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“Keep informed with news and announcements”
EPCs to last ten years
Wednesday 26th May 2010
Energy Performance Certificates may not be required each time a home is sold in future.
That is because the shelf life of an EPC has now been extended to ten years.
So, if a property sold today with an EPC comes back on the market within the next decade, a compliant EPC will already be in place.
The suspension order of HIPs and the amendment of the EPC regulations has an explanatory memorandum which says at Clause 4.7:
"The provision in regulation 11 of the EPB Regulations 2007 for an EPC to be valid for a period of three years in cases where a duty under section 155(1) or 159(2) of the Housing Act 2004 applies is revoked. This means that the validity period of EPCs for sales of residential property is, under regulation 11 as amended, now ten years. This is consistent with the validity period for EPCs for all other types of transactions covered by the EPB Regulations 2007."
Confirmation of the news has led to despair among Domestic Energy Assessors, who are predicting a decimation of their numbers and workloads.
It is also widely predicted that estate agents will go back to doing their own floorplans - work that had increasingly been done by DEAs.
NEWS FLASH - HIPs suspended
Thursday 20th May 2010
Home Information Packs have been suspended with immediate effect pending primary legislation for a permanent abolition.
CLG Secretary of State Eric Pickles said: "HIPs are history. This action will encourage sellers back into the market and help the market as a whole and the economy recover."
Housing minister Grant Shapps said: "This is a great example of how this new Government is getting straight down to work by cutting pointless red tape."
They made the announcement this morning at a press conference held at Bullman Booth estate agents in Battersea, London, owned by Philip Bullman.
Many jobs - up to 10,000 has been estimated - will now be at immediate risk and specialist HIP providers will fold, unless they are able to diversify.
However, there is no doubt that most estate agents will greet the suspension with relief.
For AHIPP, there was a surprising acceptance, although it made it clear there are still battles ahead.
Director general Mike Ockenden said: "We want to work with the Government and we want the consultation we have been promised. We are not suggesting that HIPs should be retained. AHIPP has accepted that they will be scrapped.
"However, we have been proposing for months that a legal pack - or exchange ready HIP - be instructed at the start of the sales process. We think it would be crazy to throw the baby out with the bathwater and remove at a stroke all the good things that have come about with HIPs, and the lessons we have learnt.
"If we do this, then the opportunity for reform will have been lost for a generation."
Nick Salmon, tireless campaigner and founder of SPLINTA, was absolutely delighted.
He said: "The ending of HIPs is a victory for the consumer, the estate agency industry and the SPLINTA campaign. We applaud the swift and decisive action of the coalition government and the contribution of the housing minister, Grant Shapps, who has always been clear about HIPs in his words and deeds.
"The chequered history of this flawed piece of legislation stands as a shameful monument to the ineptitude and arrogance of a succession of Labour housing ministers who failed to heed the warnings of those who actually know how the property market works."
Rightmove strikes deal with Google
Friday 29th January 2010
Rightmove has done a deal with Google maps, ahead of Google's own launch into the UK property online market.
The deal, announced yesterday with immediate effect, takes the property internet to a new level, with the two huge players now literally on the same page.
The deal also ends speculation as to whether Rightmove would co-operate with Google on a 'if you can't beat them, join them' basis. As a result of the deal, Rightmove becomes one of the largest users of Google maps in Europe.
From yesterday, Rightmove properties are now placed on a Google map on each 'detailed view' page.
However, the application will be expanded over the next month so home-hunters will be able to see initial search results plotted out within their search area - just as they will be able to do on the Google property mapping service.
Google's own offering, expected to launch in the UK in the first quarter of this year, is likely to be a search engine based on its maps. Property searchers would then be diverted to the agent's own website in order to see property details. The facility would be free for agents.
The Rightmove deal appears to try to head off this potential threat, relying on its own brand for property searchers, who would not only see the mapping but also the details of several properties - all on one site, as Rightmove does not divert to agents' own websites.
Rightmove has been running a new TV ad campaign and attracted over 1m visits in a single day for the first time this Monday.
A Rightmove spokesman told Estate Agent Today: "Google are about to launch their own UK real estate offering, which will be based on maps. Rightmove can now offer something quite similar.
