send out links to the PDF version of the PIQ – available here, which can be printed out, completed and then returned to the company, as well as a link to the online version for instant data collection.
Please contact us if you have any questions about the process or for copies of the forms.
Monday, 23 March 2009
Friday, 27 February 2009
“I am not economically viable”
From April, we may see former personal search agents outside council offices wearing placards with the same message as the redundant employee in Joel Schumacher’s classic film,“Falling Down”. This is because from that time, the current method of using insurance to cover missing information in personal searches can no longer be used and local authorities will be able to charge for providing complete information, which observers believe will make the personal search market uncompetitive. Given that many solicitors tend to trust only the drainage search element of a HIP, this long overdue change could mean a wider use of official searches in a HIP, making them more useful. While we sympathise with anyone whose job is at risk, the two-tier system introduced by the use of personal searches has always undermined the HIP and the change is welcomed.
Domestic Energy Assessors and access
The accountability of energy assessors is starting to be questioned with anecdotal evidence that agents are becoming concerned about the quality of individuals that are, in effect, representing their firm. In addition to these concerns, we have also seen issues with owners (and in particular landlords) being unwilling to allow entry for assessors. However, under the Energy Performance of Buildings Regulations, access must be provided for assessors and landlords cannot deny access when requested. Finally, given that after April 6th the speed with which Energy Performance Certificates can be produced will be vital, those firms currently putting up with response times of 1-2 weeks may find that they need to review their suppliers.
Property Information Questionnaires (PIQ)
It is becoming clear that after April 6th, one of the key issues determining whether a property may be marketed will be the return of the completed Property Information Questionnaire. These forms must be filled out by the seller and returned to the HIP provider before a property may be marketed. Many of our clients feel that the most effective method will be to provide the form to the client as part of the instruction process and for the HIP provider to follow up on their return. We are already supplying stocks of these to our clients, along with reply paid envelopes and naturally promoting the online completion of the form through our system.
Current legal position
It is apparent that some HIP providers are trying to convince sellers to pay for documents to be refreshed in HIPs that are a year old. However, searches and title information only need to be refreshed if a property is taken off the market a year after it was first marketed and then remarketed again. Recognising this, and to assist our clients, we provide a unique warning system which alerts to agent to properties that have been on the market a year to check their records.
We have produced a summary sheet which summarises the current legal position which can be downloaded here:
http://www.thepartnershiplimited.com/Documents/The%20Current%20Position%20-%20February%202009.pdf
Domestic Energy Assessors and access
The accountability of energy assessors is starting to be questioned with anecdotal evidence that agents are becoming concerned about the quality of individuals that are, in effect, representing their firm. In addition to these concerns, we have also seen issues with owners (and in particular landlords) being unwilling to allow entry for assessors. However, under the Energy Performance of Buildings Regulations, access must be provided for assessors and landlords cannot deny access when requested. Finally, given that after April 6th the speed with which Energy Performance Certificates can be produced will be vital, those firms currently putting up with response times of 1-2 weeks may find that they need to review their suppliers.
Property Information Questionnaires (PIQ)
It is becoming clear that after April 6th, one of the key issues determining whether a property may be marketed will be the return of the completed Property Information Questionnaire. These forms must be filled out by the seller and returned to the HIP provider before a property may be marketed. Many of our clients feel that the most effective method will be to provide the form to the client as part of the instruction process and for the HIP provider to follow up on their return. We are already supplying stocks of these to our clients, along with reply paid envelopes and naturally promoting the online completion of the form through our system.
Current legal position
It is apparent that some HIP providers are trying to convince sellers to pay for documents to be refreshed in HIPs that are a year old. However, searches and title information only need to be refreshed if a property is taken off the market a year after it was first marketed and then remarketed again. Recognising this, and to assist our clients, we provide a unique warning system which alerts to agent to properties that have been on the market a year to check their records.
We have produced a summary sheet which summarises the current legal position which can be downloaded here:
http://www.thepartnershiplimited.com/Documents/The%20Current%20Position%20-%20February%202009.pdf
Sunday, 25 January 2009
“Buyers are starting to ask for HIPs”.
We’re very pleased that our clients have spare chairs in their offices, because we've been deploying them with great haste on several occasions recently when greeted with the news that buyers are asking to see a HIP. As their content is intended for conveyancers we are intrigued to see their reaction to details of restrictive covenants and agricultural tie appeals, but the mere fact that they are asking for them is highly encouraging. The introduction of the new Property Information Questionnaire (PIQ) from April which includes questions about access to the property as well as council tax band information makes the HIP more consumer-oriented, and we expect enquiries about their content to increase.
