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Government News
New HIPs consultation published
A new Government consultation on HIPs was published yesterday. This aims to boost efforts to tackle climate change and promote energy efficiency by proposing estate agents must include Energy Performance Certificates (EPCs) with their property particulars for the first time. The Government aims to give consumers better access to information by comparing energy costs between homes and proposes to make the EPC the first document in the Home Information Pack when launched on 1st June.
The consultation also proposes changes to accelerate the delivery of local searches and tackling the postcode lottery of different levels of service and different charges for consumers.
Ministers are in discussion with the financial services industry about providing green mortgages which fund the improvements suggested in EPCs, as well as exploring options for linking EPCs to incentives to encourage energy efficiency such as the council tax rebates some local authorities are offering in conjunction with energy suppliers.
The consultation also proposes to allow properties marketed before 1 June to continue to be marketed without a HIP until 31 March 2008 (rather than 31 October 2007) and that a property can be remarketed by the same seller within one year of the original marketing date (rather than within 28 days as the current legislation states)
Other measures include:
· While action on searches is being implemented, there will be transitional measures to ensure the smooth implementation of HIPs in June, based on evidence from the area trials. Sellers will be able, for an initial transitional period, to market their home as soon as an EPC and key legal documents are provided as long as searches and leasehold documents (where relevant) have been commissioned. These transitional arrangements will be reviewed in December 2007 to see whether they are still needed.
NB: The consultation document proposes that an ‘Interim Energy Assessment’ should be required for new homes that are sold off plan, with a warning that the completed home may not necessarily have the predicted energy performance rating.
· The fines for estate agents who fail to produce Home Information Packs (including Energy Performance Certificates) will be reviewed in the light of experience from June 1 and could be raised from £200 to £500 if they fail to meet their commitments.
The HIPs consultative document is available at:
more info
The consultation ends on 21 February.
HBF will be issuing a briefing to members on HIPs and are keen to gain feedback from members on the consultation. HBF will be preparing a response in due course, particularly in relation to outstanding questions relating to EPCs.
Mori research shows average sale takes 6.5 months
New independent research published this week confirms that the current home buying and selling process is slow, expensive and uncertain for consumers. It shows that the home buying process is fraught with information failures and a lack of transparency for both sellers and buyers.
The Mori HIPs baseline report found that buyers and sellers currently face transaction times which average more than 6 months from marketing to completion, making them among the slowest in Europe. One sale in four took 8 and half months to complete and 23 per cent of buyers who completed a sale had at least one failed transaction.
The Mori HIPs' Baseline Research is available at:
more info
Further trials announced for HIPs
The Government has announced two further area trials for HIPs, in addition to the six already underway. The trials will be extended to London (Southwark) from 12 February 2007 and North West Wales (Gwynedd, Conwy & Isle of Anglesey) from 19 February 2007 to gain the broadest possible experience of different types of housing market in advance of 1 June 2007.
DCLG say work is well advanced on providing Domestic Energy Assessors
The consultation announced yesterday on HIPS confirmed that the first two qualifications for DEAs have been approved, training courses are underway and the standards for DEA accreditation bodies are close to being finalized. The Department envisages giving provisional approval to the first accreditation bodies in March 2007 prior to formal approval being given in April 2007.
Asset Skills and Communities & Local Government are organising a series of seminars around England and Wales in order to promote the career of Domestic Energy Assessor.
The DEA Diploma, the first qualification in a range to follow, has just been launched and the Government estimates that between 3,000 and 4,000 DEAs will be required in England and Wales as from 1st June.
NAEA welcome HIPs consultation
Charles Smailes, President at the NAEA, stated: "Clearly I am delighted that, at long last, the Government accepts some of the concerns we have continually flagged up. However, whilst the rules in respect of first day marketing have been relaxed, the fact remains that you will not be allowed to immediately market your home.
“We are also pleased that there is now a further opportunity for consultation as a result of the document issued today and we will, of course, be making further representation."
The e-petition launched last week by the National Association of Estate Agents (NAEA) against Home Information Packs (HIPs) received an overwhelming response, having attracted over 2,500 signatures just twenty-four hours after being announced
more info
Conservatives say Government should abandon Home Information Packs
Commenting on the Government’s consultation on Home Information Packs published yesterday, Shadow Housing Minister Michael Gove said:
"The Government is looking increasingly desperate as it scrabbles about for a justification for its widely discredited Home Information Packs.
“They've tried to make a great deal of the Energy Performance Certificates, but the truth is that it’s a fig leaf. It’s small, it looks green, but it can’t really cover their embarrassment”
Housing Market
New Halifax research shows that no county now has an average price below £100,000
New Halifax research shows that no county in the country now has an average price below £100,000. This is the first year that this has been the case. In 2001, nearly two in three counties – 63 out of 101 - had an average price below £100,000.
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Rightmove highlight effect of low housing stocks on house prices
The latest house price figures from Rightmove suggest that a shortage of properties is causing prices to rise, with the latest average price now at £223,000.
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Property north-south gap remains, say Halifax
The latest figures from the Halifax show that the gap between house prices in the north & south of England is slightly higher than ten years ago. House price growth in Q4 of 2006 continued in all regions, ranging from 6.6% in London to 0.9% in the north.
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First time buyers to feel the pinch says RICS
First time buyers will feel the pinch of interest rate hikes in the coming months but buy-to-let investors will continue to make their mortgage repayments says research conducted by the RICS.
