Sunday, 23 May 2010

Kirstie Allsopp and Grant Shapps - you should both feel very ashamed

Sorry for the time it has taken me to update my blog  - it  has been a very busy period... but I am now back!


The 'C' rated TV celebrity, Kirstie Allsopp, and the Yorkshire Wheeltapper and Shunters would be front man MP Eric Pickles could not resist the opportunity last week to gloat at the massive job loss, financial ruin and general misery inflicted by the government’s decision to suspend the HIP regulations.



A cheap PR stunt and one which Grant Shapps the Minister of Housing had held in the run up to the election. The only difference this time was that we were looking at the announcement of government policy.



Why wheel out Kirstie Allsopp? What has she achieved in her short TV life time to improve our ailing home buying process? Did I miss something; was she recently elected as an MP? She should be ashamed of herself getting involved in party style celebrations surrounding the wholly unnecessary demise of a well established industry employing over 3000 people.



What makes this even more difficult is the fact that it was not too long ago that Miss Allsopp was proclaiming the very same benefits that were actually being delivered by the HIP. She professes to be a housing expert but when it comes down to it she is nothing other than a hired gun. Let's wheel out Kirstie she will make the delivery of a decision which we know will destroy people’s life more palatable to the public. Sorry Kirstie you have been used and your integrity must as a result be damaged.



I wonder if Mr Pickles, who was clearly out to make a name for himself (as up until then he has was always the drummer in the band), told Kirstie when she was hired the real truth. Did he tell her that his colleague Grant Shapps had made a written commitment to the HIP industry that he would consult before taking any action to suspend? A promise which he has broken.



The word of a MP is never a reliable one, but in a government which purports to be based on the principle of fairness one just has to wonder what lies ahead for us all.



So what now? Not much really other than trying to pick up the pieces and getting on with life. Yes there will be a consideration of legal options, but at the end of the day one has to begin to accept that the industry was the victim of political spite and goal scoring. Not sure why anyone in the future will feel safe in investing time and money in any new government led venture.



One final message - let's get our party hats ready as I am sure future policy implementation for government will not be this easy! What goes around comes around!



For those interested in joining the legal action group please contact David Jones at davidjones@m-j-p.co.uk

Thursday, 6 May 2010

Jumping the gun, or sheer arrogance?

On the day when the electorate goes to the polls to decide who should be the next government I find myself once again having to highlight the shortcomings of one of  my local MPs.



Picking up last week’s local property supplement I was shocked to find Chloe Smith, the local Conservative MP, passing to the public what is clearly a highly misleading statement about the Conservative’s intention to ‘scrap’ home information packs. Leaving to one side the arrogance, in line with that seen in the Times at the weekend with David Cameron preparing his diary in readiness for when he becomes Prime Minister, to say as she did, HIPs would be history within 2 weeks of her party becoming the next government was totally wrong.



There is no possible way that any government could pass legislation that quickly, even if we were talking about a government with a large working majority! Making such a statement highlights a frightening lack of knowledge of parliamentary process, as well as a total disregard to how such a statement could very well contribute to a stalling of the still delicate property market.



No one will really know until tomorrow or the weekend what is likely to happen on the political front, but if the Conservatives do succeed and are able to govern, given what is happening in Greece, and bearing in mind the much more important debt related issues, I really can not see that the HIP will be top of the target list. I may be mistaken, but if I am it really says all you need to know about Conservative priorities!



I am also startled about the failure of this recently appointed MP to make statements without thought for those within the industry working within local constituencies who through no fault of their own will be adversely affected by a policy that is now clearly out of line with current line of thinking of a growing number of property professionals. Job loss and a clueless destruction of entrepreneurship spirit simply do not register on the radar. Clearly potholes are far more important!



I say this is outdated policy because within recent weeks we have had staunch attackers of the HIP come out and say that now the HIP has had time to bed in, and as the market has recently picked up, perhaps it would be rash to simply abandon the HIP without first pausing for thought. As I have said before, ironically, if the HIP goes that the cost of moving will not decrease, but will increase by around £100. Moreover the time it takes to get into your new home will be much longer. On top of this will be the misery of a return to an increase in failed transactions and the loss of money that goes with it.



