News Links
Next stage for Home Information Packs and Energy Performance Certificates announced
Independent redress plans are a step in the right direction,
says NAEA
Castles Top For Customer Service
The Home Sale Network - Explained
Lucky Castles’ Purchaser Wins £25,000 Prize
Castles Newsletter 'The Standard' back issues
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HIP Update 2008
All homes marketed for sale after 14 December 2007 in England and Wales need a Home Information Pack (HIP) (subject to some exceptions).
A key component of the HIP is the Energy Performance Certificate
(EPC), which will rate the home's energy efficiency, using graphs like those on fridges and washing machines.
It includes recommendations on how to cut fuel bills and reduce carbon emissions, encouraging people to make improvements to the energy efficiency of their homes.
Currently, any property that was already on the market on the relevant commencement date (ie 1 August 2007 for sales of homes with four or more bedrooms; 10 September 2007 for those with three or more bedrooms and 14 December for all properties) does not need to have a Home Information Pack.
At this stage no date has been set when all properties that are on the market will be required to have a Pack. The First Day Marketing provision comes into force on 1 June 2008. This means beyond the 1st June 2008 all property (not already on the market) will need to have a HIP in place before marketing can commence.
The regulations have been temporarily amended until 1 June 2008. During this time the required leasehold information will only be a copy of the Lease. The other leasehold documents that are currently required will become authorised (optional) during this period.
To find out more about HIP’s and how it may affect you please contact your local Castles office.
Next stage for Home Information Packs and Energy Performance Certificates announced
The Government has announced that Home Information Packs (HIPs) and Energy Performance Certificates (EPCs) will be rolled out to three bedroom properties from September 10.
HIPs and EPCs are being introduced on a phased basis to ensure a smooth transition in the housing market, and to begin the process of transforming the home buying and selling process in the interests of consumers and the environment at the earliest opportunity.
Following the introduction of the packs for homes with four bedrooms and above on August 1, the Government has confirmed there will be enough energy assessors, nationally and regionally.
HIPs and EPCs will give house buyers energy ratings for homes for the first time, from A to G - similar to consumer friendly ratings for fridges, helping to lower fuel bills and reduce carbon emissions. The packs will also help to cut costs for consumers by increasing transparency and competition in the home buying and selling process.
A further announcement on rolling out HIPs and EPCs to other properties will be made in due course.
Measures recommended in the EPC could save the average consumer £300 a year off their fuel bills, according to the Energy Saving Trust. Typical 'green grants' of £100 to £300 for energy saving improvements like loft insulation are available for many home owners.
A new system to make it easier for home owners to access these grants from energy suppliers was launched earlier this month. Energy suppliers are providing immediate access and information about green grants and offers to home buyers when they sign up to an energy contract. A new portal on the Energy Saving Trust’s website also allows consumers to tap in their postcode to find out offers available.
Castles are offering HIPs as part of their ordinary fees. Others are charging in the region of £300 to £350 plus VAT on an upfront or deferred basis.
Castles have been preparing for The Governments revised August 1st launch date for a number of years and below outline the current requirements of the legislation. Below is a synopsis of the current requirements but, of course, for further information and details of castles HIP inclusive sales package contact Castles.
From 1 August 2007, Home Information Packs (HIP) are compulsory for four bedroom properties and larger. Packs will be extended, on a phased basis, to smaller properties as soon as sufficient energy assessors are fully qualified.
If you're a seller, you need to make sure you (or your agent) have commissioned a HIP by the time that you market your property. This relaxation of the requirements (until the end of the year) means your agent can market your home immediately.
The HIP contains important information that buyers need to know.
For sellers, providing a HIP upfront should reduce the likelihood of any nasty surprises in the selling process that could delay the sale, as buyers will be able to make more informed decisions about purchasing their home.
There are two types of information to be found in the HIP Compulsory ‘Required’ Documents and Optional ‘Authorised’ documents.
The Required documents are: INDEX, SALE STATEMENT, ENERGY PERFORMANCE CERTIFICATE, STANDARD SEARCHES and EVIDENCE OF TITLE with leasehold properties also including additional information for leasehold or commonhold, where applicable.
THE INDEX: The Index provides a checklist for sellers, buyers, estate agents and enforcement authorities. Where a document that must be included in the HIP is unavailable, the Index must say so, give the reason it is missing, and indicate what steps are being taken to obtain it. Where documents are added to or removed from the Pack at a later stage, the Index should be revised accordingly.
THE ENERGY PERFORMANCE CERTIFICATE (EPC): EPC’s tell you how energy efficient a home is on a scale of A-G. The most efficient homes - which should have the lowest fuel bills - are in band A.
The EPC also tells you, on a scale of A-G, about the impact the home has on the environment. Better-rated homes should have less impact through carbon dioxide (CO2) emissions.