With affordability at the worst levels since 1992, first time buyers will according to RICS slip behind in their mortgage repayments to a greater extent than buy-to-let investors who are less at risk. Buy-to-let investors tend to be older - with over half of all investors aged over forty five - and have larger disposable incomes (and possibly greater access to equity release) compared to first time buyers who have pushed themselves to the limit to get onto the housing market.
more info
Economic News
CBI reports above-trend economic growth
This week’s data from the CBI reveals above-trend economic growth in the final quarter of 2006 and insight into the motivations behind the surprise interest rate rise earlier this month.
UK GDP was estimated to be 0.8% higher in the final quarter of 2006 (in
line with CBI forecasts). This was the fastest pace of quarterly growth
since the second quarter of 2004. The output breakdown shows strong service sector growth of 1.0%, up from 0.8% last quarter, whilst output in the
production industries fell by 0.2 per cent. Within services, the distribution, hotels and catering sector expanded fastest (at 1.8%), while the business services and finance sector slowed from 1.4% to 1.0%. For 2006 as a whole, UK economic growth was estimated at 2.7%, much stronger than growth of 1.9% in 2005.
Industry News
Change of CIS rate
Not only is new CIS starting on 6 April 2007 – the rate of deduction of tax for CIS is changing. It is rising from 18% to 20%.
The rule to remember is that the rate of deduction is fixed by the date on which the payment is made NOT the date on which the work is done.
So all payments under “ordinary” deduction of tax made after 6.4.07 will be at 20%. There will be no payments made after 6.4.07 at 18%.
Firms holding current CIS4s would be best advised to collect as much outstanding money as they can before 6.4.07 to avoid the extra 2% deduction.
To find out more about CIS HBF are running two morning briefing sessions on Tuesday 12 February in Leeds and Wednesday 13 February in London.
For more information or a booking, please contact the events team on events@hbmedia.co.uk or 020 7960 1646.
HBF News
HBF Spring Policy Conference - A New Agenda for Home Building 20 March - One Great George Street, London
HBF are running a full day policy conference which will examine the full spectrum of new Government housing and planning policies and their implications for the future of home building. Following the December and January Government announcements, this event aims to cut through the confusion by summarising the key issues for home building businesses.
For more information or a booking, please contact the events team on events@hbmedia.co.uk or 020 7960 1646.
Bookings now being taken for the HBF AGM and Annual Industry Lunch
25 April - Hyatt Regency Hotel - The Churchill, London
The HBF AGM and Annual Industry Lunch will be held this year at the prestigious Hyatt Regency Hotel - The Churchill on Wednesday 25 April 2007.
The annual lunch will follow the HBF AGM with a drinks reception at 12.30pm and lunch at 1.00pm
*Tables for 10 or 12 booked before 28 February will benefit from a 10% discount*
For more information or a booking, please contact the events team on events@hbmedia.co.uk or 020 7960 1646.
Other News
Planning system driving up prices & interest rates, say Policy Exchange
Centre-right think-tank Policy Exchange have published a report on the restrictive effects of the planning system on economic growth. The report, entitled "Best laid plans - how planning prevents economic growth" builds on three previous reports from the co-authors, Professor Alan Evans & Oliver Hartwich.
Major recommendations include:
- Abolishing the national green belt policy
- Deciding projects of national importance through an Act of Parliament
- Reintroduction of simplified planning zones
- Introduction of a 'Social Cost Tariff' on the development of greenfield land
- Fiscal incentives for local authorities to allow development
more info
Policy Exchange report is a tissue of misinformation says RTPI
Confused, over-simplified and just plain wrong – a tissue of misinformation’ was how the Royal Town Planning Institute (RTPI) described the latest report from the Policy Exchange.
Jim Claydon, President of the RTPI said: “This report is wrong, it is confused and often contradicts itself. The authors’ determination not to recognise contributing factors, such as employment patterns, transport infrastructure or good schools, could lead people to assume the report was written with a clear agenda – to undermine the planning system and allow chain-stores such as Next to be built anywhere. Government should not be persuaded to abandon our town centres in favour of a wave of out-of-town tin sheds. This report is a tissue of misinformation.
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Mayor sets out extra £47 million for budget to tackle climate change
The Mayor of London today joined with Green Party Assembly Members to unveil details of an extra £47 million he is proposing to invest next year to accelerate London’s bid to become the leading ‘green’ city at the forefront of tackling climate change.
Included in the proposals are £8 million to increase the energy performance of London’s buildings and work to ensure that the vast majority of new developments are low or zero carbon.
more info
Consultation/Key Publication Dates
Code for Sustainable Homes:
Final document launched 13 December 2006
Implementation Spring 2007
Building a Greener Future (zero carbon homes consultation)
Closes 8 March 2007
Draft PPS on Climate Change Consultation
Closes 8 March 2007
Home Information Packs (HIPs) Regulations:
Revised regulations published 14 June 2006, further revisions required
HIPs Trials November 2006 onwards
HIPs Introduction 1 June 2007
New Consultation published 25 January 2007
Consultation ends 21 February 2007
Planning-gain Supplement:
Consultation begins 6 December 06 and ends 28 February 2007
DTI/Ofgem Call for Evidence for the Review of Barriers and Incentives to Distributed Electricity Generation:
Closed 2 January 2007
Part B of Building Regulations:
Approved Document published 19 December 2006
Implementation April 2007
Proposals for
Water Regulations published 13 December
Consultation closes 9 March 2007
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Jo Turner