"However, we have two very different business models: Google is a search engine, and users will click through on each property to the agent's own website. On Rightmove, users can see everything they want, all in the same place - not just the location, but the complete property details.
"We also liked the Google maps because they are the best maps around. They're clear and easy to view."
Sanjay Patel, of Google Enterprise, said: "With this technology on their site, Rightmove will be able to provide property searchers with a faster, more accurate and more comprehensive mapping system to help them find that perfect home even more efficiently."
Tories will put pledge to scrap HIPs in manifesto
Friday 10th July 2009
The Conservatives' promise to scrap HIPs immediately they get into power is to be in the party's general election manifesto.
The news was revealed by shadow housing minister Grant Shapps in a meeting with the chief executive of the NAEA, Peter Bolton King, and president Gary Smith.
Smith said of Shapps that he was extremely well briefed and that his approach "was in accord with ours on virtually every point" raised in the meeting.
Shapps also confirmed that the Tories will retain Energy Performance Certificates, whilst making them less bureaucratic.
He did not, however, offer any support for compulsory licensing of estate agents, letting agents and landlords. Smith said it was made clear that the Tories favour self-regulation. Only if circumstances necessitated regulation in the future would licensing be considered, but even then it would be a 'light touch' approach.
Other subjects discussed at the meeting included the difficulties of home buyers in obtaining mortgages, rates on empty commercial properties, and the problems for private developers in raising finance for housing projects which could lead to a shortage of supply of new properties when the market picks up again.
Smith said: "We came away with the feeling that the points we raised had been listened to and understood, and where we believed action was required it would be carefully considered."
UK interest rates lowered to 0.5%
Source: BBC News 5th March 2009
The Bank of England has cut interest rates to 0.5% - a fresh all-time low - and says it will now boost the money supply to help revive the economy.
Interest rates have now been reduced six times since October, and the latest half a percentage point cut from January's 1% had been expected.
The Bank said it would expand the amount of money in the system by £75bn in an attempt to boost bank lending.
This policy, so far untried in the UK, is called quantitative easing.
Buying assets
Quantitative easing is the process of increasing the amount of money in circulation in an attempt to revive the economy.
While the Bank will initially add £75bn, Chancellor Alistair Darling has given it permission to extend this to up to £150bn.
The idea is that if the amount of money in the system is boosted, commercial banks will find it easier to lend.
Quantitative easing is sometimes incorrectly referred to as printing money, but the Bank will not expand the supply of money by making new banknotes.
Instead, it will buy assets - such as government securities (gilts) and corporate bonds.
Similar measures were implemented in Japan at the beginning of the decade and are considered to have had limited success.
'Pleasantly surprised'
BBC economics editor Stephanie Flanders said that while the initial size of the quantitative easing scheme was smaller than some analysts had expected, "it's a lot more than dipping their toes in the water".
"Those who feared that the Bank would defeat the purpose of the policy by doing it only half-heartedly may be pleasantly surprised," she said.
Philip Shaw, chief economist at Investec, said that quantitative easing "should in principle encourage the banks to lend to private sector agents such as households and businesses, stocking monetary growth and stimulating activity".
Mervyn King, the Bank's Governor, sought permission from the Chancellor to start quantitative easing in a letter on 17 February.
In his reply, Mr Darling said that in the "current circumstances" the measures were now "appropriate".
Both letters were released on Thursday.
Rate cuts attacked
Business groups have attacked the recent cuts, saying they have done little to encourage banks to lend more.
Others argue that they are unfairly hurting the returns of savers.
"Today's decision is a kick in the teeth for savers who will see their already diminished interest payments fall even further," said Adrian Coles, director general of the Building Societies Association.
The Council of Mortgage Lenders (CML) said the latest cut would be a "double whammy for prospective mortgage borrowers".
"This latest cut presents immense challenges for lenders whose margins are already squeezed as a result of previous reductions, leaving little scope to lower discretionary mortgage rates further," said CML director general Michael Coogan.
"Savings are the lifeblood of mortgage lending, and unless lenders can offer competitive rates to savers their ability to offer new mortgages is restricted."
