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Software glitches threatened yesterday to scupper the launch of Home Information Packs in June as ministers came under further pressure to delay the proposals.
Although the Tories failed to block the reforms in the Commons, the continuing dispute over the packs led to calls for a 12-month postponement.
The Times has learnt that faulty software has thrown many of the training programmes for energy inspectors into disarray. It emerged yesterday that IT programmes to measure home energy ratings have failed to analyse the correct data.
One estate agent told The Times that a huge number of energy inspectors will have been trained on faulty software. Although two suppliers have had their software approved, two others — Property Tectonics and Northgate — are said to be still waiting, two weeks before the deadline on June 1.
Critics, including the Consumers Association, said yesterday that pilot schemes to test the packs had not been evaluated and that the proposal should be delayed for at least a year.
The Government is facing a legal challenge over the plan after the announcement by Royal Institution of Chartered Surveyors (RICS) that it was seeking a judicial review regarding a lack of consultation.
The latest problems came amid reports of a row between Ruth Kelly, the Communities Secretary, and Yvette Cooper, her deputy, over the Home Information Packs. Mrs Kelly wanted to scale the proposals down, but this was strongly resisted by Ms Cooper, the Housing Minister, who reportedly threatened to resign.
A spokeswoman for Mrs Kelly last night denied that there had been a row with Ms Cooper. “It’s all a load of nonsense,” she said.
After June all those putting their homes on the market will be required to provide the information packs, with details of land searches, title deeds and an energy performance certificate. The proposal had intended to speed up house sales and to help first-time buyers. Ministers are now focusing on the energy certificates, claiming that they will reduce carbon emissions.
The Tories were defeated yesterday by 306 vote to 234 in their attempt to annul the regulations for the packs.
Michael Gove, the Conservative housing spokesman, said that the packs were waste of time and “would do nothing to take the strain out of home-buying, and only add to the cost and complexity of buying a house”.
“Ministers have botched this process from beginning to end. They have ploughed on, regardless of the potential damage that they are doing to the housing market at an acutely delicate time,” Mr Gove said.
John Prescott, the outgoing Deputy Prime Minister, accused the Tories of hypocrisy by opposing a measure that was designed to boost energy efficiency.
Ms Cooper claimed the plans were sensible and insisted that the Government had made changes in response to consultation. “We do think that these are the right measures to introduce this summer,” she said.
The housing industry, which claims that the packs may trigger a market collapse, remained opposed. Nicholas Leeming, director of Propertyfinder.com, said: “The original policy objective to speed up the home-buying process has been lost amid the hot air of an environmental battle. Quite apart from the cost, the reported lack of energy inspectors is likely to cause serious delays for people trying to sell their home. We are currently seeing a rush to beat the deadline, but post June 1 we are likely to see the number of properties on the market to go into tailspin.”
Dave Timms, of Friends of the Earth, said: “It is crucial that this vital measure is not delayed. We hope the Lords will also give their backing when they vote next week.”
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Graham of Wigan appears to miss the point that no one should buy a house on the strength of a Home Inspection Report (a superficial report produced by, generally, non-experts). A buyer should almost always have a full structural survey carried out, and that will render the HIR worthless, a waste of money.
There is a huge danger in HIRs, in that they will lull some buyers into believing they don't need structural surveys.
DaveH, Newbury, Berkshire
All these people who are seeing with tunnel vision . The two main parts to the HIP are; Energy performance Certificate ( required by law ) and the Home inspection ( a mini survey not required by law yet ) . The government planned to bring in the Home inspection slowly to see if people had it done on a voluntary basis . This was the main bit of the pack that could save people millions by providing the basic details up front . It would cost £300 - £500 . The seller would pay for this , YES ! But the seller is also usually buying a house !! So the seller is also given a report free of charge for the house they will be moving into !!! This has not been made law yet . However the same applies to the energy performance certificate . Everyone has one done so you may pay for one to give to your buyer , but you are given one free of charge when you buy your new property !! So everyone is given the information they need to make changes ( if they choose to ! ) , saving cash on energy bills !
Graham, Wigan, Lancashire
Hips will be a total waste of time and money as it will slow the process down and put up costs, but on the plus side it will employ a few extra people. As to the energy performance certificate just remember that the most heat efficient house is a house that does not have heating and the best light bulb is no light bulb at all. Its all going to be so much fun.
Paul Spankie, Sudbury, Suffolk.
DaveH, Newbury said,
"In any case, who on earth will buy or reject a house on the strength of an EPC?!"
It's true not many people to begin with will probably buy or reject a house on the strength of an Energy Performance Cirtificate (EPC) but you can bet that it won't take long before the EPC will be used as a powerfull bargaining chip in the house buying process and this will ultimatley benefit the environment.