Property Information Questionnaire
Any doubt about the government’s intention to press ahead with the changes in April were put aside last week when the law was quietly changed to dictate that the PIQ is required before a property may be marketed for sale. Sellers must complete the questionnaire and it must be included in the HIP before marketing may commence. It is important to note that if an estate agent assists the seller in completing the form then the Property Misdescriptions Act applies.
We provide three options for our clients – hard copy and Adobe PDF format (a branded version is now available on our website: www.thepartnershiplimited.com/Documents/piq.pdf) and from 1st March, a web-based alternative will be in place.
Energy Performance Certificate rules
All commercial and residential properties (with a few exceptions) now need an Energy Performance Certificate (EPC) when they are marketed for sale or rent irrespective of when marketing has commenced. However, an interesting exemption has been determined for those without any heat source. Under the enabling legislation (The Energy Performance of Buildings Regulations) the law defines a building as being one whose climate is controlled by energy. Therefore, it appears that if a property is not climatically controlled, it does not qualify as a building and will not need an EPC. It should be noted that this does not apply with predicted energy assessments, i.e. where the developer has specifically designated a heating source, which may not have been installed yet but there are plans to do so.
Existing properties taken off the market
If a property with a HIP is taken off the market a year after it was first marketed for sale, some content must be refreshed if the property is subsequently remarketed. This includes title documentation and searches, which will naturally require an update to the index. As EPCs last for 10 years and may be up to 3 years old on inclusion in a HIP, obviously these need not be updated as they will be at most 18 months old.
To ensure our clients are aware of any potential breach caused by this, from February 1st we will be launching a new email reminder service which will send an email a month before the year’s anniversary of the date that the HIP was commissioned, warning that if the property has been taken off the market with plans to remarket it then new documentation will be required.
Property Information Questionnaire
Any doubt about the government’s intention to press ahead with the changes in April were put aside last week when the law was quietly changed to dictate that the PIQ is required before a property may be marketed for sale. Sellers must complete the questionnaire and it must be included in the HIP before marketing may commence. It is important to note that if an estate agent assists the seller in completing the form then the Property Misdescriptions Act applies.
We provide three options for our clients – hard copy and Adobe PDF format (a branded version is now available on our website: www.thepartnershiplimited.com/Documents/piq.pdf) and from 1st March, a web-based alternative will be in place.
Energy Performance Certificate rules
All commercial and residential properties (with a few exceptions) now need an Energy Performance Certificate (EPC) when they are marketed for sale or rent irrespective of when marketing has commenced. However, an interesting exemption has been determined for those without any heat source. Under the enabling legislation (The Energy Performance of Buildings Regulations) the law defines a building as being one whose climate is controlled by energy. Therefore, it appears that if a property is not climatically controlled, it does not qualify as a building and will not need an EPC. It should be noted that this does not apply with predicted energy assessments, i.e. where the developer has specifically designated a heating source, which may not have been installed yet but there are plans to do so.
Existing properties taken off the market
If a property with a HIP is taken off the market a year after it was first marketed for sale, some content must be refreshed if the property is subsequently remarketed. This includes title documentation and searches, which will naturally require an update to the index. As EPCs last for 10 years and may be up to 3 years old on inclusion in a HIP, obviously these need not be updated as they will be at most 18 months old.
To ensure our clients are aware of any potential breach caused by this, from February 1st we will be launching a new email reminder service which will send an email a month before the year’s anniversary of the date that the HIP was commissioned, warning that if the property has been taken off the market with plans to remarket it then new documentation will be required.
Monday, 22 December 2008
“How much does a cheap personal search cost? About £10m”
We are often questioned about over-reacting to concerns about the acceptability of personal searches and the wasted costs to consumers. However, government figures published on 8th December that estimated consumers may spend up to £10m every year on searches by local authorities repeating insurance-backed personal searches will confound our critics. The memorandum also explored the long-suspected belief that even though local authorities do provide access to their data, personal search companies do not obtain this “to save costs”. We await with interest how these companies that have been complaining so vocally for so long about lack of access will respond to the scrapping of search insurance on 6th April 2009.
