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Politics & Property Week: What Next For HIPs & EPC’s?

Posted on May 17, 2010 by editor
Posted in ECO Issues, Guest Bloggers, Politics Of Property Tagged , ,

We have had a lot of politics going on in the last couple of weeks, and now that we finally have a government, I felt we should take a look at how politics will effect property issues in the near future. Later this week on our blogs we have the mighty Rightmove (the UK’s largest property web portal) and Graham Norwood a respected property journalist with his take on how property is affected by politics.

What Next For HIPS & EPC’s?

The Coalition Government have now announced their intention to scrap HIP’s (Home Information Pack).  The  Agreement released 12th May 2010, simply stated

“The parties agree to implement a full programme of measures to fulfill our joint ambitions for a low carbon and eco-friendly economy, including: Retention of energy performance certificates while scrapping HIPs”.

When Will The Home Information Pack Be Scrapped?

home information packNo timescale has been released relating to this so I predict that a period of confusion will ensue! Equally there is no suggestion about exactly how the Energy Performance Certificate (EPC) will be retained. The EPC was created following the EU Directive 2002/91/EC on the Energy Performance of Buildings. The Directive specifically states in Article 7, section 1.

“Member States shall ensure that, when buildings are constructed, sold or rented out, an energy performance certificate is made available to the owner or by the owner to the prospective buyer or tenant, as the case may be.”

All which suggests that the EPC may have to remain in place.  It therefore will not be easy to drop it. According to Grant Shapps the Housing Minister the HIP’s can be scrapped “within 100 days” as the enabling legislation allowed for such an event.

HIP- RIP?

The future of the HIP is looking bleak.  It’s not as if the government doesn’t have bigger issues to worry about, but a promise is a promise and they seem to be firm on fulfilling this one.?? It may be RIP for the HIP, but home buyers will still need to know about the property they are purchasing. Scrapping the HIP will not eliminate the need for information.

The Energy Performance Certificate may be all that is retained but buyers will want to know about local land charges,  planning and building certificates which are presently in a HIP. It’s this sort of information that eases the conveyancing process. A lack of information slows it down.  Well-informed buyers make better decisions.  They feel more confident in their decision. This will be provided by any good lawyer when the contracts are submitted to the buyers lawyers.

Will I Still need a HIP?

energy performance certificatesThe short answer is YES YOU WILL and you cannot put your property on the market without one at present.

What may happen when HIPS are abolished ?
I think the following must be considered:

  1. A vehicle for the mandatory energy rating of all homes for sale – not because of EU directive 2002/91/EC but because knowing about areas in the property that can be improved to reduce emissions is wise.
  2. A re-thinking on the fundamental idea of property transactions with the objective of making the Conveyancing process better and faster.

We hope that Government will actually talk to property lawyers and surveyors before implementing any changes and that this will not be as rushed and half-baked as the introduction of the Home Information Pack.

This blog was written by Reg Toy who is a specialist property lawyer.

You can find their web site here or on Twitter here.


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  • http://www.callaways.co.uk Chris Callaways

    I think the abolishment of HIP's will spark a new wave of sellers, HIP's are just one of those things that are a slight barrier or pest sellers have during the first steps of when contemplating selling their home, removing HIP's makes the path to sale easier.

  • http://www.callaways.co.uk Brighton and Hove

    Though it now looks that the EPC will be taken down the HIP route for the future, as they are planning to put a life of 10 years on each EPC which could basically mean it makes it out dated and useless simular to that of the HIP.

    • http://www.mypropertymentor.co.uk/ Roberta Ward

      The most ridiculous thing from an investor point of view was that an EPC was needed for rental property. No tenant I have ever met has EVER asked me about the EPC or the buildings efficiency. In some respects it could be useful on the sales side, but lettings? No, completely pointless expense in an already expensive market. They care about amenities/ cost, nothing else.

      • http://www.inspectyourenergy.co.uk Dave

        The reason why they don't ask to see the EPC is becuse they have never heard of it. As for a pointless expense how is spending £50 expensive when it also lasts 10 years. the EPC is a valuable tool for landlords and tenants, after all the tenant pays the bills, and should be aware of the costs. The landlord should also be encouraged to make the home more energy efficient.

        • http://www.mypropertymentor.co.uk/ Roberta Ward

          Hello Dave, thanks for your comment. I dont know where you are in the country, but down where I am they charge £100- 200 for an EPC. If you own lots of BTL the even £50 for each one adds up really fast.

          Also, if I may just correct you, not all tenants pay the bills. In multi tenanted properties we pay them on behalf of the tenants. We renovate all our properties, so we know how good or bad they are likely to perform energy wise, I dont need a piece of paper to tell me that or to get charged for the privilege of telling me something I already know.

          I have no problem making the houses energy efficient, but I have no need of a piece of paper to prove it. Granted, not all landlords do as we do.
          Depending on style / age of property, the efficiency could change radically in 10 years too making it even more pointless. The reason we have them is purely to comply with EU directives.
          @RobertaWard

          • http://www.inspectyourenergy.co.uk dave

            google epcs and you can get the EPC for £35 from the thousands of desperate DEAs with no work. You are right about the 10 years, that has and will make the EPC pointless. Some Landlords need to know how to improve the homes efficiency, but most could not careless as they don't pay the bills.

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