The average property in the UK is in bands D-E for both ratings. The EPC includes recommendations on ways to improve the home's energy efficiency to save you money and help the environment.
THE SALE STATEMENT: The sale statement should provide some basic information about the property, including:
- The address of the property being sold
- Whether the property is freehold, leasehold or commonhold
- Whether the property is registered or unregistered
- Whether or not the property is being sold with vacant possession
STANDARD SEARCHES: The local land charges register relating to the property being sold. If the search is carried out by the local authority, an official search certificate will be provided. Alternatively a personal search company can be used.
Other records held by the local authority on matters of interest to buyers, such as planning decisions and road building proposals. These are referred to as local enquiries in the HIP regulations. A local authority or a personal search company can be used.
The provision of drainage and water services to the property. The local water company or a personal search company can be used (however, the search must comply with the HIP Regulations).
EVIDENCE OF TITLE: These documents prove that the seller owns the property and therefore has the right to sell it. Where the property being sold is registered, certain documents that are available on request from the Land Registry must be included in the HIP. These provide an up-to-date official record of who owns the land, and consist of:
- Official copies of the individual register (made up of a property register, proprietorship register and, typically, a charges register).
- An official copy of the title plan
For sales of unregistered land, the HIP must include copies of a certificate of an official search of the index map (obtained from the Land Registry), and those documents that the seller intends to rely on to provide evidence of title to the property, and thus the right to sell it.
Castles have the facility to produce the HIP In House to save time and reduce costs to enable the HIP to be offered as part of Castles service with no extra charge for the HIP preparation.
Independent redress plans are a step in the right direction, says NAEA
The National Association of Estate Agents (NAEA) welcomes plans to bring forward legislation to provide ‘improved arrangements for consumer advocacy and for the regulation of estate agents’, as announced in the Queen’s speech recently.
A background note issued by the Department of Trade and Industry expanded upon the ‘Consumers, Estate Agents and Redress Bill’ referred to by the Queen. The bill will require all estate agents to join a redress scheme and will strengthen the regulation requiring agents to keep records for inspection by Trading Standards.
The NAEA has been calling on the Government to introduce industry-wide redress for some time. This latest move is a positive step forward. The Association warns, however, that after-the-event compensation is not enough on its own and that prevention methods must be considered.
Charles Smailes, President at the NAEA, comments: “This is clearly a step in the right direction. It is important for consumers to feel secure in the fact that they will receive some form of compensation if they are unfortunate enough to suffer at the hands of malpractice.
“What is equally important, however, is to do everything possible to stop the malpractice happening in the first place. Agents who are members of an industry body, such as the NAEA or the OEA for example, are bound by a Code of Conduct. We would like to see the Government make it compulsory for all agents to be a member of a regulatory body. What we hope is that today’s proposed legislation is the first step towards improved regulation of the industry and we would be pleased to work closely with the Government to take this forwards.
“We also believe it is vital for the Government to address the very important and growing area of property lettings. The residential lettings market sees a much higher turnover than residential sales, which means there is more opportunity for things to go wrong. We would like to see the redress legislation covering consumers who are renting property as well as those who are buying and selling.”
Local estate agent Duncan Pate who is a Fellow of the National Association of Estate Agents also welcomed the announcement adding “As founder members of The Ombudsman For Estate Agents scheme Castles would welcome the widening of the scheme to include all estate agents. This would then ensure all agents are working to the same, high, standards and continue the improvement in the eyes of the public of the standing of the profession”. Duncan added “We would also like, in due course, for the Government to take the process further and to see mandatory licensing of agents, as in the case in The USA, where agents have to demonstrate minimum standards of knowledge and competence before being allowed to practice”.
Editor Notes:
About the NAEA
The National Association of Estate Agents (NAEA) is the UK’s leading professional body for estate agency personnel, representing the interests of approximately 10,000 members who practice across all aspects of property services both in the UK and overseas. These include residential and commercial sales and lettings, property management, business transfer and auctioneering.
The National Association of Estate Agents is dedicated to the goal of professionalism within high street estate agency. Its aim is to reassure the general public that by appointing an NAEA member to represent them they will receive in return the highest level of integrity and service in both sales and lettings. Each NAEA member is bound by a vigorously enforced Code of Practice and adheres to professional Rules of Conduct. Failure to do so can result in heavy financial penalties and possible expulsion from the Association.
Castles Top For Customer Service
Castles in Farnham are pleased with the results of a recent customer satisfaction survey undertaken for the Ombudsman For Estate Agents. Castles were founder members of the Ombudsman For Estate Agents Scheme (OEA) which provides a free and fair independent service for dealing with unresolved disputes between member agents and people who are buying and selling residential property in the UK.