I just wish we could for once rely on a politician to tell us the whole story!

Tuesday, 27 April 2010

Lib Dems proposals on HIPs and EPCs lack independent thought


Dare I say it, is there a possibility of the Country waking up on Friday of next week to a Lib Dem Government? Unlikely but there is no escape from the probability that the Lib Dens will feature in some shape or from within the next administration.  So where does that leave the HIP industry and how do the Lib Dems view the HIP and EPC?

Up until the publication of the Party’s manifesto, it was understood at quiet high levels that the Party had not formed a view either way on whether the HIP should be retained.  The inclusion of a pledge to scrap the HIP within the manifesto therefore emerged as a surprise to many of us, including it is interesting to note, a high number of Lib Dem candidates.

The question of whether this unexpected pledge is down to well thought through and generally supported policy, or an over jealous central office official, has yet to be answered. What we do know however is that the future of the HIP is likely to be well down the list of priorities if as likely, we are left with a ‘balanced’ parliament.

In a letter passed to me recently written by a Lib Dem candidate we do find some further clues on the Lib Dem way of thinking on energy.  Unfortunately the author of the letter in the opening passage makes only a passing mention to HIPs commenting that they ‘play no useful role in the housing market…’ Not much there to assist but the letter does provide a quite useful insight into the Lib Dems plans for the EPC.

The good news, though given the European requirement it should come as no surprise, is the Lib Dems will retain the EPC and will require it to be produced ‘during the conveyancing process’.  Not quiet sure what this means, though I suspect the requirement will be for the EPC to be produced prior to exchange of contracts. 

Other measures mentioned in the letter which uncannily mirror some of the Tory proposals include the availability of low cost loans to bring empty and run down property back into the social housing arena, a national programme to insulate more homes, as well as a loan scheme similar to the Conservatives’ Refit proposal providing house owners with loans repayable over 25 years.

There are other measures mentioned though there is little on substance as regard compliance.  Moreover, there is bad news for the Home Inspector with the Lib Dems apparently having no plans to reintroduce the Home Condition Report. The author does not ‘…believe that they would be viewed as a credible source of information by homebuyers particularly given the confused way in which HIPs were introduced by the Government’.

This all in my views smacks of plagiarism, as much of what is contained within this letter seems to reflect Conservative policy.  It’s a shame a party that prides itself on independent thinking has had to rely on the thoughts of others, mainly it would seem at the expense of job loss and disruption within an industry that has over the past 6 months finally found its footing. 

The letter in full

‘Thank you for contacting me about Home Information Packs (HIPs) and Energy Performance Certificates (EPCs).  We do not believe that HIPs play a useful role in the housing market with the exception of Energy Performance Certificates.  We will therefore retain EPCs which we believe to be useful, simple and essential in helping reduce the 27% of the UK’s carbon emissions, which come from our homes.  We will require an EPC to be produced during the conveyancing process and we believe that this requirement will ensure full compliance with the requirement to produce an EPC.   As well as our own committment to EPCs, the requirement to produce an EPC every time a house is bought, rented or sold is also mandated under EU law.  You should therefore feel confident that the market for EPCs will continue.

Liberal Democrats have a number of proposals to improve the energy efficiency of UK homes:
  • We will bring 250,000 empty homes back into use with cheap loans and grants through a £1bn Social Homes Fund that will provide grants for properties brought back into use as social housing and a £200 million Private Housing Fund that will provide low-cost loans to bring empty properties back into use in the the private sector.
  • We will begin a national programme to insulate more homes paid for by the savings from lower energy bills and make sure every new home is fully energy efficient by improving building regulations.
  • We will support homeowners to create warm and environmentally-friendly homes by setting up a privately funded scheme which will enable the costs of energy efficiency measures to be repaid over a period of up to 25 years. Eligible homes could be retro-fitted with home improvements costing up to £10,000 per home such as loft, wall and floor insulation, as well as energy efficient lighting, heating, windows, and doors.
  • We will also launch an ‘eco-cashback’ scheme during our first year in government to give people £400 towards energy efficient home improvements and small energy generation projects. People will be able to apply for the cash to help pay for double glazing, boiler upgrades and micro generation such as solar panels, and domestic wind turbines.
  • We will reduce the cost of repairs and improvements by equalising the rate of VAT on new build and repair on an overall revenue-neutral basis.

