With the government's recent announcement that it plans to introduce a single set of standards for Home Information Packs, it appears that despite the efforts of supporters of the HIPCode, this first fledgling attempt at standards appears consigned to the same fate as the Norwegian Blue. In a statement, the government confirmed that they will be working with professional bodies including RICS, NAEA and The Law Society to improve the documentation contained within HIPs. This issue, that The Partnership has been campaigning for over the past three years, has clearly yet to be addressed and the government is now ready to step in to help improve standards. With the use of variable quality, manually produced personal local authority searches and incomplete title information still widespread amongst the majority of HIP providers, this new code of practice should help guide consumers to using professional suppliers and eliminate the duplication of effort that inferior quality HIPs have been generating to date.
Shift in Conservative position on HIPs
The twilight zone that is English Politics 2008 has revealed a change in attitude towards HIPs by the Conservative party. Grant Schapps, the shadow housing minister, has been describing the “positive spin-offs from the introduction of HIPs” and that any future government would be “mad to do away with anything that has been helpful … there is no dogma about this whole thing at all as far as I am concerned”. This monumental shift may cause consternation amongst anti-HIP campaigners who have been ticking off the days to a Conservative government. After years of campaigning against their introduction it appears that to opposition politicians, maybe HIPs are not the guaranteed vote-loser that they had originally envisaged.
Newbuilds
There appears to be continued confusion about HIPs for newbuilds. Although since April, all newly marketed properties irrespective of their build status require a HIP, there is still questions about the use of Predicted Energy Assessments (PEAs) and full Energy Performance Certificates (EPCs). Fundamentally, if a building is incomplete, it will need a PEA that is derived from the Standard Assessment Procedure (SAP) ratings available for all new buildings, calculations that are available from the developer. The PEA can be calculated from these figures without requiring a visit to the property. However, when the building is complete, a full EPC must still be produced, but this does not require an assessor to re-visit the property and is calculated off-site.
Partnership System Usage
To enable our users to enter instructions even more quickly, we have added a new postcode lookup for those that do not use the Reapit RPS system. This means that with our system, universally accepted as being the simplest on the market with single-click ordering and requiring only four pieces of information, it now takes less than 20 seconds to place an order, and we still offer the flexibility of client invoicing and unrivalled ease of access to documents and energy data. We have also added the ability for clients to tell us where there are ancillary properties, as well as online help screens for assistance where necessary.
Monday, 19 May 2008
Thursday, 24 April 2008
"... and in the wing-mirror she sees her husband's severed head being banged on the car roof by a crazed axeman".
We are pleased to learn of a new urban myth that is challenging this rather tired classic. Although trade magazines continue to print articles on the market-killing properties of HIPs, the "Exchange-Ready HIP" now seems flavour of the month. Some observers are suggesting that by including the Home Condition Report and the Home Use and Contents forms, this will make them "Exchange Ready". While we welcome their optimism, we are concerned that expectations are being unfairly raised by such promises. Until HIPs include a contract which is agreeable to any purchaser's conveyancer and has all the answers to all the questions about the property that the aforementioned conveyancer could ever ask, the concept of the "Exchange-Ready HIP" remains in the twilight world of urban mythology.
All properties need HIPs
From the beginning of April, all qualifying properties that are brought to market now need a HIP, including newbuilds. This is because Energy Performance Certificates (EPCs) can now be produced for all types of properties, and hence the exceptions that used to exist for properties built to the latest building regulations have been eliminated.
The "Drop-Dead Date" that required properties already on the market before HIPs were introduced, to have a HIP, has still not been announced. With the first year of HIPs nearly upon us, there is still no confirmation whether such a measure will ever be introduced.
June 1st Position
To clarify the position from June 1st 2008 , this merely marks the end of the temporary measures that were introduced last year. From that date, it will be necessary to have the following documents available for prospective buyers before a property can be marketed;
- Index
- Sale statement
- Evidence of title (or a copy of the SIM search showing registration status)
- Energy Performance Certificate
As before, the seller still has 28 days to deliver the searches and the leasehold documentation, but the property may be marketed without these, although the HIP provider must demonstrate continuing efforts to obtain such documents.
EPCs for rental properties
Although not due until later this year, discussions are starting about the requirement for EPCs for rental properties. It appears that the impact of the introduction of EPCs on the rental market will be nowhere near as onerous as many had feared, with a single EPC required only at the first change of tenancy after the start date of October 1st 2008. As EPCs last for ten years, and are NOT required at future changes of tenant, their introduction will be less costly than some had thought.