Ian McCafferty, CBI chief economist, said the continuing rate cuts were "becoming less and less effective as a means of stimulating the economy".
"Though this latest cut will help support business and consumer confidence, it is unlikely to have a dramatic impact on the cost or availability of credit," he said.
The Bank has had the room to cut interest rates because inflation has fallen on the back of reduced energy costs.
The most recent official figures showed that consumer prices index (CPI) inflation fell for the fourth month in succession in January to 3%, from December's 3.1%.
However, CPI inflation still remains above the government's 2% target.
Alan Cooke Joins The Globrix Revolution
Alan Cooke has become the latest company to join a new property search website that's taking the house-hunting market by storm.
All of the properties on Alan Cooke's books will now be available via www.globrix.com, opening them up to a massive nationwide audience.
Globrix is a new type of internet property search engine. It has one of the largest indexes of properties of any site and lets users search for homes by a huge range of criteria. On a normal property search site you're restricted to looking for homes by just price, location and number of bedrooms. Globrix changes all this and lets you refine your search to look for specific features (such as wooden floors or swimming pools), particular house types (such as bungalow or Victorian house) or even things like type of outdoor space or proximity to schools.
By joining Globrix, Alan Cooke is offering all of its sellers a new way of getting their property in front of thousands of potential buyers.
Daniel Lee, the CEO of Globrix, said: "It's great to have Alan Cooke on board - by joining the Globrix community they're becoming part of a new service that's going to revolutionise the way people look for homes. By including their properties in the Globrix search engine, Alan Cooke are making sure that they and their clients are making the most of the Internet when it comes to selling their homes - something that every seller needs to be sure of if they want to get the best price!"
A spokesperson for Alan Cooke, said: "Globrix is really shaking up the online property market and we realised that it was important that our clients get the benefit of what they're offering. Our vendors are highly impressed with the way properties are displayed, and we are delighted that users can now directly access our own very successful website either by clicking on the individual property or the Alan Cooke banner advert. "
Ownership
FAQs on ownership
What is shared ownership?
Shared ownership schemes let you buy a share in a property rather than buying all of it - so you only take out a mortgage on what you can afford in relation to your savings and salary.
You are then either given a low-interest loan by the government and housing associations to pay for the share you don't own, or you pay rent on it to a housing association, depending on which shared ownership programme you choose.
Who is shared ownership for?
Shared ownership schemes are designed for people who are unable to raise a large enough mortgage to buy a property outright - generally first-time buyers.
The government's scheme, known as HomeBuy, prioritises some buyers over others. People at the top of the list include keyworkers - those in "key" jobs such as nursing, teaching, firefighting and the police force - and people on housing association lists (those who are existing local authority and housing association tenants).
If you are not a keyworker you can still apply, as long as you are a first-time buyer who is unable to afford a property outright, although you will be lower down the priority list. The organisations behind shared ownership schemes say they are seeing increasing interest from the young graduate market and professionals on mid-incomes of £30,000 upwards.
Why are most shared ownership schemes in London?
Most developments are in London and the south-east because this is where demand for affordable homes is at its highest.
In London, applications for shared ownership schemes are managed centrally by Housing Options. You have to fill in a form stipulating which HomeBuy scheme you wish to use (see below) and outlining details of your salary and savings. Once your form is submitted you will be contacted for a full financial assessment.
Shared ownership schemes are in existence outside London, however, and your local housing association will be able to tell you about it. Details on finding the association in your borough are available from the Housing Corporation.
What schemes are available?
In 2006, the government tried to revamp shared ownership under a range of HomeBuy schemes, but some of them turned out to be flops.
There are now three main government schemes, all of which offer shared ownership for first-time buyers and key workers: MyChoice HomeBuy, OwnHome, and NewBuild HomeBuy. There is also a scheme for existing social housing tenants called Social HomeBuy.
MyChoice HomeBuy and OwnHome are the latest versions of shared ownership and were launched in this year's budget. They are sometimes referred to by their old name, OpenMarket HomeBuy.
How do those schemes work?
MyChoice HomeBuy
For: Keyworkers earning less than £60,000 and first-time buyers, prioritising those on housing association lists, followed by non-keyworkers earning less than £58,600.
