This is long - get someone to put the kettle on.

The sentences are as heavy as mud.

Scroll to the end for resume and contact details. Here we go - Blair speak:

"Government is taking action to transform home buying and selling in England and Wales and boost consumer rights and benefits, Ministers announced today. (June 14th.)

On the day the Government unveiled the detailed contents of Home Information Packs, Housing Minister Yvette Cooper and Consumer Affairs Minister, Ian McCartney, set out a three-way strategy to overhaul home buying in England and Wales, involving Home Information Packs, local searches, e-conveyancing and stronger redress against estate agents and others when things go wrong.

Buying and selling your home can be fraught with costs and delays, with £350m wasted by buyers and sellers each year when sales fall through. Under the current system home sales in England and Wales take longer than in almost every other European country and consumers are often left feeling baffled, misled and even ripped off in the process.

Measures outlined today will:

  • give reliable information on the condition and energy efficiency of homes up front, to cut waste and duplication
  • speed up sales by making conveyancing and local searches cheaper and faster
  • provide simplified redress for consumer complaints against estate agents and  other market providers and a single point of access for all complaints about the buying and selling process.

The aim is to encourage greater competition and transparency in home buying and selling, so that people know exactly what they are paying for.

Yvette Cooper said:

 "For too many people, buying or selling their home is still a real nightmare, with long delays and duplication. People should be entitled to proper information at the beginning of the process. We know there are still vested interests who make money out of the current system and who are opposed to reform, but this is about getting a better deal for the consumer."

Consumer Affairs Minister Ian McCartney said: 

"Estate agents play a key role in the housing market.  It is vital that people buying and selling property are adequately protected against rogue agents and unfair practices.

"We are committed to put in place approved redress schemes for consumers.  Those who refuse will be prohibited from acting as estate agents. The legislation is already in place to tackle complaints involving HIPs and we want to extend that right of redress to cover all complaints against estate agents as soon as possible.  These changes will be introduced at the very first legislative opportunity."

The Home Information Pack regulations published today make clear that:

  • Information on searches and surveys will be included in the pack so several buyers won't end up paying several times for the same information;
  • HIPs will include a Home Condition Report which sets out detailed information on the condition of the property. At present, 30 per cent of sales collapse under the current system, often at a late stage when terms have already been agreed;
  • An Energy Performance Certificate will be included as part of the Home Condition Report which, just like a fridge rating, will show how energy efficient a property is and indicate its likely running costs as well as offer advice on how further savings can be made;
  • Most of the information contained in Home Information Packs, such as searches and title deeds, is already provided and paid for under the current system, but the HIP transfers costs from buyers to sellers, so first time buyers will be much better off

(Still there dear? You're doing well, Ed.) 

Home Information Packs have long been called for by consumer association Which?

Alongside the regulations the Housing Minister also published the certification scheme standards establishing the strict requirements to be met by Home Inspectors who will complete the Home Condition Reports. 

This will require high standards and proper indemnity insurance for Home Inspectors so that buyers, sellers and lenders can all rely on the report.

The certification schemes will also include independent redress against Home Inspectors when things go wrong.  Estate agents will also have to join an approved redress scheme for their work on HIPs and the Government intends to go further and legislate in respect of all their work.

Ms Cooper also welcomed the news of a proposed new awarding body for the Home Inspector qualification so that more Home Inspectors can be trained.

The Government is also planning new legislation to extend independent redress against all aspects of estate agents' work, as well as simplifying the system for customer complaints.

On costs the latest estimates, based on the current market, show an average cost of HIPs of £600-700 plus VAT.  However, those costs are mostly paid for in the current system anyway. And competition is already affecting prices with some providers saying the would offer reduced price HIPs and one provider proposing to offer them for free.

Ms Cooper also announced that the Government will ensure there is full monitoring and assessment of this Autumn's dry run for HIPs in order to ensure lessons are learnt in time for the full implementation next year.  The dry run will look in particular at the speed and costs of producing HIPs, consumer attitudes to HIPs, and the impact on the wider homebuying process.

Energy Performance Certificates (EPCs) will be included in the Home Information Packs.  The certificates will give home buyers and sellers A to G ratings for their home's energy efficiency and carbon emissions.  They will tell them current average costs for heating, hot water and lighting in their home as well as how to cut costs with energy efficiency measures.  The announcement of the Government's new EPC has been welcomed by environmental groups such as Friends of the Earth and the WWF.

