However, both the National Association of Estate Agents (NAEA) and the Royal Institution of Chartered Surveyors (RICS) both reiterated its concerns for the legisaltion.
AHIPP said it had written to the Housing Minister to offer the strongest of reassurances that it is ready to deliver HIPs effectively and efficiently as of 1 June.
The AHIPP letter, which was signed by over 100 industry members and backed by 1000s of individuals, was sent to dispel in particular, a number of myths raised in recent statements.
AHIPP Claimed government research published in January provided ample evidence that home buyers and sellers in England and Wales suffer with regards to cost and stress due to the currently broken house transaction process, a process which up until now, industry has failed to rectify.
AHIPP - Myths dispelled
Any market impact due to the introduction of HIPs is likely to be minimal and short lived. There is general agreement across the industry that there may be a slight increase in listings in May this year as estate agents encourage homeowners to list their properties before they are required to have a HIP from 1 June. This may generate a small overhang of property listings, although this is unlikely to be substantial due to the fall in properties coming on to market at the present time.
The suggestion that HIPs will deter sellers from entering the market because of cost was deemed as “frankly absurd”. The overall cost of a single transaction today runs to over £5,500, and a HIP with an EPC will increase this by less than £200. In fact, overall there is likely to be no cost increase to the homeowner as HIPs will help to drive out the cost of failed transactions from the market.
The EPC – the impact of a delay
Research carried out by AHIPP suggested, if even just 10 per cent of consumers opt to follow the energy saving guidelines contained in the packs, C02 emissions could be reduced by as much as 320,000 tonnes every year. Those calling for the delay in the introduction of HIPs are effectively calling for a delay in the potential savings of over 26,000 tonnes of carbon emissions every month.
Industry stands ready to deliver
There will be more than sufficient capacity amongst HIP providers to meet the demands on 1 June 2007. Industry has assured government there will be a sufficient number of Domestic Energy Assessors and Home Inspectors, ready to deliver EPCs and the projected voluntary demand for Home Condition Reports.
Mike Ockenden, director-general of AHIPP, concluded: “Our recent letter which was sent directly to Yvette Cooper offers unequivocal assurance from the industry that it is ready to offer packs as of 1 June. Calls from those who wish to see delays, for whatever reasons or vested interests, should be ignored by the Minister, who should feel confident in delivering this consumer and environmental reform on 1 June.”
However, the NAEA, along with RICS, the Council of Mortgage Lenders (CML) and the Law Society, said they had also written to the government requesting a meeting to discuss their concerns over HIPs.
According to the NAEA, the Housing Minister responded to the detailed letter refusing a group discussion with leading industry experts. This prompted a further letter, addressed to Ruth Kelly, the Secretary of State for Communities and Local Government, also copied to the Prime Minister and the Chancellor, asking the government to reconsider the legislation. The stakeholders are still awaiting a reply almost two weeks later.
The NAEA supports the Government in the introduction of the Energy Performance Certificate (EPC), and is pleased to be an awarding body for the qualification of Domestic Energy Assessors (DEA). However, concerns remain as to the likely shortage of assessors in many parts of the UK by 1 June. It is the NAEA opinion that the EPC would serve best if it were to be produced before exchange of contracts, and that it does not need to form part of the HIP.
According to the NAEA, there is substantial public and property industry support for its position. In January, the NAEA launched an e-petition against HIPs on the 10 Downing Street website. The petition has received over 7,600 signatures, clearly demonstrating to the government that these concerns are widespread and need to be taken seriously.
Charles Smailes, president of the NAEA, commented: “We support the government in their policy objectives, to improve the home buying and selling process, and are prepared to work with them on this. We are disappointed that they do not see the importance of a group meeting with the stakeholders.
“However, it is clear that there is considerably more work to be done if HIPs are to be a workable solution, and there is simply not enough time for the issues to be resolved before 1 June. In their current format, HIPs will prove to be ineffective and vastly impractical.
“NAEA members involved in the trials are already confirming some of our worst fears. One member reported having requested 25 packs, almost a month later he had not received a single HIP. This will clearly have a devastating impact on the residential housing market, slowing it down considerably. I once again urge the government to work with the stakeholders and take note of our very real concerns.”
