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Trials highlight satisfaction with Home Information Packs and buyers acting on energy ratings

Published 6th March 2008


Download Home Information Pack Area Trials - Research Report
PDF, 959 kb , 106 pages


Consumers were satisfied with the Home Information Pack (HIP) and are starting to use energy ratings to make their homes greener, according to early testing of HIPs.

Results from research by Ipsos MORI into the HIP area trials reveal that:

• 72% of sellers were satisfied with the HIP
• 79% agreed that it contained everything expected, and
• 81% understood the documents, including their energy rating, from A-G, in the Energy Performance Certificate (EPC).

Nearly one third of buyers on examining the HIP planned to carry out recommendations in the EPC to improve the energy efficiency of their home. This would equate to nearly half a million transactions per year in today's housing market where consumers took action as a result of the EPC to cut fuel bills and carbon emissions.

The research report highlights that 58% of buyers would have liked the opportunity to see the HIP earlier in the process. However, agents were either not showing the packs or providing them too late to consumers to make a difference, according to the findings. Out of the 40% of buyers who saw the HIP last year in the trials, half viewed it after they made an offer on their property.

The Government has already taken action to raise awareness of HIPs and to remind agents of their responsibility to make sure it is readily available so more people fully benefit from the packs. This includes a public information campaign and specific activity aimed at the industry, including more than 20,000 agents.

Consumers can only benefit if they see the pack. We know the appetite is there because nearly 60% of buyers wanted to see their HIP earlier and 32% planned to take action on examining the EPC - it is important agents respond to this.

Housing Minister Caroline Flint said:

"Consumers are already benefiting from the introduction of HIPs. Search costs are falling as a result of increased transparency in the market, energy ratings can help people to reduce fuel bills, and first time buyers are receiving important information about their home for free.

"I welcome the fact that buyers are starting to act on their energy ratings, which could cut a million tonnes of carbon a year as well as helping families with their fuel costs.

"However, what is clear from the trials is that more buyers wanted to see the HIP but it was not always made available to them. That's why we have taken action to increase awareness of the consumers' right to see a HIP and to remind agents of their responsibility to provide the pack."

The Government has responded to emerging findings throughout the research period which tested around 2,600 HIPs, to help develop the packs and to ensure a smooth implementation into the market. This includes decisions to introduce a first day marketing exemption, temporary measures on leasehold information, and work with industry to make sure packs are being made available to consumers.

Early monitoring shows implementation of HIPs has gone smoothly.

* The average cost of a HIP is between £300 and £350, costs which apart from the EPC are already part of the home buying and selling process.
* The majority of HIPs are being provided within 14 working days.
* More than 370,000 HIPs have now been prepared.

Consumers buying new homes will additionally benefit from the mandatory inclusion of a rating against the Code for Sustainable Homes in the HIP from May 1st, which will add significantly to the environmental performance information in the pack.

To help continue the smooth implementation of the packs into the market, the Government is extending the use of insurance cover where property search data is unavailable, from 31st March to 31st December 2008. The Government is currently consulting on new guidance on access and charging to help ensure a level playing field in the delivery of good quality searches at competitive prices.

Summary

1. The Area Trials took place between November 2006 and April 2007. They were established to test, adapt and refine the processes involved in producing a HIP, to help ensure a smooth implementation. The trials were conducted in 8 areas: Bath, Newcastle, Southampton, Northampton, Huddersfield & Cambridge, Southwark and North West Wales. Ipsos MORI were commissioned to undertake research into the HIP to track the sale process and monitor perceptions. The final phase of the trial research, which involved interviews with buyers following completed transactions, was carried out in December 2007.

source www.communities.gov.uk