Home Information Packs (HIP)

After our recent article,  should i train as a domestic energy assessor? which has received a massive number of comments and strength of feeling within the responses; we have decided to follow this up with the latest announcement by the Government.

The Government periodically announces combined numbers of Domestic Energy Assessors and Home Inspectors and breaks the figures down into the stage they have achieved at the time of reporting. The numbers continue to rise from the last published figures on the 6th March 2008. As of 23rd May 2008 the official numbers are:

Accredited - 7,930 (increase of 829 from 6/3/08)
Qualified - 1,464 (passed exams and qualified, but not yet become accredited)
Passed exams - 4,816
Total in system who have passed exams or progressed further - 14,210 (increase of 2,784 from 6/3/08)

It is worth remembering that these figures do not show those that are currently practicing. It is anticipated that both Domestic Energy Assessors and Home Inspectors (whom many have never carried out enough Home Condition Reports even to regain a fraction of the training costs) have left the industry. It is sad that these people have been unable to survive within the industry; often citing a lack of instructions and income as the main defining reason for leaving to find alternative employment.

We have also included the regional breakdown figures of DEAs/HIs accredited with an indication of the increase of numbers since 6th March 2008.

North East 368 + 22
North West 947 + 102
Yorkshire & The Humber 582 + 45
East Midlands 618 + 83
West Midlands 743 + 73
East of England 789 + 61
London 644 + 61
South East 1289 + 124
South West 1021 + 111
Wales 426 + 50
Unknown 503 + 97
Total 7930 + 829

Industry professionals continue to believe that a realistic number of Domestic Energy Assessors (DEA) required is in the region of 2500-4000. It is hard to place a figure on required numbers of Home Inspectors (HI) as the Home Condition Report (HCR) which they were originally expected to complete continues to be entirely voluntary with no major signs in it becoming manadatory within the Home Information Pack.

For those DEAs and HIs currently practicing it is causing great concern that these numbers are allowed to grow at such an alarming rate. But what can be done?

It does appear that there are training providers that are still successfully ’selling’ the DEA dream, of which realistically how many have been achieved?

Is it right that training providers are allowed to continue to provide training courses to people who will in most cases not be able to secure work once qualified?

With the above facts, it begs the question when will the expanding numbers of DEAs cease?

It is fair to say that the Royal Institution of Chartered Surveyors (RICS) and the National Association of Estate Agents (NAEA) have never been the greatest admirers of Home Information Pack legislation. It is envisaged that this week they will combine efforts when putting their views forward to the Government to attack HIPS once again.

The latest stance is one of focussed criticism towards the searches within the Home Information Pack whilst seemingly and suprisingly asking for some aspects to remain and apparently agreeing that the planned Property Information Questionnaire (P.I.Q.) would be useful.

RICS’ director of external affairs, Gillian Charlesworth, said: “These legal documents (searches) must be taken out of the packs and left to buyers and their advisers to obtain at the appropriate time during the transaction.” RICS wants HIPs to be replaced with a voluntary report as per the Carsberg report.

Peter Bolton King, chief executive of the NAEA, said: “With the economic situation worsening and the property market still suffering, we are calling on the Government to take urgent action on HIPs.”

He said a simplified pack could include a sellers’ questionnaire, an improved Energy Performance Certificate and the Land Registry title and plan.

It maybe of interest that this is almost identical to what is planned to happen. At the beginning of September the assessment methodology RdSAP is due to be improved to make the Energy Performance Certificates more accurate and include further parameters that are not currently taken into account.

Also, recently the Government has entered into a consultation process around the planned format of the Property Information Questionnaire (P.I.Q.), which is due to be rolled out on the 1st January 2008.

Mike Ockenden, director general of AHIPP said:‘It is not necessary for purchase conveyancers to re-order searches, but even if they do, the cost savings from the inclusion of searches in HIPs far outweigh any additional cost. In other words, the inclusion of searches in HIPs save consumers money.

He said: ‘This is yet another attempt to play the ‘current market conditions’ card to derail HIPs. The inclusion of search information in HIPs allows potential buyers to be much better informed before they make an offer thus reducing the chance of transaction failure.

“HIPs as a product are not yet complete, but the issues in the process of buying and selling homes call for more information earlier and not less. It is disappointing that some professionals continue to try and sabotage a reform that is already starting to improve the home buying and selling process for consumers.”

In addtion to these comments it is worthy of note that both Local Authority searches and personal searches have reduced substantially in cost since the inception of Home Information Packs alongside evidence of quicker transaction times.