All properties need HIPs
From the beginning of April, all qualifying properties that are brought to market now need a HIP, including newbuilds. This is because Energy Performance Certificates (EPCs) can now be produced for all types of properties, and hence the exceptions that used to exist for properties built to the latest building regulations have been eliminated.
The "Drop-Dead Date" that required properties already on the market before HIPs were introduced, to have a HIP, has still not been announced. With the first year of HIPs nearly upon us, there is still no confirmation whether such a measure will ever be introduced.
June 1st Position
To clarify the position from June 1st 2008 , this merely marks the end of the temporary measures that were introduced last year. From that date, it will be necessary to have the following documents available for prospective buyers before a property can be marketed;
- Index
- Sale statement
- Evidence of title (or a copy of the SIM search showing registration status)
- Energy Performance Certificate
As before, the seller still has 28 days to deliver the searches and the leasehold documentation, but the property may be marketed without these, although the HIP provider must demonstrate continuing efforts to obtain such documents.
EPCs for rental properties
Although not due until later this year, discussions are starting about the requirement for EPCs for rental properties. It appears that the impact of the introduction of EPCs on the rental market will be nowhere near as onerous as many had feared, with a single EPC required only at the first change of tenancy after the start date of October 1st 2008. As EPCs last for ten years, and are NOT required at future changes of tenant, their introduction will be less costly than some had thought.
Monday, 17 March 2008
''The complete collapse of the housing market''
Judging by the number of new instructions that we have been receiving over the past month, it seems that media rumours of the complete collapse of the housing market are somewhat over-rated. Naturally, the amount of negative media coverage about the state of the property market has led some buyers to be a little cautious, but the over-riding message is that the market is alive and well. It seems therefore that despite the introduction of HIPs, the property market has not ground to a complete standstill.
Government validates The Partnership’s concerns
In the most recent release of Progress (http://www.home-information.info/20080314) the government’s bulletin on HIPs, it has confirmed the concerns that we reported last month about some HIP providers not following the legislation accurately, and exposing their clients and estate agents to the risk of penalties for non-compliance. The government has also acknowledged the practice of some providers that deliberately do not proceed with the HIP once they have been ordered and appear not to have the full understanding of what is meant by the term, “official copies of title documents”.
MDA buys Richards Gray
As anticipated, and with the rapid growth in the number of HIP providers, the consolidation amongst them has already started. MDA, one of the larger HIP suppliers, announced at the start of March that it was acquiring Richards Gray, a smaller competitor. Although the acquisition is to be approved by the Office of Fair Trading, this transaction illustrates that companies are seeking to increase market share as quickly as possible and the most effective method is through appears to be through supplier, rather than client, acquisition.
Enhancements to HIP ordering and tracking
Following feedback from our clients, we are making some significant improvements to our HIP ordering and tracking system. While our system is recognised as being the simplest on the market, with single-click ordering from within Reapit, we’re adding more facilities to make ordering and tracking even easier.
After Easter, the upgrade will be complete, with new facilities including:
- Postcode address lookup
- Simplified HIP type ordering (already complete)
- Improved tracking including HIP search
- HIP instruction communication (already complete)
If you would like to know more about these features, please contact us.
Government validates The Partnership’s concerns
In the most recent release of Progress (http://www.home-information.info/20080314) the government’s bulletin on HIPs, it has confirmed the concerns that we reported last month about some HIP providers not following the legislation accurately, and exposing their clients and estate agents to the risk of penalties for non-compliance. The government has also acknowledged the practice of some providers that deliberately do not proceed with the HIP once they have been ordered and appear not to have the full understanding of what is meant by the term, “official copies of title documents”.
MDA buys Richards Gray
As anticipated, and with the rapid growth in the number of HIP providers, the consolidation amongst them has already started. MDA, one of the larger HIP suppliers, announced at the start of March that it was acquiring Richards Gray, a smaller competitor. Although the acquisition is to be approved by the Office of Fair Trading, this transaction illustrates that companies are seeking to increase market share as quickly as possible and the most effective method is through appears to be through supplier, rather than client, acquisition.
Enhancements to HIP ordering and tracking
Following feedback from our clients, we are making some significant improvements to our HIP ordering and tracking system. While our system is recognised as being the simplest on the market, with single-click ordering from within Reapit, we’re adding more facilities to make ordering and tracking even easier.
