ENERGY PERFORMANCE CERTIFICATES ANDHOME INFORMATION PACKS

Announcement : Home Information Packs
22 May
Communities Secretary Ruth Kelly this afternoon made a statement to the House of Commons on the implementation of Home Information Packs and Energy Performance Certificates. Read a copy of the press release, the full Ministerial statement, and updated Q&A below.
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Press statement: ENERGY PERFORMANCE CERTIFICATES ANDHOME INFORMATION PACKS
The Government is today announcing that we will be implementing Energy Performance Certificates (EPCs) and Home Information Packs (HIPs) from 1 August instead of 1 June. The Government has also reached an agreement with the Royal Institution of Chartered Surveyors (RICS) on their judicial review of Energy Performance Certificates.
The Judge, considering the application for Judicial Review by RICS, had issued an Order preventing EPC's from being included in HIPs from 1 June until a court had fully considered the RICs application.
We did not consider it to be acceptable or practical to delay the introduction of EPCs in this way.
We have always made clear greater transparency in the housing market and tackling climate change goes hand in hand. In addition, we have created a new energy assessor workforce - the majority of whom expect to start work in June.
We have therefore been in negotiation with RICS in order to avoid a lengthy delay as a result of the legal process. The Government can today announce an agreement has been reached.
The Government will revise regulations and implement the following changes -
- HIPs and EPCs to start on August 1, implemented on a phased basis. From August 1 packs - including energy performance certificates - will be required for the sale of four bedroom properties and larger. These are the properties which are the most energy inefficient. We will phase in packs for smaller properties as sufficient energy assessors become ready to start work.
- Until the end of the year, we will allow people to market their properties as soon as they have commissioned a pack - rather than making them wait until they have received them.
- As a temporary measure, we will allow EPCs to be up to twelve months old when the property is put up for sale and will consult further on the long-term arrangements for the age of EPCs.
- We will also be inviting councils and registered social landlords to work with us to introduce EPCs on a voluntary basis in social housing, for example at the time of stock transfers. The Government will therefore lead the way in efforts to tackle climate change, whilst providing work for energy assessors in advance of the full implementation of HIPs and EPCs.
Towards the end of the year we will assess the implementation of HIPs and consider what further steps might be needed to maximise the reduction in carbon emissions and drive forward the reform of home buying and selling.
This assessment will be informed by the operation of the market from 1 August; by the results of the area trials; and by a further consultation on the next steps in implementing HIPs and EPCs, which we will begin in the summer.
Communities Secretary Ruth Kelly said:
"We are pleased we have reached an agreement with RICs and potentially avoided a lengthy court case and months of delays.
"The approach we have set-out preserves the principles of HIPs and EPCs, while ensuring a transition period for the people buying and selling their property. Most importantly, it provides an opportunity to make real progress towards cutting carbon emissions from our homes."
Housing Minister Yvette Cooper said:
"Energy ratings for homes will help cut carbon emissions and family fuel bills. Given the serious threat from climate change, it would not have been acceptable for energy certificates to be subject to long legal delays and uncertainty."
Today we are also publishing the latest figures on energy assessor numbers, we now have 2,500 in training, a further 3,200 who have passed their exams, and 1,500 who have been accredited or have applied for accreditation but only 520 of these have been fully accredited. For implementation on 1 June, we would need more than 2,000 to be accredited.
Whilst more than enough are in the system, the current uncertainty caused by this legal challenge and the campaign of misinformation by opponents have had an impact on the numbers of energy assessors who are waiting before paying out for accreditation. The phasing in of the programme will ensure that the numbers of assessors matches the need in the market place.
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Home Information Packs: Ministerial Statement 22 May
With Permission, Mr Speaker, I would like to update the House on the Government's proposals for the implementation of Home Information Packs.
It had been the Government's intention to implement Home Information Packs, including Energy Performance Certificates, on 1 June.
In debate last week, reference was made to the Judicial Review requested by the Royal Institution of Chartered Surveyors. This Judicial Review focussed on Energy Performance Certificates - not Home Information Packs.
On Wednesday, the judge issued an interim order, which was received by my Department on Thursday. That Order would have effectively prevented the introduction of Energy Performance Certificates on 1 June, while the case was being considered.
The Government believes that introducing Home Information Packs without Energy Performance Certificates would be neither practical nor acceptable. It is important to introduce Energy Performance Certificates and Home Information Packs at the same time, because cutting carbon emissions should go hand in hand with market transformation.
We have been in detailed discussion with RICS to prevent lengthy legal delays. Both the Government and RICS are committed to the swift and smooth introduction of both Home Information Packs and Energy Performance Certificates. I am pleased we have today reached a pragmatic way forward that gives certainty and allows us to get on with implementation.
As a result, we are therefore proposing to withdraw the Home Information Pack regulations in order to clear the way for successful implementation of revised arrangements.