The Property Information Questionnaire (PIQ) has been announced as one of the next steps in progressing the Home Information Pack which will add further information and benefits to the existing HIP.

The Communities and Local Government has issued a consultation document as part of the new planned ‘mandatory’ documents. The consultation contains the following parts:

• the leasehold requirements in the Home Information Pack (HIP) (Part 1) - we will discuss in a later post which will follow
• the inclusion of the Property Information Questionnaire (PIQ) in the HIP (Part 2).

We will be considering and formulating our views on the questions within the paper over the coming weeks. HIP-Consultant.co.uk are interested in your views and welcome comments based on this consultation.

The Property Information Questionnaire (PIQ) is anticipated to be of a similar nature to the exisiting Home Use Form (H.U.F.).  The Home Use Form (H.U.F.) is currently an ‘authorised’ document though is rarely seen within Home Information Packs due to it not being compulsory.

The new Property Information Questionnaire (PIQ) will be mandatory and planned to be easily completed by the home seller; not requiring help from a professional.

It is proposed that it will include:

• Access arrangements
• Utilities/services and details of provider
• Council Tax band
• Boundaries
• Changes to the property
• Parking arrangements
• Damage to the property
• Leasehold information

Within the consultation a draft Property Information Questionnaire (PIQ) has been produced.

The consultation process seeks answers and feedback in relation to the draft included above. The main 2 questions which will stimulate debate are:

• Do you agree that the inclusion of a PIQ in the HIP would be a positive step in enhancing the information provided to the consumer?
• Do you feel the questions asked in the PIQ are the right ones?

The PIQ is not intended to replace the work of conveyancers and other property professionals, which will continue to be required as the transaction is finalised. Instead it is intended that it will provide prospective buyers with a simple summary of information to help inform their decision to buy.

From initial reading it seems to be in a easy, user friendly format and that most questions will be answered relatively easily if the right documentation is to hand. The HIP has been criticised at times for not providing useful information to prospective home buyers. The Property Information Questionnaire (PIQ) certainly displays the potential to provide information that would be of great interest to someone seriously considering an offer on a property and therefore welcomed.

The consultation closes on the 30th September 2008 with planned commencement of the new arrangements on 1st January 2009. We look forward to your thoughts and comments.

This week has been eventful for sure in the continued life of Home Information Packs. HIPS are now 1 year old and news headlines continue to be made from the debate on Home Information Packs (HIPS). Recently, significant reports of non-compliance of the legislation have come to light and been acknowledged by leading figures involved within the industry.

Yesterday, it was widely reported by many news agencies including the BBC that some agents, I must stress only ’some’ agents; are flouting the law and are proceeding to market properties without the legally required Home information Packs.

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Home Information Packs (HIPS) are now a year old this week. The past year certainly has been controversial at times for HIP packs as the legislation has been rolled out; which lets be honest was to be expected. Home information packs have been reported upon as often is the case in the UK press with a negative slant. The legislation has unfortunately become a ‘political football’ with the debate showing little signs in slowing.

Home information Packs were designed to provide information to the home buyer, speed up transaction times and reduce the number of failed completions. Home information Packs or as they will be known Home Reports are due to be implemented in Scotland from December this year.

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The Carsbergy Review, written by the author Sir Bryan Carsberg is recommending a  number of reforms for the property buying and selling industry of the residential property sector in England and Wales.

The Carsberg Review was commissioned by the Royal Institution of Chartered Surveyors (RICS), the National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA). This fact has brought into question the independence of the report and the following findings contained within it.

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The domestic energy assessment seems to still hold myths about what is and is not invloved. We receive questions and concerns from owners fairly regularly. So we have written this post to help explain what an Domestic Energy Assessor (DEA) will be looking at during the visit.

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A new £10 million package of measures to support home owners who may be facing difficulties with their mortgage, is announced today by Chancellor of the Exchequer, Alistair Darling and Housing Minister Caroline Flint.
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The Government today announced a package of measures to help ensure consumers are seeing the vital information in Home Information Packs and are receiving a higher standard of service in the home buying and selling process.
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The Association of Home Information Pack Providers (AHIPP) has welcomed today’s statement by Housing Minister, Caroline Flint.

The extension of the transitional arrangements covering first day marketing and leasehold documentation is a sensible move. It is encouraging to see that government recognises the issues around timely procurement of searches and leasehold information that Home Information Packs (HIPs) have highlighted, and are taking steps to address these issues by the end of the year.
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