HIPS Update ...

The Government has now announced that Home Information Packs will be implemented from 1 August 2007 rather than 1 June 2007. It is reported that the Government has reached an agreement with the Royal Institute of Chartered Surveyors (RICS) on the RICS' application for judicial review of Home Information Packs/Energy Performance Certificates. This includes the fact that HIPS and EPCs will be phased in as from 1 August 2007 starting with the sale of homes with four or more bedrooms and that, until the end of 2007, people will be able to market their homes for sale as soon as they have commissioned the HIP rather than waiting until they have received it.

The two sets of regulations (Home Information Pack Regulations 2006 and Home Information Pack Regulations 2007) have now been withdrawn.

There are still a number of unresolved issues for example, it is possible to 'sell' a house the first weekend it is with the estate agent. By commissioning the HIP the seller will presumably become liable for its cost and may not be able to produce the HIP to the buyer before the buyer's solicitors have put together the various title documents and searches. Therefore there could be duplication between the work done by the buyer's solicitors and the seller providing the HIP.

It is said that HIPS will be extended to smaller properties 'as rapidly as possible' as soon as sufficient energy assessors are available for work.

It will be possible to have an EPC that is up to 12 months' old when the property is put up for sale. The current position is that an EPC must not be more than three months' old.

The Government is also to invite Councils and Registered Social Landlords to work with the Government to introduce EPCs on a voluntary basis in social housing for example, at the time of stock transfers, which should be of note to our housing association clients. We understand that the Councils, and in particular those which are looking to transfer housing stock, are being invited to register an interest with the Department of Communities and Local Government (DCLG) as there may be funding available to support the production of EPCs over the next 4-5 months as a pilot exercise.

It is also announced on the Housing Corporation website that they and DCLG are offering 50% funding for Registered Social Landlords to produce EPCs in summer 2007 and applications must be received by the Housing Corporation by 2 July 2007.