(Sorry, but there's more...)

The Government also set out today plans to extend Energy Performance Certificates to public buildings.

Energy Performance Certificates will be issued when buildings are constructed, sold or rented out and energy consumption certificates will be issued for buildings obliged to display them.

Initially, energy consumption certificates will be limited to large public buildings, but a public consultation will look at how this can be widened to smaller buildings and some of the private sector."

Notes to those still awake:

1. About Home Information Packs
As from 1 June 2007, homeowners will be required to provide a Home Information Pack when marketing their homes for sale throughout England and Wales. This will help reduce the estimated £1 million which is wasted each day because of failed transactions. The Pack will include a Home Condition Report, terms of sale and any search details. An energy effiency rating will be included in the report, giving consumers the choice to assess the likely running costs of a property before they buy. 

2.   Consumer Benefits
HIPs will:

  • Provide transaction improvements by reducing the abortive costs to consumers and the industry attributable to failures caused by survey or valuation inspection findings. 
  • Improve the condition of the housing stock by reducting the incidence of unexpected repair bills and encouraging better maintenance of homes. 
  • Provide greater consumer choice by reducing the entry costs to first time buyers and creating a market of serious sellers.

3. Cost of Home Information Packs:
Estimates of the cost of the components of HIPs in the current market suggest an average cost of around £600-700 plus VAT to compile.  Most of this cost is not new and is being met at present by both sellers and buyers.  Some providers have already said they would offer HIPs at reduced cost or even free.

4. Home Inspectors/Certification Scheme:
Only inspectors qualifying under certification schemes approved by the Secretary of State will be able to prepare Home Condition Reports.  The scheme will be responsible for monitoring and auditing inspectors' work.  This will be robust to ensure that standards are maintained and the reports can be trusted.

If inspectors fail to maintain the correct standard or act in a way that is partial to one party contrary to the rules of the scheme, their certification will be removed, along with that their ability to produce Home Condition Reports. 

5. Home Condition Report:
The Home Condition Report will be an objective report on the condition of the property that buyers, sellers and lenders will have a legal right to rely on.  Home Inspectors will have to have suitable insurance that will be backed up by insurance of last resort provided by the certification scheme.

6. Energy
A Department for Communities and Local Government (DCLG) survey last week revealed that many local authorities are now including in their local development plans on-site renewable energy measures for new developments.  The Government also wants to reduce planning restrictions on small-scale microgeneration equipment for people's homes. A review of planning permission rules aims to make it even easier for people to do their bit to help the environment.
http://www.communities.gov.uk/index.asp?id=1002882&PressNoticeID=2167
 
The Government has also increased energy efficiency standards for new buildings through an amendment to the Building Regulations that came into effect on 6 April 2006.  The new measures taken together with the changes to strengthen Building Regulations in 2002 and domestic boiler standards in 2005 improve energy efficiency standards by around 40%.  Implementation of the technical requirements in Articles 3 to 6 of the EU Energy Performance of Buildings Directive is through this amendment of the Building Regulations.

There is an additional period of three years within the EU Directive to apply fully the requirements in Articles 7 to 10 for the provision of information through energy performance certificates and inspection of boiler and air conditioning systems.   

The Government is working with stakeholders to ensure sufficient numbers of trained inspectors are available to support a phased programme of implementation and ensure all the requirements of the Directive are in place by January 2009 (the end of the derogation period).  This includes the introduction of the Home Information Pack that becomes mandatory from 1 June 2007 together with the training of Home Inspectors to cover requirements for energy certificates on the sale of dwellings.


The Home Information Pack Regulations 2006 can be downloaded at
http://www.communities.gov.uk/homeinformationpacks

The Certification Scheme Criteria can be downloaded at

Home Information Pack: Certification Scheme Standards - Part 1: Business Standards
http://www.communities.gov.uk/index.asp?id=1500747

Home Information Pack: Certification Scheme Standards - Part 2: Technical Standards
http://www.communities.gov.uk/index.asp?id=1500746

Public Enquiries: 020 7944 4400
DCLG website: http://www.communities.gov.uk/

(Well done my darling, you've made it to the end. Now you can be an official dinner party bore on HIPs, Ed.)