Buyers and sellers have the assurance that member agents will follow the strict code of practice. To ensure compliance with the requirements random customer surveys are undertaken. In April of this year a sample of Castles clients were sent questionnaires by Referenceline who undertake the survey on behalf of the OEA. A series of questions ask the buyers and sellers to rate aspects of the service provided by the agent out of ten.
Castles were delighted when the scores were released and overall scored 9.6 out of ten. This puts them equal top scorers in the Referenceline table for Surrey estate agents who have been surveyed. Duncan Pate Managing Director of Castles was very pleased with the results commenting “With programmes such as BBC’s Whistleblower putting the industry in the spotlight the general public can be reassured that using an agent that is an OEA member provides them with a good degree of protection. I am particularly pleased that our scores equalling the best of any agent surveyed in Surrey although we know next time we need to beat 9.6 out of ten!”
The agent is granted access to the scores and comments but these are anonymous providing useful feedback where necessary. Both the scores and the comments are put onto the OEA website for the public to investigate. “The ability of the general public to research and vet their choice of agents before even inviting them round is fantastic for the consumer and something more people should be made aware of” concluded Duncan.
The OEA code of practice is approved by the Office of Fair Trading whose input shapes the procedures required by the agents involved. A consumer guide is available from www.oea.co.uk where the customer ratings of the member agents can be found.
Changes to the Homes Bill
On 18th July 2006 The Housing Minister Yvette Cooper announced fundamental changes to the Governments Homes Bill. Crucially the requirement for a Home Condition Report (survey) before putting your property on the market has been withdrawn from the legislation. This throws the remaining proposals into some doubt as the HCR was always a crucial part of the changes in the home buying process. Although welcoming the changes Duncan Pate Director of Castles commented “The objections to the proposed changes recently have been largely similar to the objections that were made when the Bristol Pilot of the proposals was undertaken in 1999. So why the Government has waited until now before making the decision to withdraw the HCR is baffling”.
The requirement for basic legal information and searches is largely the same but without the condition report the benefits of the restructuring the process is questionable. The Energy Performance Certificate remains which is welcomed by Castles. The implementation date remains 1st June 2007.
The full tranccript from the changes is listed below.
The Government today announced plans for the introduction of Energy Performance Certificates as part of the phased roll-out of Home Information Packs to help consumers cut costs and waste when buying a home and help the environment too.
In the light of the plans for testing and concerns about the readiness of industry, the Government announced new proposals to phase the introduction of HIPs, prioritising the delivery of energy efficiency information with further testing later this year on the other aspects of HIPs.
This means that HIPs will be introduced in June next year with searches and energy performance information, enabling buyers and sellers to get A-G ratings on their homes similar to fridge ratings as well as a list of practical measures to cut their fuel bills and carbon emissions at the same time.
The Energy Savings Trust estimates that by following the proposals in the Energy Performance Certificate, the average homeowner will save £300 a year on fuel bills. Government also believes that the information could be used to support the growth of green mortgages and other incentives.
However on the basis of detailed consultations with industry and the latest market and testing information, the government has decided to phase the roll out of other aspects of Home Information Packs, introducing the rest of Home Condition Reports on a market-led basis in the first instance, in order to ensure a smooth implementation with clear benefits for consumers.
Minister for Housing and Planning, Yvette Cooper said:
“HIPs can deliver great benefits for consumers and the environment. But it is important that they are implemented in a sensible way, based on proper testing. That is why we will begin with the most important element – energy efficiency ratings for homes. This will mean practical information for homeowners on how to cut their fuel bills and carbon emissions. People should be backing HIPs to help everyone respond to the global challenge of climate change.”
"We look forward to working with the lending industry, HIP providers and those training to be home inspectors as we develop the next steps."
The dry run aims to ensure that HIPs deliver the maximum benefits to consumers by looking at costs, the savings from avoiding waste and duplication, consumer attitudes to the Packs, failed transactions and transaction times, and people's willingness to sell with HIPs in place. It will begin with further consumer research in the summer as well as analysis of over 14,000 HIPs produced so far, in order to inform area based trials later in the year which will be independently monitored.
Ministers are determined to avoid the risks to consumers and to the implementation of Energy Performance Certificates from a “big bang” introduction in June next year. In particular, further testing is needed on the costs and impacts of Home Condition Reports and the government does not want to see early roll out of Energy Performance Certificates jeopardised by late amendments or delays to the rest of the scheme.
The latest information casts doubts on the readiness of the industry to be able to pass on the benefits to consumers from next June. There are concerns about the number of home inspectors who will be in place in time. In addition evidence from the Council of Mortgage Lenders shows that many lenders will not be in a position to make maximum use of Automated Valuation Models which will support the use of the Home Condition Report. The Government is keen to avoid risks to consumers from industry delays and potential late changes to the implementation timetable next year.