With respect to improving compliance with EPRs, I understand that non-compliance principally arises in the commercial sector.  I support efforts to ensure greater awareness of the requirements and also encourage Trading Standards to ensure that appropriate enforcement action is taken.  The law requiring EPCs for commercial properties has been in place since April 2008 and it is unacceptable that compliance falls well short of universal levels, two years after implementation.

On your final point with respect to Home Condition Survey, I do not support the mandatory introduction of these as I do not believe that they would be viewed as a credible source of information by homebuyers particularly given the confused way in whcih HIPs were introduced by the Government.

I hope that you fine the information above useful and that you are reassured of the Liberal Democrats' commitment to EPCs.


Monday, 26 April 2010

Letter to energy assessor suggests the Conservative Party has given further thought to life without HIPs

The Conservative Party is still determined to abolish the Home Information Pack but according to a recent letter received from a Prospective Parliamentary Candidate it will be the Party’s intention to ‘....introduce innovative ways to help home buyers, including speeding up the introduction of e-conveyancing and facilitating more competition in the local authority search market’.

In the same letter sent by an energy assessor in response to concern expressed about the Party’s policy on the HIP and EPC, the PPC advised that the EPC would no longer be required before marketing, with the only condition being that the EPC has to be commissioned before that stage. The PPC put this possible Party decision as following: ‘Energy Performance Certificates (EPCs) would be retained, but they would last up to ten years and a home could be put on the market provided an EPC had been commissioned (rather than requiring an EPC to already be in place)’.

No cheer but at least we have a hint of the Party’s future steer on the HIP and the EPC. It’s a shame however that in the run up the election we still do not know for certain when the HIP would go if the Conservatives gain power and whether they would look to keep the HIP in place until the ‘innovative ways to help home buyers’ are put into place. It would also be good to hear whether there are plans to avoid the domestic EPC market turning into the same mess with compliance as witnessed in the commercial sector.

The truth is nobody can make any serious business plans until the election is over, and a clearer picture of the governing party or parties’ policy on matters affecting our industry emerges.

Full Letter:


We will abolish Home Information Packs. However, we will seek to introduce innovative ways to help home buyers, including speeding up the introduction of e-conveyancing and facilitating more competition in the local authority search market). Energy Performance Certificates (EPCs) would be retained, but they would last up to ten years and a home could be put on the market provided an EPC had been commissioned (rather than requiring an EPC to already be in place).

EPCs would also support our Green Deal. This will give every household in Britain the right to have home energy efficiency improvements worth up to £6,500. The upfront costs will be privately financed by banks and investment funds; and repaid over a period of up to 25 years through the savings on energy bills. A typical home could see around £20 a month knocked off its bill.

In business, I believe change brings opportunity. You are already well position in the EPC market, and I would hope that the other policies in this field could be areas of expansion for your business.

Friday, 23 April 2010

Property experts overwhelmingly come out in support of the HIP

It has been so easy for Grant Shapps and the other opponents( who seem to be diminishing in numbers) of Home Information Packs to use ‘self interest’ as a weapon whenever a supporter dares to step forward with evidence and intellectual argument on why the HIP should be retained. Indeed this week saw the continuation of an argument started last week when Mr Shapps took it upon himself to challenge, on this very basis, the integrity of a poll commissioned by AHIPP and carried out by IPSOS MORI.

Mr Shapps seems however, based on news emerging yesterday, to be boxing him into a corner with this policy. In a vote of around 100 industry leaders, at The Land Data Great Housing Debate held in Westminster, only four members of the audience voted to scrap HIPs while the majority supported the motion to adapt but not scrap them.

One of those experts, David Newnes, managing director of leading estate agency chain, Your Move, said HIPs had helped stem transaction fall-throughs this year and last, with the rate of exchanges significantly improving from around 33% each month to around 42%.

This is good news for those like the Hip Reform Group who have been tirelessly campaigning over the past 12 months for the HIP to be retained and for discussion to take place on how the HIP can be improved for the benefit of the consumer.

Hopefully the strength of support shown by such a large body of property professionals will at long last begin to register on Mr Shapps’ radar.