After Easter, the upgrade will be complete, with new facilities including:
- Postcode address lookup
- Simplified HIP type ordering (already complete)
- Improved tracking including HIP search
- HIP instruction communication (already complete)
If you would like to know more about these features, please contact us.
Monday, 18 February 2008
“Love you long time … fifteen dollars.”
Not since Kubrick’s prostitute in Full Metal Jacket made her generous offer have we seen such outrageously low prices for professional services until the recent increase in cut price HIPs. The proliferation of poor quality websites offering cheap HIPs seems to grow daily. However, as any property professional knows, relying on very low prices results in compromises to the level of service that can be provided, and our first story highlights that factory-style prices are leading to factory-style service. Sadly, with some companies flouting the law through the use of personal drainage searches, invalid copies of title documents and incomplete personal local authority searches, it is the consumer who was hoping that HIPs will speed up their sale, will be the loser.
Invalid HIPs Grow
Last week, the government published a warning that it was aware that a number of HIP providers were not using valid title documentation. It appears that a combination of cost cutting and an inability to combine the title documents into a single file has lead to some providers using “Register Views” rather than official copies of the register. This, when combined with the use of personal searches that do not include critical information such as environmental health reports is resulting in some consumers paying for HIPs that are not legally compliant.
Leasehold HIPs
Many people are still unaware that from last December, complete leasehold information in a HIP was made optional by a change in the law. This means that leasehold HIPs only need to contain just a copy of the lease which significantly reduces the amount of work required to produce HIPs for such properties. This is just a temporary measure and after June 1st much more useful information such as planned works, management accounts and service charge documents will be required.
Price unification
Recent changes in the market has meant that we are now able to offer a much simpler pricing mechanism for our HIPs. Our Compliant HIPs are now a fixed price of only £349+VAT, which covers unlimited number of titles, unregistered titles, two printed copies with additional copies available for no additional cost. The price of our unique fixed-price authorised HIPs, with full authorised searches and complete title documentation has been significantly reduced to only £495+VAT outside London, and £560+VAT for all London boroughs, making them considerably more attractive for all our clients.
Invalid HIPs Grow
Last week, the government published a warning that it was aware that a number of HIP providers were not using valid title documentation. It appears that a combination of cost cutting and an inability to combine the title documents into a single file has lead to some providers using “Register Views” rather than official copies of the register. This, when combined with the use of personal searches that do not include critical information such as environmental health reports is resulting in some consumers paying for HIPs that are not legally compliant.
Leasehold HIPs
Many people are still unaware that from last December, complete leasehold information in a HIP was made optional by a change in the law. This means that leasehold HIPs only need to contain just a copy of the lease which significantly reduces the amount of work required to produce HIPs for such properties. This is just a temporary measure and after June 1st much more useful information such as planned works, management accounts and service charge documents will be required.
Price unification
Recent changes in the market has meant that we are now able to offer a much simpler pricing mechanism for our HIPs. Our Compliant HIPs are now a fixed price of only £349+VAT, which covers unlimited number of titles, unregistered titles, two printed copies with additional copies available for no additional cost. The price of our unique fixed-price authorised HIPs, with full authorised searches and complete title documentation has been significantly reduced to only £495+VAT outside London, and £560+VAT for all London boroughs, making them considerably more attractive for all our clients.
Sunday, 20 January 2008
''The dangers of low-cost content''
Our widely-reported warnings last summer about the problems that would be caused by the use of low-cost HIP content are coming true. In the last few days, we have had incidents whereby low-cost content has discouraged a buyer and is likely to cost a seller more to compensate for inadequate documentation. Where buyers and solicitors are looking at HIPs containing personal searches and incomplete title documentation there is a genuine risk that this may discourage some from proceeding with a particular property.
On a positive note, we have received intriguing feedback from search providers who are receiving fewer requests for non-HIP based searches such as environmental, indicating that some solicitors are not commissioning their own searches, but relying on HIP content, which is in direct contradiction to some perceptions.
Further details of these cases will be available later this week.
Newbuild Confusion
There is still confusion over whether newly-built properties require a HIP. Contrary to popular belief, all new-builds needed a HIP until May 2007 when a piece of enabling legislation stated that if a property complied with Building Regulations 2006 or later, a HIP was not required. Although it is hoped that this anomaly will be resolved by April, it will require software developers to fix the problem and this date is by no means guaranteed. Until that time, it is necessary to know under which regulations a property complies, as many will indeed be exempt.