Therefore, the Government will begin by promoting the take up of HCRs on a market-led basis - including examining the case for pump priming and other incentives. Mandatory introduction of Home Condition Reports remains on the table, however the Government wants to encourage market led take up first, in order to allow a more flexible roll-out that responds to consumer demand and the results of further testing. The Government will urgently review with key stakeholders what support is needed to ensure that there are sufficient home inspectors in place, and that consumers are fully protected.
The Home Sale Network - Explained
The Home Sale Network is made up of 753 independently owned Estate Agents across the UK.
Each company has been carefully assessed to be the best estate agent in their respective area.
Both Castles offices in Aldershot and Farnham have been independently scrutinized and recognised by the HSN as the leading independent Estate Agents in town.
Members of the network benefit from exclusive access to all of the buyers that are being moved through Cartus (the world’s largest relocation company). In addition to these business movers, many more buyers moving under their own steam from one area of the UK to another are referred between members.
The HSN membership is a huge benefit to Castles clients as it gives their property unique nationwide coverage via the HSN website.
In addition, anyone selling locally and moving elsewhere can use the network to find them their next property anywhere in the UK.
For further information please contact
Duncan Pate at our Farnham Office
Tel: 01252 715333 E-mail: dpate@castles.co.uk
Lucky Castles’ Purchaser Wins £25,000 Prize
You may have seen recently in the press the headline “Catchy Verse wins £25,000”.
Local estate agents Castles were delighted to present one of their lucky purchasers with a cheque for £25,000!
Following a competition running over the last six months through all offices of the Home Sale Network, purchasers were invited to enter the national competition. They had to correctly identify how many offices the nationwide estate agency network has and provide a tie breaker to decide the winner.
The winner was announced at an award ceremony that took place at London’s Hilton Metropole Hotel as part of the Home Sale Network’s annual conference which was attended by over 570 delegates.
Abigail Armstrong from Weybourne correctly identified that there were 750 offices in the network and her tie breaker with a first time buyer theme found favour with the judging panel. Abigail admitted that she found inspiration for the tie breaker during an episode of Eastenders!
When Jane Bergman, Director of Marketing and Richard Tucker, Managing Director for the Home Sale Network rang Miss Armstrong to give her the good news she was surprised but recalled entering the competition shortly after her move to Weybourne. Commenting “I won a drawing competition when I was 15, but until now it was the only thing I have ever won!”
The timing of the win couldn’t have been better as it coincided with
Miss Armstrong and her partner’s housewarming party so with a few bottles of bubbly, some fireworks and 30 friends the win was celebrated in style!
When asked how she would spend the winnings, Miss Armstrong said that some home improvements are planned along with a new car and a “bit of a pamper”!
Duncan Pate Director of Castles who encouraged all Castle’s purchasers to enter the competition commented “The competition got a lot of comments and we always hoped the winner would be one of our purchasers”. He continued, “The amount of prize money reflected the Home Sale Network’s desire for their agents to offer something different, which we feel this competition has achieved.”
Richard Tucker from the Home Sale Network agreed by adding, “We are delighted that the competition has been such a success. It generated a great deal of interest among Home Sale Network purchasers all over the country and we are delighted to announce Miss Armstrong as our winner”.
Dan Vasey of Castles and Neil Baker of Stonebridge Mortgage Services attended the Bush Hotel Wedding Fair to offer assistance to couples who were thinking or purchasing their first home.
On the day, any potential first time buyers were given details of suitable new homes that could meet their requirements, and Neil was on hand to offer free advice to set potential budgets. Everyone who registered or sought advice entered a free draw, which one lucky winner won a bottle of Champagne! Dan Vasey of Castles commented, “At Castles we always look for new ways to advertise our clients properties and this was an excellent opportunity to go that extra mile.”
Recent figures from Nationwide Building Society showed that the average property in the UK now costs £157,250, with the average first-time buyer paying £128,105.
UCB said house prices were likely to rise significantly over the coming 15 years, adding that 15 years ago the average property cost just £54,313.
Latest figures from the Council of Mortgage Lenders show that the average age of a first-time buyer is now 34.
14 viewings are needed for the average property to reach a final sale, and around 11 weeks between a property going on the market and a final offer being made.
Whilst the number of prospective buyers and sellers using the Internet to view properties continues to rise, more than 97% of estate agents say “for sale” boards will remain one of the key methods for identifying homes for sale and for contacting the relevant selling agent.
It is worrying that over 41% of agents questioned feel that vendors chose an agent purely on the basis of the highest valuation and lowest commission, without taking their level of skills, knowledge and service into account. It is these factors which will ultimately dictate the speed and price of a successful sale.
