EPC and HIPS explained

Energy Performance Certificate - EPC

The European Union has long been concerned about the energy efficiency of the buildings situated in its member states. In addition it is concerned about co2 emissions from buildings and it’s affect on climate change.

In January 2003 the EU Energy Performance of Buildings Directive (EPBD) was made public creating a massive impact on awareness of residential properties and the operation of commercial buildings as well as the development of new buildings. The EPC is the way in which the EU directive will be adhered to in the UK.

The EPC can only be compiled by Domestic Energy Assessors (DEA) or Home Inspectors (HI) who are members of a Government approved and regulated certification scheme.

DEAs are the work force that fulfils the need in England and Wales to adhere to the Energy Performance in Buildings Directive issued by the European Parliament. The qualification requirement they must hold is either the Diploma in Domestic Energy Assessment (DEA) and/or the Diploma in Home Inspection (HI)

Other provisions that must be adhered to:-

• The individual diploma holding DEA/HI is a fit & proper person to be interacting with the public on a professional level.
• To ensure that the diploma holding DEA/HI has maintained suitable levels of professional indemnity insurance.
• To ensure that a commitment is received from the diploma holder that they will update key skills and knowledge regularly as required – continued professional development ( CPD)

Our Assessors are members of the SAVA certification scheme who constantly monitors their members to ensure their work is meeting their rigorous quality control standards.

Whilst making his assessment of the property, our Energy Assessor will collect specific data based on the Government’s Reduced Standard Assessment Procedure (RdSAP) covering the following;

• Establishing the age and construction method of the property.
• Measuring floor and wall areas of the property.
• Looking at heating systems including the boiler, heat emitters and controls.
• Identifying existing cavity wall and loft insulation.
• Identifying any alternative heating (e.g. solar) and energy-efficient products (e.g. energy saving light bulbs).

The recorded data is then used to produce the EPC. It is not a pass or fail, it is an assessment of the property’s efficiency in dealing with energy showing this on a scale of A-G. The most efficient have the lowest fuel bills and are in band A.

The EPC also shows the impact the property has on the environment, this too is on a scale of A-G, with the better-rated properties having less impact through carbon dioxide (CO2) emissions.

The EPC also provides recommendations and information on ways to improve the property’s efficiencies i.e. how to cut carbon emissions and fuel bills helping the environment and saving you money.

Click here to see an example of an EPC.

 

When is an EPC needed?
From 1st October 2008 where a dwelling is being let an Energy Performance Certificate (EPC) will be required. An EPC is required as follows:-

• Individual house/dwelling (ie. a self contained property with its own kitchen/bathroom facilities) – one EPC for the dwelling.
• Self contained flats (i.e. each behind its own front door with is own kitchen/bathroom facilities) – one EPC per flat.
• Bedsits (where there is a shared kitchen and/or bathroom) – no EPC is required.
• Shared flats/houses (eg. a letting of a whole flat or house to students/young professionals etc) - one EPC for the whole house.
• Mixed self contained and non self contained accommodation – one EPC for each self contained flat/unit but no EPC for the remainder of the property.
• A room in a hall of residence or hostel - no EPC is required.
• Individual room in a flat or house (e.g. where a tenant rents a room so he/she has exclusive use of his/her bedroom and shared use of the kitchen toilet and bathroom) – no EPC is required. 

How long is an EPC certificate valid for?
Provided the building is not subsequently modified, an EPC certificate is valid for 10 years from the date of issue and will be kept on a central register for 20 years.

What are the identifiable areas for improvements?
The key areas to look at are:

• heating and boiler system 
• cavity wall and loft insulation
• double glazing 
• energy efficiency lights

Implications for Landlords
As a Landlord, EPCs are an important part of your business, from 1st October 2008 EPCs ALL properties being let to new tenants will require an Energy Performance Certificate (EPC). From this date an EPC and the recommendation report must be made available free of charge by the Landlord to a prospective buyer or tenant every time a residential property is viewed and re-let.

The higher the rating, the more energy efficient and the more attractive the property will become to potential new tenants. Government grants are available nationally, to help Landlords improve the energy efficiency of their properties, details of which can be obtained from your local council.

This requirement has been brought about by the Energy Performance of Buildings Directive and Regulations apply to both commercial and residential properties that are to be rented or sold on the open market. These regulations are to be enforced by Trading Standards. Landlords marketing their properties for sale or rent from this date without an EPC certificate run the risk of being served with a fixed penalty of £200 per property.

Landlords with a large portfolio of properties, please note, we are happy to offer discounts for bulk appointments. 

Please contact us to discuss how we can meet your EPC needs 

Home Information Pack – HIP

What is a HIP & what does it contain?
All Domestic houses and flats first marketed for sale since 14th December 2007 require a Home Information Pack and from April 2009 this must be available prior to marketing the property.

The pack pulls together the normal legal documents and searches carried out on the property but at an earlier stage in the process than was previously the case. The costs incurred by the seller to provide the HIP will in most cases be offset by the savings made on the searches and enquiries that will have been carried out on the property they are intending to purchase.

The Home Information Pack Regulations 2006 set out provisions on the “required” and “authorised” content of the Pack. The required documents must be included in the pack where appropriate and authorised documents may be included at the seller’s discretion. In April 2009 these provisions were revised.
 

Home Information Pack requirements  effective 6th April 2009

Effective from April 6th 2009, there are some subtle changes to the Home Information Pack legislation that could bring added benefit to the existing HIP via some modifications including the Property Information Questionnaire (PIQ) which is now a required document.

The Required Documents are:

• An index (i.e. a list of the contents of the Pack)
• A sale statement (summarising terms of sale)
• Evidence of title. Who owns the property?
• Standard searches (i.e. local authority enquiries.)
• Drainage and water search.
• An EPC
• A Property Information Questionnaire - PIQ
• All searches, whether produced by a local authority or a search company, must be complete with no gaps in the data covered by insurance.

To be able to market your property a minimum of the following documents must be in place and available:

• Index
• Property Information Questionnaire (PIQ) 
• Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA) for new homes marketed before completion
• Sustainability information (new homes only) 
• Sales Statement 
• Evidence of Title - HMLR Title Plan and Register. For unregistered properties a search of the index map must be included.

The remaining documents namely the standard searches, a copy of the lease and unregistered documentation (where necessary) must be completed and included in the HIP within 28 days.

The Authorised documents include:

• Guarantees and warranties
• A Home Condition Report.
• Other searches.

An authorised document is available to the seller to top up their Home Information Packs voluntarily to include additional material where they judge that to be of interest to prospective buyers.

The response to date has been mixed as one has come to expect with HIPs. It has been reported that even the National Association of Estate agents (NAEA) who have been generally anti-HIPs have soften their view, though mainly towards the introduction of the PIQ.

Chris Brown, President of the National Association of Estate Agents (NAEA) said;
“On the basis that local searches were moved back in the process, we did agree that consideration should be given to the introduction of a PIQ.”

A Head of Residential Sales from a large organisation remarked:
“The timing is curious but the principle is sound. Ultimately, we hope that transparency will lower the fall-through rate, when buyers change their minds as they unearth more details. In the long-run, Hips should speed up the sales process.”

EPC Solutions are fully prepared for the changes and include an online Property Information Questionnaire which will be made accessible to all our clients.

Criticism has been made that the Home Information Pack does not provide a great wealth of information to the ‘typical’ buyer, the Property Information Questionnaire certainly helps to tackle that issue.

The changes detailed above are not to be feared but embraced. Lets welcome positive change, improvements and the development of the home buying and selling process.

Please contact us to discuss how we can meet your HIP needs