Sellers check of forms
From the earliest introduction of HIPs, it was intended that the seller would check the contents of the sales statement and the index and sign them accordingly. Due to concerns about identify fraud, this was changed to just a tick instead. There were questions about the usefulness of such an anonymous mark and this requirement has now been quietly dropped. That said, the responsible person, either the seller or estate agent, is still responsible for ensuring that the sale statement and index are correct – they just don’t need to tick the box.
Energy efficiency leads to higher heating bills
We were intrigued to receive an Energy Performance Certificate (EPC) which resulted in higher heating bills if all the energy saving methods were introduced. It appears that low-energy light-bulbs generate less heat than the traditional type, so to maintain the same temperature in a property, the heating will need to be increased, resulting in a higher bill for that utility, albeit offset by a reduced electricity requirement for the lighting the bulbs.
On a positive note, we have received intriguing feedback from search providers who are receiving fewer requests for non-HIP based searches such as environmental, indicating that some solicitors are not commissioning their own searches, but relying on HIP content, which is in direct contradiction to some perceptions.
Further details of these cases will be available later this week.
Newbuild Confusion
There is still confusion over whether newly-built properties require a HIP. Contrary to popular belief, all new-builds needed a HIP until May 2007 when a piece of enabling legislation stated that if a property complied with Building Regulations 2006 or later, a HIP was not required. Although it is hoped that this anomaly will be resolved by April, it will require software developers to fix the problem and this date is by no means guaranteed. Until that time, it is necessary to know under which regulations a property complies, as many will indeed be exempt.
Sellers check of forms
From the earliest introduction of HIPs, it was intended that the seller would check the contents of the sales statement and the index and sign them accordingly. Due to concerns about identify fraud, this was changed to just a tick instead. There were questions about the usefulness of such an anonymous mark and this requirement has now been quietly dropped. That said, the responsible person, either the seller or estate agent, is still responsible for ensuring that the sale statement and index are correct – they just don’t need to tick the box.
Energy efficiency leads to higher heating bills
We were intrigued to receive an Energy Performance Certificate (EPC) which resulted in higher heating bills if all the energy saving methods were introduced. It appears that low-energy light-bulbs generate less heat than the traditional type, so to maintain the same temperature in a property, the heating will need to be increased, resulting in a higher bill for that utility, albeit offset by a reduced electricity requirement for the lighting the bulbs.
Monday, 17 December 2007
''The saga continues ...''
With the majority of new property instructions now requiring a Home Information Pack, the saga that is the introduction of HIPs appears to have finally reached the end of the first chapter. Almost a year late from the original introduction date with some of the earlier requirements diluted, critics argue the scheme has been seriously undermined. Indeed, with matters such as obtaining EPCs for newly built properties and the ongoing confusion of the “drop dead date” this project has someway to run, although it was always clear there would be changes along the way. That said, HIPs have achieved the goals of improving awareness of the issues in house buying and selling and consumers are starting to reap the benefits of reduced search costs, faster turnaround times and increased commitment levels from sellers. With HIPs increasingly used in the conveyancing process, the ongoing debate about the use of personal local authority searches will no doubt continue to drive down prices and improve service levels.
1st January 2008 Clarification
With the recent changes concerning the reduced amount of leasehold information required and continuation of first day marketing, there is still some confusion about the current position. From 1st January 2008 there will be NO change from the current position; i.e. properties can be marketed once a HIP has been commissioned and only the lease is required for leasehold properties. Properties already on the market before the introduction of HIPs and newbuilds complying to the latest building regulations standards will still NOT need a HIP.
Market Consolidation
There are early signs that the highly fragmented HIP service provision market is starting to consolidate, with a number of firms facing up to the realities of reduced margins and the increased support overheads required to deliver HIPs and Energy Performance Certificates. One company that had been very prominent was Habitus, who have recently announced that they have put their energy assessment business into administration.
Media Coverage
We were pleased to be published in Paralegal Magazine, the RICS SafeAs newsletter, as well as being involved with the first podcast for the Partnership, details of which can be found here.
http://www.energy-performance-certificates.org/dea/podcasts/thepartnership-12-12-07
1st January 2008 Clarification
With the recent changes concerning the reduced amount of leasehold information required and continuation of first day marketing, there is still some confusion about the current position. From 1st January 2008 there will be NO change from the current position; i.e. properties can be marketed once a HIP has been commissioned and only the lease is required for leasehold properties. Properties already on the market before the introduction of HIPs and newbuilds complying to the latest building regulations standards will still NOT need a HIP.