How it works: Applicants can take out a mortgage on 50% of the value of the property they wish to buy. This can be from any high street lender.
Instead of having to find a deposit for the remaining share, buyers can raise up to the remaining 50% of the purchase price with a low-interest equity loan funded jointly by the government and a consortium of the eight housing associations involved with the scheme. In the first year the interest on this loan is charged at 1.75%; in future years it rises to RPI plus 1%.
Homeowners can increase their share in the property by 10% at a time by gradually buying more chunks, or staircasing up, as they can afford to do so. Remember, you will need to meet the usual costs of buying a home, including legal fees and mortgage application fees.
How to apply: Register on the Housing Options website, the central portal for shared ownership applications for people in the south-east. The online form will ask you to fill in your personal details and ask about your earnings and savings.
OwnHome
For: Keyworkers earning less than £60,000 and first-time buyers, prioritising those on housing association lists first, followed by non-keyworkers earning less than £58,600.
How it works: This scheme is run by housing and regeneration group Places for People alongside the Co-operative Bank. It allows eligible buyers to take out a traditional mortgage for a minimum of 60% of a property's value from the Co-op, while Places for People provides an equity loan of between 20% and 40% up to a maximum of £165,000.
On this scheme there is no interest to pay on the equity loan for the first five years. Between years six and 10 the rate is 1.75% a year, and after that it rises to 3.75%. After the mortgage deal has come to an end the borrower can remortgage away from Co-op.
How to apply: Call the OwnHome helpline on 0845 607 0110 or visit OwnHome.
NewBuild HomeBuy and Social HomeBuy
For: Keyworkers and first-time buyers, prioritising those on housing association lists.
How it works: Applicants take out a mortgage on a share of the property - they must be able to purchase between 25% and 75% of the total value of the property through the mortgage and any deposit they can afford to put down. The remaining share is rented from a housing association. Buyers have the opportunity to staircase up over time.
Unlike MyChoice HomeBuy and OwnHome, which let you pick any property (new or old) that is on the market, NewBuild HomeBuy will only let you buy new-build properties from specific developments in your area. Properties are usually, but not always, sold off-plan before the development is complete.
Social HomeBuy works in exactly the same way but is meant for existing social housing tenants.
Portals: Globrix leading the new challengers
Source: Estate Agency News
Agents sign up to advertise on News International-backed site
THE portal marketplace is by no means a static one as many agents are finding out by the number of places in which they now see their properties appearing.
In the 'good old days', the portals used to approach agents and come to them with a proposition to get you to add your properties.
Some were for free - in the first instance - such as Rightmove and Assertahome, later known as Propertyfinder. Others charged from the outset - Findaproperty charged £1 per property per week.
Now the new generation are looking at alternative ways of generating revenue and not necessarily charging agents directly for doing so.
The latest to make a significant impact is Globrix - www.globrix.com. The site was first launched in November 2007 after being founded by two technology experts with expertise in the algorithmic search area.
They hit the headlines with announcement of a funding deal with News International and are now starting to make an impression in the marketplace.
Property is key to the success of any property site. If a site only has limited property stocks, visitors know they have to go elsewhere to complete their search.
The technology that Globrix employs enables them to search agent websites directly and extract the information - in much the same way as Yahoo and Google do in their search engine technology.
The way it is done is simple in that it is equivalent to a single user visiting and requesting a property every five seconds or so.
Once the property data is extracted the user can access it in many ways as the search engine technology allows the use of keyword searches.
This can be useful if you have certain immovable criteria and indeed when narrowing the search from a long list or a crowded map.
Of course, Globrix offers a map search and the search can easily be modified.
A simple slider bar at the top of the screen controls price but the really clever feature is the use of expandable alternative control buttons in the left hand bar.
As well as the usual control over numbers of bedrooms and bathrooms and type of home, the keyword feature allows many different search options - and the number that are available with the feature.
Station and school searches are easily done and clicking on the smaller box in the corner can move the map search.
I found it very easy to use, informative and, of course, it links directly to the agent site so one can contact the agent direct and get more information.
However, at present, there are no e-mail alerts for property searches and to check for new property one has to go back to the site.
