HIPS – Facts & FictionIsn’t it just larger houses that need a HIP?On 14th December 2007 HIPS rolled out to the whole market, not just larger houses – even bedsits for sale need a HIP. If you were marketing your 2 bed or smaller property prior to 14th December you have avoided the regulations. But the holiday house I am selling is exempt isn’t it?Until October 2008 if the property use is restricted under local planning regulations to holiday or seasonal occupancy it is exempt. If it is a normal house or flat which just happens to have been used as a holiday home for years, it will still need a HIP. Static caravan homes are exempt. What are the other exemptions?Exceptions to the HIP regulations (most only until 01 October 2008) -
I am marketing my house privately so I don’t come under the HIP regulations?Marketing a house yourself is not a private sale – under the HIP regulations a private sale is where no marketing takes place at all and an individual, friend or relative approaches you with an offer. Even a notice in your window or a card on a shop notice board is marketing and you will need a HIP. If it is a private sale you will still require an energy assessment (EPC). If I build a house myself and sell it do I need a HIP?New builds (self build or otherwise) - need a full HIP since April 6th 2008. The EPC within those HIPs must be an On Construction EPC. I am renting out my mother’s house, do I need a HIP?Rented properties do not need a HIP – however since October 2008 they will need an Energy Performance Certificate (EPC). This document last for 10 years and needs to be given to new tenants, not replaced. To find a local DEA look in our Directory. HIPs are complicated so do I need a legal expert to put it together?Not generally. Although some of the key documents are legal searches and reports, some of the information is what you would provide about your property anyway during the conveyance process. In fact in some very straightforward cases some people are able to compile their own HIP (see the template documents are available on www.homeinformationpacks.gov.uk). The main report is the Energy Performance Certificate (EPC) and that can be ordered directly from our members. However some properties can be more complicated or perhaps unregistered at the Land Registry and it will need an experienced HIP provider or solicitor to compile the HIP. Do I have any say in where the HIP is ordered from?Yes, you are the client! A HIP does not have to be ordered through your estate agent. In fact many of them would prefer to have very little to do with the process as their area of expertise is selling houses not collating documents and reports. Many of our members are also HIP providers and can offer a very personal service and a very cost effective HIP solution. But one estate agent implied that I could only use their HIP.The Government says “Any estate agent has a duty to ensure that they are complying with HIP duties. There is no reason why an agent cannot rely on a HIP provided by the seller, a different estate agent or a HIP provider other than the one they would normally use, as long as they are content that it is compliant. Further information can be found on our website: Some estate agents prefer to offer their own in-house HIP, or they have a financial agreement with a national HIP provider to offer theirs, which can make life simpler for the agent but any HIP that meets the regulations is perfectly legal and acceptable. My agent has offered me a free HIPIf it really is a free offer then that is a good deal, however the devil is in the detail! Most cut price or 'free' hips are tied in to either you using a specific conveyancing firm, higher sales commission on your property or if you move to another agent you may then be asked to pay a 'disbursement' that covers the costs the agent has incurred - i.e. the HIP. If I order a HIP directly will I have forms or online orders to deal with?Some HIP providers only provide an online order option but others will contact you by phone or even come round to see you. There will be about 10 questions about the age, type and size of your property and if it is freehold or leasehold - but even that we can research fairly quickly if you don’t know. You will need to confirm your contact details, method of payment and that you want the order to proceed. In fact most of this is actually going to be asked of you by anyone who orders the HIP on your behalf anyway. Will I actually get any documents for the money I am paying?The HIP does not have to be a paper document. In fact they can be the size of a small telephone directory and very expensive to print and post out. Most agents would need a small library in which to store the HIPs for all the properties on their books! Most HIP companies are producing a HIP on a CD or as a purely online database HIP where all the component documents are downloadable. Sometimes the HIP provider or agent will print you off an extra copy if you wish. If you just want to see a copy of the EPC you can ask for the 'Report Registration Number (RRN)' and download it from the Government site www.hcrregister.com