Property Information Questionnaire (PIQ) Confusion
The PIQ, due to be introduced in April 2009, was designed to respond to concerns about providing buyers with more information about the property earlier on in the marketing cycle. This lead some commentators to believe that it needed to be there before a property can be marketed. However, the law is clear that while the documentation is an obligatory part of the HIP, it does not state that it needs to be included before marketing may commence. While a government representative has suggested that the regulations may be changed in the future, at this point, from April 2009 a property may still be marketed awaiting the completion of the PIQ.
Naturally, we have already completed the work to integrate PIQs into our online system and an example copy of the final, compliant documentation can be seen here:
www.thepartnershiplimited.com/html/PIQ
Electronic PDF copies of this document are available – please just reply to this email for a copy.
First Day Marketing arrives but no drop-dead date
There remains a little confusion about the scrapping of the first day marketing temporary provisions. From April 2009, in conjunction with the introduction of the PIQ, it will be necessary to have the index, sale statement, title and EPC available before a property can be marketed. Other documents such as leases and search documentation do not have to be available, and the seller (or the agent) has 28 days in which to obtain these documents.
Meanwhile, the issue of the drop-dead date, i.e. when all properties already on the market will need a HIP, is yet to be addressed, so any properties that have been continuously marketed since before August 2007, will only need an EPC, rather than a full HIP.
Finally – here’s to boring predictability
As the only company to publish a newsletter every month for the past three years, we’d like to wish all our readers a very peaceful Christmas and a more boring and predictable 2009.
Property Information Questionnaire (PIQ) Confusion
The PIQ, due to be introduced in April 2009, was designed to respond to concerns about providing buyers with more information about the property earlier on in the marketing cycle. This lead some commentators to believe that it needed to be there before a property can be marketed. However, the law is clear that while the documentation is an obligatory part of the HIP, it does not state that it needs to be included before marketing may commence. While a government representative has suggested that the regulations may be changed in the future, at this point, from April 2009 a property may still be marketed awaiting the completion of the PIQ.
Naturally, we have already completed the work to integrate PIQs into our online system and an example copy of the final, compliant documentation can be seen here:
www.thepartnershiplimited.com/html/PIQ
Electronic PDF copies of this document are available – please just reply to this email for a copy.
First Day Marketing arrives but no drop-dead date
There remains a little confusion about the scrapping of the first day marketing temporary provisions. From April 2009, in conjunction with the introduction of the PIQ, it will be necessary to have the index, sale statement, title and EPC available before a property can be marketed. Other documents such as leases and search documentation do not have to be available, and the seller (or the agent) has 28 days in which to obtain these documents.
Meanwhile, the issue of the drop-dead date, i.e. when all properties already on the market will need a HIP, is yet to be addressed, so any properties that have been continuously marketed since before August 2007, will only need an EPC, rather than a full HIP.
Finally – here’s to boring predictability
As the only company to publish a newsletter every month for the past three years, we’d like to wish all our readers a very peaceful Christmas and a more boring and predictable 2009.
Monday, 10 November 2008
“The turkey twizzlers of HIPs are finally coming home to roost”
When we raised the issue last summer about the quality of content within HIPs, we received a barrage of complaints from our competitors that we were causing unnecessary problems. However, as sellers continue to remain ill-informed about the variable quality of personal local authority searches, an inspection by Birmingham trading standards officers has revealed that a majority of HIPs they inspected contained sub-standard searches. We were delighted that at a recent conference Ian Wright MP agreed with our concerns about the use of poor quality content and confirmed this matter would be addressed “imminently”. With the provision allowing the inclusion of personal search insurance due to expire on 31st December, we continue to press for the exclusion on the use of personal searches in HIPs.
HIP effectiveness and Exchange Ready HIPs
Recent research from Connells has revealed that the time between offer and exchange has been reduced by 6 days where HIPs are involved in the process. Inevitably, there remain concerns about the effectiveness of some of the content and the latest fashion for “Exchange-Ready HIPs” appears to do little to address this. “Exchange Ready HIPs” include some forms (which are due to be obligatory from January 1st 2009) an environmental search and a draft contract. Feedback from the Law Society and solicitors has revealed that as most use their own contracts, the value of including such draft documents is highly questionable.
October 1st - EPCs for all properties
As many people are aware, most residential properties that are being marketed for sale now need an Energy Performance Certificate (EPC) before exchange of contracts. However, there are some exceptions for small standalone properties (under 50 sqm), those that are temporary, agricultural or for religious use. It is important to note that the owner rather than their estate agent is responsible for providing an EPC, which differs from HIPs where the estate agent is responsible.