The standard new property alerts of the portals are invaluable to a home hunter - especially in a fast-moving market.
It appears as if one has to register on each individual site and that is not what most home hunters want to do.
The link with News International - Rupert Murdoch's media giant which owns Sky, Fox and domestic newspapers The Sun, News of the World, The Times and The Sunday Times - is helping to promote the site and Globrix have just announced that some key London estate agents including Foxtons, Knight Frank and Savills have become lead advertisers in the banner column alongside the search results.
Competition in London means that agents are always seeking ways of standing out from others.
But traditionally it has been much more difficult to persuade provincial agents to increase their spend - and certainly the good agents of Harrogate, Exeter and Tunbridge Wells do not appear to have been persuaded yet!
In time, no doubt, they might and there may even be a race to take the two limited positions for estate agents.
At the moment, the shareholder agents from Rightmove are blocking Globrix from crawling their site.
That may prevent Globrix achieving their aim to become the number one site for property numbers although they are getting the Countrywide properties now they are no longer part of Rightmove.
Agents can block the crawlers if they want but most sites are actually optimised to let the search engines gather information. Very few deny access to Google and the like!
The real test will be whether Globrix can generate sufficient impact with users. At the moment they hardly register on the internet marketing measurer Comscore.
Others, however, are making progress. Nestoria have moved up the rankings significantly so maybe Globrix will be able to as well.
Nestoria hit the top 15 in December and with recent links with even more portal providers and their newly-launched white label partnerships with Channel4homes and The Independent, they seem to be making significant progress.
As with Globrix, there is no cost to the agents whose properties are advertised on the site.
HIPs
Source: home-information.info
FAQs on compliance
We have been receiving feedback that some estate agents have questions about how to interpret the HIP regulations correctly. This issue of PROGRESS looks at frequently asked questions on compliance.
What constitutes marketing, and do 'informal or one-off viewings' trigger the HIP duties?
Section 149 of the Housing Act 2004 provides that a property is put on the market when the fact that it is available for sale is made public. A fact is made public 'when it is advertised or otherwise communicated (in whatever form and by whatever means) to the public or to a section of the public'. Communication of availability for sale by word of mouth or other means is therefore caught, and counts as marketing.
One-to-one sales that do not involve any other person and do not involve marketing to a 'section of the public' are not caught by the legislation. But section 159 of the Housing Act 2004 provides that where someone acting as an estate agent introduces a seller to a buyer as part of a business, that is treated as a 'qualifying action' which triggers the HIP duties.
This means that the HIP duties will usually be triggered where an estate agent, as part of his business, arranges 'informal or one-off viewings' of a property that is available for sale, or communicates this availability by any means to anyone as part of an attempt to sell it.
When should an estate agent show the EPC to a prospective buyer?
At the earliest opportunity.
Regulation 5(2) of the Energy Performance of Buildings Directive (EPBD) regulations requires the relevant person to make the EPC available to a prospective buyer at the 'earliest opportunity'. Therefore an agent who has a HIP (including an EPC) in his possession is under a duty to inform a prospective buyer who shows an interest in the property that the EPC (at least) is available for inspection.
What constitutes requesting or ordering a HIP?
The request must be made in writing* to a person who would normally deal with such requests (e.g. a pack provider company) in order to comply with the HIP regulations. It should be made in the appropriate format together with any payment or commitment to pay that is normally required. There should also be an expectation that the documents will be made available within 28 days of the first point of marketing and all reasonable efforts should be made to obtain the documents before then. Where the documents cannot be obtained within 28 days, the responsible person must continue to make reasonable efforts to obtain them as soon as possible. Therefore, if you are found to order the pack but not make arrangements for payment or make reasonable efforts to ensure it is produced in good time, this would be an example of non-compliance. In such cases, a £200 penalty could be imposed on the estate agent marketing the property and this could, in turn, lead to a banning order from the Office of Fair Trading if there were a number of such breaches.
* Unless it is an oral request made to the Land Registry under Land Registry Rules
To qualify for the exception for properties marketed before HIPs came into force, is it enough simply to have entered into a contract with an estate agent before the commencement date?