MartinR, Bristol, Bristol
A house built in the 1930's (very common in the outer London area) will be far less energy efficient than a brand new house built to current regulations. Should all older houses be demolished and rebuilt or will this be a waste of energy in both senses?
L. Hill, Sutton, UK
Light bulbs make at most 2 point difference to the energy rating (on a scale of 1-100). 0 point for no energy savers. 1 point for 20-80% 2 points for up to 100%.
If a fitting has them now , the new owner will probably put them back in if you taken them with you. This is because they only cost £1.25 at the supermarket and swapping back is a no brainer.
Cavity wall insulation on the other hand can get you up to 20 points depending on the age, size and other factors of your house. There's a big difference to knowing if you've got it, and what difference it makes to your bills. When you realise it costs less than £400 and can save you £200 a year.
Which is what the EPC is designed to show. It put pounds note figures on what running costs are likely to be based on "average occupancy" - tailored to your specific house. Current bills are no good, as you may leave the heating on all the time or never switch it on.
Simon Heath, Tamworth,
The EPC is a joke. Any fool of a buyer can see whether double glazing is installed, what sort of light bulbs are in use, whether the hot water cylinder is lagged and how much loft insulation is in place. It isn't difficult to ask basic questions such as whether the boiler is of the condensing variety, and demand to see certificates such as cavity wall insulation.
A much more important question that the EPC won't answer: "What are your energy bills?".
In any case, who on earth will buy or reject a house on the strength of an EPC?!
A very silly waste of a lot of money.
DaveH, Newbury,
So Jayne of Mayfair is prepared to rely on a Housebuyer's Report carried out on behalf of the seller rather than a Structural Survey carried out on behalf of her? The agents will be rubbing their hands.
David Haverty, Newbury,
We do NOT want HIPs. The onus on the buyer to examine and assess value for money on any property he/she is interested in works okay.
If we don't want HIPs why do we all follow like sheep down this road?
When I come to sell my property I shall just put it on the market without HIP. If a buyer agrees to buy subject to HIP then thats OK, I will spend the £600 plus.
If a buyer is interested in buying a property I imagine the last factor in decision making will be the HIP.
Without a Buyer I could spend £600 on a wasted offer to sell. What if the sale takes a year (Not unknown), will the HIP still be valid? What if I have to withdraw (illness/change of circumstance) then I am £600 plus out of pocket for nothing.
We really ought to stand up to these weird people who dream up unworkable or bureaucratic schemes and then try to foist them on everyone else
Dudley Price, Lymington, England
The question of who will be doing the Energy Efficiency certificates is the reason this could end up a shambles. I was on the website where you can lacate a 'local' qualified person to do this. I typed in Twickenham 'sorry no results' I tried Kingston the same, Uxbridge the same! You can also search by surname to find an inspector. I typed in Smith with no specific area and got one an Ian Smith. If there is one qualified Smith in the whole of England and Wales that is real cause for concern.
Paul Morgan, Hampton, London
HIPs began there long down hill trip the moment a valuation was taken out of the report. The CML has never been fully committed to their introduction, nor has the Law Society joined in the process. The real delay in the house buying process occurs when the lawyers get hold of the agreed transaction and apply constructive criticism, but unless solicitors streamline their procedures the UK system of completing a transaction will never speed up.
Inspectors are at extreme risk if they make mistakes such as the ones discovered by Humberts recently. They are open to being sued by the vendor, the purchaser and the mortgagee! They need extensive PI insurance in place.
Michael Edwards, Llangollen, Denbighshire
I firmly believe that HIPS will not only speed up the home buying process it will also give the homeowner more control! The opposers to HIPS ie. RICS, NAEA etc are protecting their own interests despite the pretence of 'doing what is right for the home owner'. By continuing to resist change they are damaging the property market. It is an interesting fact that RICS were invited, by the government, to consult on the introduction of HIPS but declined feeling it would fizzle out and now that the June deadline is approaching they are throwing all the 'toys out of the pram'.
Jo Turner, Crawley, Sussex
Andy Patrick should keep in mind that most houses take several months to sell. Is he really prepared to rely on searches carried out months earlier? Madness.
DaveH, Newbury,
Would not a simple answer be to allow 'self certification' at the lowest level of efficiency?
This would solve the problem at a stroke. It would also solve the problem of people who are 'bricks rich and cash poor' who cannot afford a survey confirming that their house is not efficient.
Too simple for the politicians, or no extra money for the 'professionals'?
J D S, Cardiff, Wales UK
This is just another example of this government trying to rule our lives and play a big bullying brother. Nobody that I know can see how this pack will help solve 'the carbon efficiency' problem of a sale-able property. The property in question may not be suitable for efficiency measures.