My house has been on the market before HIPs came in. If I change Estate Agents now, do I have to get a HIP?If your house has not been taken off the market i.e. continuous marketing has occurred, then no, you will not need to commission a HIP. If, however, there was a break in marketing you will need to supply a HIP. My house was taken off the market as it was under offer but the sale has fallen through, do I now need a HIP to remarket it?If your house is remarketed within 28 days of the sale falling through you do not need a HIP. Will the buyer's solicitor accept the search documents in my HIP?To some extent that depends on the solicitor and the type/age of searches included in the HIP. Most HIP companies are using the versions of local searches done by Personal Search Agents. Some solicitors prefer the full official searches done directly by the local council. In cases where a property takes a long time to reach the conveyance stage the searches may need refreshing but this is usually done by the Buyer’s solicitor at the Buyer’s cost. There is no legal obligation on the Seller to refresh them./p> The Energy Performance CertificateWhat is an EPC?The Energy Performance Certificate EPC, is part of the Government’s commitment to reducing carbon emissions. It looks at how efficiently your home is heated and how it retains that heat. It also assesses the carbon emissions of the property. The EPC assessment, which can take up to an hour depending on the size of the property, can only be conducted by a qualified and licensed Energy Assessor or Home Inspector. The Assessor mainly collects data which they then enter into a computer programme back in the office, which works out the rating (A-G) for your property. This is shown on a graph like the ones for fridges. The EPC also makes some recommendations on improvements that can be made (some cheaply) to improve your rating and save you money on fuel bills. Information about improving the energy efficiency of your home can be found at www.energysavingtrust.org.uk What properties require an EPC?Since October 2008 almost all residential or commercial properties will need to have an EPC when they are sold or rented. The EPC will last for 10 years and only needs to be shown to new tenants. There are some exceptions for very small or temporary buildings, or some religious buildings. Do I need the heating on and have all my old bills at the ready?The assessor does not test your heating system or fires (no draft tests). The EPC does not require any past bills as it uses 'standard occupancy' rules regardless of how you use the heating. This gives a standardised result across properties of a similar age, size and construction to enable comparisons to be made. The boiler manual would be useful though. How long will the EPC Assessment take?This depends on the size and complexity of your property. As a guide a standard construction 2 bed house or flat should take no more than 30 minutes, with larger properties taking up to an hour. Very large properties or those with complicated layouts, multiple extensions, extensive glazed areas, conversions or unusual heating systems can take much longer. Once they leave your property the job is only half done though, as they will then take a similar length of time to do the calculations, input the data into their computer and upload the EPC to the Landmark Register and your HIP provider. What will they need to see?The assessors will need to see the heating system, any hot water tanks, meters and insulation, so you will need to be able to give them access to lofts, cellars or garages. Technically if they can’t see or measure insulation or see good physical evidence it is there then they should disregard it. This is important when it comes to a sealed loft or cavity wall insulation. Documents such as the double glazing FENSA certificates would be useful to see, or planning approval/invoices for extensions or improvements. The EPC is wrong – its says I have wooden floors when they are flags!The software results can sometimes throw up anomalies especially for very old properties or homes with non-traditional construction or heating systems. It is not the assessor that awards a rating personally. The software makes some assumptions based on its age and the building regulations in force at that time. These assumptions cannot be overridden by the assessor. Hopefully s/he will be able to talk you through the reasons for the results. They can also submit a side letter to go with the HIP. Can I do anything to improve the EPC result prior to the assessment?The EPC will make some recommendations on measures you can take to improve the energy efficiency of your home, mainly as a guide to interested buyers as to what the property could achieve. However, if you want to maximise the EPC result there are some cheap and quick things you can sort out before the appointment (depending on the time available):
Information correct as at July 2008 E&OE. Please check details with your HIP provider, Energy Assessor or at www.homeinformationpacks.gov.uk. |
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