No. The exception only applies where the property was actively marketed for sale before the appropriate commencement date (see below) and you may be asked for evidence of this. If it was marketed on or after the following dates and you have not commissioned a HIP, you are not complying with the regulations.
- 1 August 2007 - for sales of homes with four or more bedrooms
- 10 September 2007 - for sales of homes with three bedrooms
- 14 December 2007 - for sales of homes with two bedrooms or fewer (or none).
If I agree to an estate agent showing potential buyer/s my property, even though we don't have a written legal agreement, do I need a HIP?
Yes. Provided the agent is marketing the property on your behalf, a HIP would be required and it would be the responsibility of the agent to ensure this.
Not having a HIP in place or ordered could lead to a £200 penalty for the estate agent marketing the property. This could lead to a banning order from the Office of Fair Trading if there were a number of such breaches.
I receive e-mails about properties from a company that passes on information about homes where the seller wants to sell quickly. Are they required to provide me with a HIP?
Yes. Provided the information is passed to more than one person, that would be marketing to a 'section of the public'. A HIP would be required from whoever is treated as responsible for marketing. This would be the seller himself if the company was not acting as an estate agent on his behalf.
Do EPC graphs need to be included in the estate agents particulars?
Yes. The rules require the Energy Performance Certificate to be attached to the written particulars or, alternatively, for the EPC graphs to be included in them. This applies to electronic copies of particulars posted on websites as well as paper copies.
Example particulars, including the EPC graphs, are available at:
http://www.home-information.info/doc?id=133
If a seller instructs multiple estate agents do they all require a copy of the HIP?
Yes. Even if the HIP is ordered through one agent all agents should:
- hold evidence of the HIP being commissioned before marketing begins;
- hold a copy of a compliant HIP and make it available on request to prospective buyers or enforcement officers; and
- include the EPC graphs on particulars.
Failure to comply with these requirements could be treated as a breach of the duties.
If I change estate agent, is the HIP commissioned by the first agent valid for use by the new agent?
Yes. A HIP is valid as long as it complies with the regulations and there has not been a break in marketing. However, whether the vendor can take the HIP with them will depend on the ownership of the HIP and the commercial terms that the vendor agreed with their estate agent or HIP provider.
Common payment options and terms offered in the market include:
- Upfront Payment - If a seller has paid for a pack up front in full they would expect to be able to take the HIP to their new estate agent
- Deferred Payment - i.e. an agreement is made to defer payment for the HIP to a later date. Once the seller has paid for the HIP they should be able to take the HIP with them to a new agent
- A 'free' HIP included in the estate agents fees - Some estate agents offer free HIPs and may retain ownership of the HIP even if the seller decides to change estate agents. Some agents will release the HIP if a withdrawal fee is paid
Bulletin and round-up
Guide to Financial Support for Improving Energy Efficiency
CLG and the Energy Savings Trust have produced a short guide for householders in England and Wales on ways to cut down on energy bills and the financial support available for implementing energy efficiency measures in their homes. This includes the support available for acting on recommendations in the EPC.
Multiple hardcopies can be ordered free by e-mailing communities@twoten.com quoting product code: EST/HIP/08.
EPCs and climate change
The EPC is an important part of the HIP and underlines the Government�s commitment to cut carbon emissions. Here we feature some core facts about energy savings and how EPC recommendations can help cut fuel bills.
[Source: Energy Savings Trust]
Each household in the UK creates around six tonnes of carbon dioxide a year. That�s six times the weight of the rubbish an average household throws away in a year. It�s also double the carbon dioxide emissions that the average car produces in a year. By following recommendations that come with EPCs, you can cut down the emissions that come from your home and cut your fuel bills.
For more information on EPCs and green issues visit:
http://www.communities.gov.uk/epbd
http://www.energysavingstrust.org.uk
HIPs - Who needs one?
Properties marketed for sale from 14 December 2007 in England and Wales will need a HIP (Home Information Pack), which includes a home energy rating.
It is the responsibility of the seller to compile the pack, but they might wish to get their estate agent or one of the businesses devoted to providing HIPs to do it for them.
Scotland is due to get its own version in 2008, which will be slightly different to the Scheme in England and Wales.
It will be known as the Single Survey Scheme or Purchasers Information Pack (PIP).