Market Consolidation
There are early signs that the highly fragmented HIP service provision market is starting to consolidate, with a number of firms facing up to the realities of reduced margins and the increased support overheads required to deliver HIPs and Energy Performance Certificates. One company that had been very prominent was Habitus, who have recently announced that they have put their energy assessment business into administration.
Media Coverage
We were pleased to be published in Paralegal Magazine, the RICS SafeAs newsletter, as well as being involved with the first podcast for the Partnership, details of which can be found here.
http://www.energy-performance-certificates.org/dea/podcasts/thepartnership-12-12-07
Sunday, 18 November 2007
''The promise of an early Christmas present''
The promise of an early Christmas present for domestic energy assessors of HIPs for 1-2 bedroom properties appears not to be forthcoming. While the introduction may bring welcome work for some of the 10,000 trained assessors, many of these properties will be leasehold, which are proving challenging to deliver HIPs quickly. Indeed, the tough realities of rapid HIP production are starting to make some of the promises of a “5 Day HIP” ring a little hollow, with one major company taking 10 weeks to finish the work. With most HIP providers apart from ourselves lobbying for “full market” introduction, for some it could indeed be a case of turkeys voting for the aforementioned festival.
Personal searches issues increasing
Following the news last month of local authorities reducing their authorised search pricing, some are now charging fees of up to £60 to provide information on building control notices and environmental health. With additional appointments required to obtain this information, this will only add to the increasing delays in appointment times of up to 3 weeks currently being witnessed. Given that this performance is expected to deteriorate further with higher volumes, even at this very early stage, personal searches are already starting to be less attractive than the authorised alternative in terms of turnaround times and of course, unqualified mortgage lender acceptability.
January 1st 2008 – Myths and Realities
There appears to be a certain amount of confusion about the changes due in the new year. Some believe that all properties will require a HIP and a property cannot be marketed without all the documentation in place. As has already been seen, there remains no news on 1-2 bedroom properties and there is no requirement for the complete HIP to be available before marketing. From January 1st 2008, a HIP will need to be in place but if the searches and leasehold documentation are not available, the property may be marketed anyway. HIP providers must continue to try and obtain outstanding information, but a property may be marketed with just an EPC, title information, index and sale statement being available.
HIP Knowledge – A resounding success
Since launching our new HIP Knowledge (http://www.thepartnershiplimited.com/html/faq01.html) a week ago, we have received over 6000 enquiries and the feedback has been extremely positive. The knowledgebase goes beyond the often out-dated and trivial “what goes into a HIP” type of “Frequently Asked Questions” and provides an up-to-date and useful resource for agents and solicitors looking for answers on more indepth topics. If you have any questions that you do not see on the site, please email us on info@thepartnershiplimited.com and we will add it to the lists.
Personal searches issues increasing
Following the news last month of local authorities reducing their authorised search pricing, some are now charging fees of up to £60 to provide information on building control notices and environmental health. With additional appointments required to obtain this information, this will only add to the increasing delays in appointment times of up to 3 weeks currently being witnessed. Given that this performance is expected to deteriorate further with higher volumes, even at this very early stage, personal searches are already starting to be less attractive than the authorised alternative in terms of turnaround times and of course, unqualified mortgage lender acceptability.
January 1st 2008 – Myths and Realities
There appears to be a certain amount of confusion about the changes due in the new year. Some believe that all properties will require a HIP and a property cannot be marketed without all the documentation in place. As has already been seen, there remains no news on 1-2 bedroom properties and there is no requirement for the complete HIP to be available before marketing. From January 1st 2008, a HIP will need to be in place but if the searches and leasehold documentation are not available, the property may be marketed anyway. HIP providers must continue to try and obtain outstanding information, but a property may be marketed with just an EPC, title information, index and sale statement being available.
HIP Knowledge – A resounding success
Since launching our new HIP Knowledge (http://www.thepartnershiplimited.com/html/faq01.html) a week ago, we have received over 6000 enquiries and the feedback has been extremely positive. The knowledgebase goes beyond the often out-dated and trivial “what goes into a HIP” type of “Frequently Asked Questions” and provides an up-to-date and useful resource for agents and solicitors looking for answers on more indepth topics. If you have any questions that you do not see on the site, please email us on info@thepartnershiplimited.com and we will add it to the lists.
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