Commercial Energy Performance Certificate Rules
Originally, from October 1st all commercial properties being offered for sale or had a change of tenancy, would need an EPC. The temporary provision that excluded smaller properties (under 2500sqm) that were already on the market, has been delayed until January 2009. However, all new instructions (other than those exempted under the rules above) do need an EPC. The complexity of producing commercial certificates combined with a current shortage of commercial energy assessors has resulted in higher prices with lead-times typically of three to four weeks.
HIP effectiveness and Exchange Ready HIPs
Recent research from Connells has revealed that the time between offer and exchange has been reduced by 6 days where HIPs are involved in the process. Inevitably, there remain concerns about the effectiveness of some of the content and the latest fashion for “Exchange-Ready HIPs” appears to do little to address this. “Exchange Ready HIPs” include some forms (which are due to be obligatory from January 1st 2009) an environmental search and a draft contract. Feedback from the Law Society and solicitors has revealed that as most use their own contracts, the value of including such draft documents is highly questionable.
October 1st - EPCs for all properties
As many people are aware, most residential properties that are being marketed for sale now need an Energy Performance Certificate (EPC) before exchange of contracts. However, there are some exceptions for small standalone properties (under 50 sqm), those that are temporary, agricultural or for religious use. It is important to note that the owner rather than their estate agent is responsible for providing an EPC, which differs from HIPs where the estate agent is responsible.
Commercial Energy Performance Certificate Rules
Originally, from October 1st all commercial properties being offered for sale or had a change of tenancy, would need an EPC. The temporary provision that excluded smaller properties (under 2500sqm) that were already on the market, has been delayed until January 2009. However, all new instructions (other than those exempted under the rules above) do need an EPC. The complexity of producing commercial certificates combined with a current shortage of commercial energy assessors has resulted in higher prices with lead-times typically of three to four weeks.
Sunday, 21 September 2008
“I love the smell of napalm in the morning ...”
If someone could be convinced to bring the recent machinations of the property market to the big screen, we feel they could do far worse than draw upon Francis Ford Coppola’s experience with Apocalypse Now. With the news of several better-known names in the HIP industry closing due to lower-than-expected volumes, it seems only a matter of time before others will follow suit. As ever, we remain unconvinced by the strategy of very low price points in a service market, and we watch with interest over the next three months, whether those firms that were relying on the usual Autumn increase in instructions will survive.
EPCs for Lettings
From October 1st, an Energy Performance Certificate is required before a property may be marketed as being available to be let. There is a belief that they are only required when an actual tenant is found, probably caused by the requirement that they are required at first change of tenancy. However, the law is clear and states that an EPC must be available to show to any prospective tenant.
Another area of confusion is whether energy charts need to be on lettings particulars. The law states that they are required on particulars for those properties covered by the Housing Act, which does not refer to rental properties. Therefore, charts are only required on sales particulars, but some agents are including these as a matter of course on lettings particulars.
We have found a significant interest in our 48 hour-turnaround EPC service, and in particular our use of employed assessors, which ensures we can guarantee exact appointment times. More information is available on our new website:
www.thepartnershiplimited.com/html/epclettings.html
Extending the “life” of EPCs in HIPs
Given the confusion over the validity of Energy Performance Certificates, the latest announcement from the government was a missed opportunity to simplify the position. Although EPCs are valid for ten years, currently, they can only be up to a year old when first included in a HIP. However, a recent announcement has confirmed that from October 1st, EPCs can be up to three years old when they are first included in a HIP.
Rebranding Complete
We have finished our rebranding which includes a complete overhaul of our website. The site has been designed to be more accessible for agents, solicitors and sellers, which reflects the increase we have seen from sellers looking for information about HIPs directly from us.
www.thepartnershiplimited.com
We of course welcome all feedback on our new site.
EPCs for Lettings
From October 1st, an Energy Performance Certificate is required before a property may be marketed as being available to be let. There is a belief that they are only required when an actual tenant is found, probably caused by the requirement that they are required at first change of tenancy. However, the law is clear and states that an EPC must be available to show to any prospective tenant.
Another area of confusion is whether energy charts need to be on lettings particulars. The law states that they are required on particulars for those properties covered by the Housing Act, which does not refer to rental properties. Therefore, charts are only required on sales particulars, but some agents are including these as a matter of course on lettings particulars.
