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25 January 2007
Boost for Energy Performance Certificates to help tackle climate change as part of 1st June HIPS package
A new consultation published today will 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.
This
would give consumers better access to information, helping them make
new green choices by comparing energy costs between homes.
EPCs, energy ratings for homes, will give consumers for the first time
information about the energy efficiency of properties, and practical
steps to reduce carbon emissions and save on energy bills.
To increase awareness of the benefits of undertaking environmental
improvements, the Government is also proposing to make the EPC the
first document in the Home Information Pack when launched on 1st June.
The introduction of the EPCs has been given added urgency following the
recent publication of the Stern report into climate change.
The consultation also includes changes to speed up the home buying
process based on the evidence of rigorous testing in area trials. It
proposes changes to accelerate the delivery of local searches which can
take more than 4 weeks in some areas, and tackling the post code
lottery of different levels of service and different charges for
consumers.
Ministers are also 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 sets out the following steps:
* The Government will be issuing new guidance to local authorities on
providing prompt access to all search information, speeding up the
process and setting charges that are fair to consumers, after area
trials have shown that obtaining searches and leasehold documents can
cause delays of four weeks or more in producing packs.
* 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 after six months to see whether they are
still needed.
* Where relevant, flood
and ground stability searches will be required in packs as soon as
systems are available to enable pack providers to find out quickly and
cheaply whether a property is in an "at risk" area. This will give
buyers key information without putting sellers to the expense of
providing extra searches in areas in which these are not relevant.
* 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.
Communities Secretary Ruth Kelly said:
"This is an important opportunity to improve the buying and selling
process for consumers. We want to promote a greener housing market for
consumers and Energy Performance Certificates can play a key part in
this. By providing more information on the energy efficiency of homes,
we can help consumers make more informed choices about the homes they
buy and their impact on climate change."
Housing Minister Yvette Cooper said:
"Most people have no idea about things like the lagging in the loft
when they buy a new home. But this will tell people how they can save
money on their fuel bills and cut their carbon emissions at the same
time. The trials have also shown we need to tackle the unfair postcode
lottery in searches which can cause homebuyers all kinds of costs and
delays."
New independent research
published today 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.
Notes to Editors
1. The HIPs consultative document is available at: http://www.communities.gov.uk/index.asp?id=1505731. The consultation ends on 21 February.
2. The Mori HIPs' Baseline Research is available at: http://www.communities.gov.uk/index.asp?id=1505732
3. Energy Performance Certificates, energy ratings for homes, will be a
key part of Home Information Packs from June 1. For the first time
house hunters will receive information about the energy efficiency of
homes and practical steps to save on energy bills and reduce carbon
emissions.
4. The Government today
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.
Public Enquiries: 020 7944 4400;
News Releases: http://www.communities.gov.uk
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