Although the issue of the judicial review is now resolved, long-running uncertainty has already had an impact on the numbers of energy assessors. For implementation on June 1, we would need at least 2,000 to be accredited, with over 2,500 by the end of the month. Today I am updating the House with the latest figures. There are over 2,500 people currently in training. A further 3,200 have already passed their home inspector or domestic energy assessor exams. Of those, 1,500 have been accredited or have applied for accreditation but only 520 of these have been fully accredited. These figures show that the number of assessors is unlikely to meet our needs for 1 June implementation. Equally, they show that in the long term, there will be enough assessors to meet demand.
The Government remains convinced of the importance of Home Information Packs and Energy Performance Certificates. Home Information Packs will cut costs and delays in buying homes. Energy Performance Certificates will help reduce energy bills and cut carbon emissions from our homes, which, as they make up 27% of our national carbon emissions, could make a big difference in our effort to tackle climate change. The measures in Energy Performance Certificates will cut carbon emissions by nearly a million tonnes every year.
I have always said that the right test of the legislation should be how it brings benefits for consumers and how it protects the environment. Today, therefore, I am setting out a practical way forward.
I propose to change the start date for Home Information Packs to August 1, and intend to phase its introduction.
From August 1 Home Information Packs - including energy performance certificates -will be required for the sale of four bedroom properties and larger. These are the properties where there is the greatest potential to make energy efficiency savings. This will ensure work for those energy assessors who have already been trained and accredited.
We will extend to smaller properties as rapidly as possible, as sufficient energy assessors become ready to work. As we see the number of accredited assessors rise, so more properties will be included in the system.
We are also introducing a number of transitional measures.
First, until the end of the year, we propose allowing people to market their properties as soon as they have commissioned a pack - rather than making them wait until they have received them, in order to avoid unnecessary delays when the systems come in.
Second, to allow energy performance certificates to be implemented at the earliest opportunity, we will make amendments to allow Energy Performance Certificates to be up to twelve months old when the property is put up for sale - extending the current three month age limit.
Third, we are inviting councils and registered social landlords to work with us to introduce Energy Performance Certificates on a voluntary basis in social housing, for example at the time of stock transfers. This will also provide work for energy assessors at an early opportunity.
I will shortly bring forward revised regulations to implement the changes I have outlined.
Towards the end of the year we will assess the implementation of Home Information Packs and consider what further steps might be needed to maximise the reduction in carbon emissions and drive forward the reform of homebuying and selling.
This assessment will be informed by the operation of the market from 1 August; by the results of the area trials; and by a further consultation on the next steps in implementing Home Information Packs and Energy Performance Certificates, which we will begin in the summer.
Mr Speaker, the approach I have set out gives clarity to everyone about the next steps.
It delivers Home Information Packs and Energy Performance Certificates, removes uncertainty for energy assessors and others, and ensures a smooth transition for the people buying and selling their property.
Most importantly, it provides an opportunity to make real progress towards cutting carbon emissions from our homes.
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Q&A for ENERGY PERFORMANCE CERTIFICATES ANDHOME INFORMATION PACKS
Q.The judgement was only about EPCs - why can't you do HIPS on their ownA.As the statement said, the HIP and EPBD regulations are tied together. They could not be separated quickly, and that would have made no sense given the package we have announced.
Q. Why don't you just scrap this failed policy?A. We believe that tackling carbon emissions from homes and getting a better deal for home buyers and sellers is the right thing to do. Key green groups - e.g. FoE and WWF - agree. That is why we have taken pragmatic steps to address concerns whilst preserving the principles of HIPs and EPCs and ensuring a smooth transition for the market.
Q. Why don't you just fight RICS in the courts if you are so confident of your case?A. We have reached an agreement with RICS which gives us a pragmatic way forward and will prevent lengthy legal delays. Both we and they are committed to the swift and smooth introduction of both HIPS and EPCs.
Q. Are you just doing this because there were not enough energy assessors?A. The recent uncertainty created by the court case and deliberate attempts to disrupt delivery of the programme have meant that some assessors have adopted a "wait and see" approach before signing the cheque to become accredited. The approach we have announced today should give them the reassurance they need. There are over 2,500 people currently in training. A further 3,200 have already passed their home inspector or domestic energy assessor exams. Of those, 1,500 have been accredited or have applied for accreditation but only 520 of these have been fully accredited. So there are more than enough in the system, and the phasing should allow us to build up numbers in a way which matches need in the market place.
Q. If you are consulting now, why didn't you consult in the first place?A. EPCs originally formed part of mandatory HCRs, and consultation was on that basis. When we separated the EPC from the HCR last summer we did not change the existing policy on the age of certificates. Consumers will take more notice of up-to-date information.
Q. There will not be any work for energy assessors until 1 August.A. 1 August phasing date is designed to ensure we have enough assessors in place to meet demand for EPCs. From August 1 packs - including energy performance certificates - will be required for the sale of four bedroom properties and larger. These properties - where there is the greatest potential to make energy efficiency savings - will ensure work for those energy assessors who have already been trained and accredited.We are also inviting councils and registered social landlords to work with us to introduce EPCs on a voluntary basis in social housing, for example at the time of stock transfers. This will also provide work for energy assessors at an early opportunity.


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