We have found a significant interest in our 48 hour-turnaround EPC service, and in particular our use of employed assessors, which ensures we can guarantee exact appointment times. More information is available on our new website:
www.thepartnershiplimited.com/html/epclettings.html
Extending the “life” of EPCs in HIPs
Given the confusion over the validity of Energy Performance Certificates, the latest announcement from the government was a missed opportunity to simplify the position. Although EPCs are valid for ten years, currently, they can only be up to a year old when first included in a HIP. However, a recent announcement has confirmed that from October 1st, EPCs can be up to three years old when they are first included in a HIP.
Rebranding Complete
We have finished our rebranding which includes a complete overhaul of our website. The site has been designed to be more accessible for agents, solicitors and sellers, which reflects the increase we have seen from sellers looking for information about HIPs directly from us.
www.thepartnershiplimited.com
We of course welcome all feedback on our new site.
Sunday, 17 August 2008
"... lollipops, ice-cream, chocolate ... all free today!"
The latest promises from back-bedroom HIP providers would make even a child-catcher blush. With their free floorplans, virtual tours, photographs and brochures, it seems that their plans to capture agents like the hapless children in Chitty Chitty Bang Bang are ambitious to say the least. Indeed, given assurances that their energy assessors have now also become property photographers, we await the results from Boots with mounting anticipation. In our opinion, never has the adage, “if it sounds too good to be true, then it probably is” been more appropriate, especially given the implications of the Property Misdescriptions Act relating to such matters.
Property Information Questionnaire
In a move that reflects government efforts to listen to feedback about HIPs, a new consultation paper was announced this month. There are changes proposed to the contents of HIPs to include additional information about the property itself such as access, boundaries and leasehold details if appropriate. If approved, this change will be introduced in January 2009 and will require sellers to complete the forms for inclusion in the HIP. The Partnership will provide a solution for capturing this information and planning is already underway for the process change required.
Thatched roofs recognised
It has become clear over the past year that home owners with thatched roofs felt somewhat short-changed when it came to the Energy Performance Certificate (EPC). While the insulating properties of thatch are well-known, the calculation methods used in the EPC could not take this into account directly and many owners have been disappointed to see that their roofs were not detailed in the report. However, from next month, thatch will now explicitly be included, highlighting its energy efficient qualities.
New Partnership branding
As one of the few companies actually growing its client base significantly, we continue to invest in the business. From September, we will be refreshing our entire brand which will include changes to the website and our HIPs will sport a new, more professional look. Widely acknowledged as the leader in the premium property market, we continue to invest in our people, systems and our materials to ensure that our clients receive the most professional support in the industry.
Association of HIP Providers – an apology
In our last newsletter, it was stated that the Association of HIP Providers had not warned their members that EPCs could no longer be accessed through a direct link. We have been informed that AHIPP did provide details to their clients and we apologise for any distress that this reporting may have caused.
Property Information Questionnaire
In a move that reflects government efforts to listen to feedback about HIPs, a new consultation paper was announced this month. There are changes proposed to the contents of HIPs to include additional information about the property itself such as access, boundaries and leasehold details if appropriate. If approved, this change will be introduced in January 2009 and will require sellers to complete the forms for inclusion in the HIP. The Partnership will provide a solution for capturing this information and planning is already underway for the process change required.
Thatched roofs recognised
It has become clear over the past year that home owners with thatched roofs felt somewhat short-changed when it came to the Energy Performance Certificate (EPC). While the insulating properties of thatch are well-known, the calculation methods used in the EPC could not take this into account directly and many owners have been disappointed to see that their roofs were not detailed in the report. However, from next month, thatch will now explicitly be included, highlighting its energy efficient qualities.
New Partnership branding
As one of the few companies actually growing its client base significantly, we continue to invest in the business. From September, we will be refreshing our entire brand which will include changes to the website and our HIPs will sport a new, more professional look. Widely acknowledged as the leader in the premium property market, we continue to invest in our people, systems and our materials to ensure that our clients receive the most professional support in the industry.
Association of HIP Providers – an apology
In our last newsletter, it was stated that the Association of HIP Providers had not warned their members that EPCs could no longer be accessed through a direct link. We have been informed that AHIPP did provide details to their clients and we apologise for any distress that this reporting may have caused.
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