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 2021, 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?
No 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?
The 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:
- 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.
- A re-thinking on the fundamental idea of property transactions with the objective of making the Conveyancing process better and faster.