Quite frankly, I would not want fraudulent people and time wasters seeing the details of my deeds, past property conversion plans, etc.
What guarantee can this government give that these details will not be used to obtain finance, status and say a passport.
Other measures to stop time wasters should be introduced first, say a non returnable deposit by both parties, sealed bids.
Details in Home information packs cannot possibly show that mortgages and charges or loans held against that property are in current.
Information on neighbour disputes are prone to error as with a change in ownership many disputes are irrelevant.
Laurie, Guildford, Surrey
I don't know why everyone is going mad over HIPs... When you buy a house you generally have surveys done before you complete so why does it matter if you have to pay for your own houses' pack? Your moving to a home that has paid for theirs!
Jayne, Mayfair, London
The original intention of the HIP has been lost completely. So why not announce a delay in its introduction but confirm that the EPC will be mandatory for all properties to be marketed with effect from a date say 6 months hence. That way Evette Cooper can save face and the public can save their money.
VIVIENNE IVES, Nottingham, UK
Having seen a few reports about how the energy report of the HIPP is 'concocted' this adds no value whatsoever to the house buying process.Apparently you get better points for energy savings if the inspector finds that you are using energy efficient light bulbs.So what?Will the new buyer use them as well?Or vice versa.Double glazing, cavity wall and loft insulation yes,but thats already stated on the existing information/survey. Its just another example of government interference and dictate to us how to lead our lives.How about saying that every (used) car sold has to be roadworthy?Now that would be a useful idea;so maybe all these 'energy inspectors' can do car MOTs instead?
peter, Birmingham, UK
Just another tax !
jjones, west mids,
What software glitches would they be? The final Energy Performace Certificate algorithm was only released this week by BRE (the government appointed agency). Once included in the EPC software (regardless of who sells it) it will mean the same accurate result. Incorporating this algorithm is not difficult and updating exsisting software is similarly not difficult. The training software that has been used to date will vary between different suppliers because different assumptions will have been made. I have used two EPC software packages and I am qualified to carry out the EPC survey.
Steven, Cambridge,
Well... I've been listening and reading with interest the debate around HIPS for many months. I have to say that I cannot see the HIP actually achieving its objectives (i.e. speed up the process) and in many cases I fear it will slow the process down as the legal cogs will turn even more slowly as the people involved in the transaction will argue over the usage of the HIP data (which means the seller rather than the buyer will now be paying for local searches etc.)
So should we be going ahead ... NO.
Will the government listen to the feedback from the trials and the market ... NO.
So what can we do but hope that market forces come into play, meaning a blip in sales is very possible but the outcome may be the government reversing this flawed decision
Nick Levy, London, London
The software is new dated from 2005 - 'course there are problems, MS Windows has been running for over a decade and still problems with that ! The problem with HIP's is that every part of the British property industry has a view - and we have a society of moaners and wingers great at pointing the finger and short in support and solutions.
Our software is fantastic and does a great job but its being developed and evolving on a daily basis by a software company handling over 2m mortgage transactions annually !- but still it develops.
Our company (7Side Ltd) has been prodicing conveyancing searches (now HIPs) for over twenty years - and whether HIP's are shelved or not makes no difference to us. But I can say, quite objectively, the extra cost to a home seller is about £150 - that's all. First time buyers pay NOTHING - Isn't that great - and a green element added - to reduce energy consumption and save money - how can that be bad??? Let's start looking at facts not myths.
Victor Watson, Cardiff, Wales
All the searches included in the HIP are currently purchased by the buyer (sometimes more than once). The only extra cost is the production of the HIP itself (a binder and an index), and the Energy Performance Certificate (EPC). The EPC is required by European Law and the property sales and rental market is the most efficient way of collecting data produced by unbiased trained energy assessors, not people working for companies with a vested interest. Using the property sales and rental market as the data collection method is also the method prescribed in the Europen legislation.
It is quite ironic that until recently the property industry was citing HIPs as a driver to increase prices by reducing supply. Now the industry still believes HIPs will reduce supply, but bafflingly now claim that this supply shortage will cause a price collapse.
Surely if house prices are to fall then risky lending, high asset inflation and high interest rates will drarf HIPs as the major causes?
Andy Patrick, Bath,
In view of the shortage of inspectors to do the energy performance cert (only 80 for the whole of London so far?)
How long will a seller have to wait before the pack can be completed? Two or three months? How is that supposed to speed the process? And all for something which will make not an iota of difference. Would you fail to buy a house you liked and could afford because of it? You would not.
By the way the usage Programme in the context is fine, a programme is not just on TV I'm afraid, look in a non-US dictionary.
alexandria, Sheffield, UK
It's programs, not programmes. A programme is what you watch on TV.
John C, Warwick, UK