There can be little doubt that without the vehicle provided by the Home Information Pack, the Energy Performance Certificate would have over the past year or so struggled. Its impact on reducing carbon emissions and on presenting home sellers and buyers with upfront information on the energy efficiency of property would have been far less. This can be stated with an air of confidence, given the outcome of a recent survey carried out by the OFT that shockingly disclosed that one out of every two properties in Northern Ireland, where there is no HIP, is marketed without an EPC!.
The Conservative Party says it will retain the EPC and look to adopt the Northern Ireland model. This can only, given the Northern Ireland experience, strike fear in the hearts of many energy assessors as without the HIP there exists a real danger of assessors seeing less work as well as experiencing lower charges. As the market is currently flooded by assessors there would be commercial factors at play that could force the price of an EPC down even further.
This begs the question of how low can an energy assessor realistically afford to go when it comes to fixing a fee?
One assessor has carried out an analysis of the costing behind undertaking 521 EPCs over the last 8 months. Applying the average overheads incurred during this period to what is fast becoming an average ‘panel’ fee for an EPC of £30, the figures show:
‘Panel’ Fee £30.00
Less Overheads
Lodgement fee £-6.15
Accreditation fee £-2.50
PDA Fee £-2.00
Mileage Allowance £-3.17
CPD (£250pa 500 EPCs) £-0.50
Phone Costs £-1.00
Advertising £-0.14
Travel, meals £-0.19
Net fee per EPC = £10.65
The situation becomes even bleaker when applying this figure to the actual time involved in producing the £30 EPC.
Applying the fee to a 3 bedroom house, and a one off job, the time involved for straight forward EPC survey is:
Travel to and from site 30 minutes
Time on site 45 minutes
Administration 10 minutes
Total 85 minutes
The above produces an hourly rate of £7.52 which if then extrapolated out to an 8 hour day equals £60.14. Assuming there are 190 days during a working year (220 less 30 days for public and personal holidays) this gives rise to £11427pa gross wages – just £3,000 over the annual minimum wage!
However, to achieve this modest return the energy assessor would be required to carry out 1073 EPCs at £30 gross which works out at around 6 EPCs every working day. The question is how many DEAs are undertaking 6 EPCs a day every day of every week? Not many!
Some energy assessors believe that fees will increase if HIPs are abolished. The truth is that by removing the HIP work levels will fall and market pressure will force the EPC price down even further. At least the HIP has provided many energy assessors with the opportunity of maximising the return on their inspection with some earning around £100 to £150 on each transaction.
You forgot to think that if HIP dissapears so will HIP providers who are responsible on a big degree how this market has gone so disastrous.
ReplyDeleteI don't know how you arrived at the figures for the time required for an EPC. 45mins on site for me would represent a small two bed flat or a simple rectangular modern house, without the distraction of a householder and/or a family 'assisting'. In my experience is nearer 60-75mins. I don't use a PDA because I like to examine the data carefully to ensure accuracy. I spend an additional 45mins in the office calculating areas and perimeters and allowing time for lodging. I have a very rural practice so travelling is a significant cost both in time and money. My maximum number of EPCs a day is four. As a result I don't do £30 EPCs. I still get work, just not as much as I'd like but at least I don't make a loss whichI would at £30 per EPC. May I also make the point that the same outfits that only pay the DEA £30 charge £70-£90 to the public! What a rip off!
ReplyDeleteSince the EPC was first introduced DEA's have been inundated by training providers trying to sell us dodgy courses at even dodgier prices. Panels trying to get us working for nothing and then not paying anyway!Software providers trying to get us to use a PDA and charging £2.00 a go. The latest is "CPD providers" who try to charge money for something that can be achieved quite easily for nothing! How long do I have to go on for?
ReplyDeleteThen we're asked to join the HIP reform Group to "save our industry" At least it didn't cost anything!
When we find out more about this group it turns out that a group of HIP providers are behind it, precisely the people who have (a) driven down the price of an EPC to a point where it is impossible for a DEA to make a living out of it &(b)have the most to lose if HIP's are abolished. These people are now trying to get us to back their vision of a watered down HIP where guess who does the running around for "a HIP code registered facilitator" that they call "an advisor". Now who do you think the "advisors" will be? Got it in one!
HIP's do need further development (not reform)so that instead of cutting transaction times by a few days(questionable anyway)cut them by an amount where vendors, estate agents & solicitors think they are actually worth having.I'm talking about exchange ready HIP's. DEA's are in a unique position to provide this type of product as we are the ones who actually visit the property & know if a property needs planning permissions, building regulation approvals etc. We talk to the vendors and can ask if they have these documents that go a long way to making a HIP exchange ready. Large HIP providers can't do this. By either doing our own personal searches or tying up with a personal search agent & then making an arrangement with a solicitor/conveyancer we can deliver a product that is (a) what the industry really needs and (b) makes us a decent living.
Whoever wrote the above statement needs to get a life and understand what is actually the problem.
ReplyDeleteWhingers like you are the problem
This is most worrying.
ReplyDeleteFor my own part my breakdown is:
Average Fee per EPC £53.30
No EPC/year 168
Equipment £0.02
Printing £1.68
Membership/registers £1.03
Promotion £3.80
CPD £0.35
Telephone £1.65
Internet £0.09
Postage £0.39
Papers £0.43
Travel £2.00
Submission £7.04
Total overheads £18.46
Income per EPC £34.85 (before Tax, office costs (& repayment for training!)
Total Time for EPC 2 hrs 20 min
Hourly rate £14.95
Last year I made £5.8k gross and self-assessment is due at the end of Jan!
I make up my living from doing 3 other jobs as DEA doesn't pay.
In six months time no independent DEA will be working. Let the EAs do it.
ReplyDeleteWell what a mixed set of replies. It is certainly a challenge being a DEA, expensive to stay accredited if your only part time and not enough volumes to deliver 37 hours of work a week.
ReplyDeleteUsing a pda makes a DEA very efficient, the additional cost factor is nore than outweighed by the time saving 45minutes for a 3 bedroom semi (vacant) is from arrival to departure. Lodgment then takes place as you drive to the next property. the only thin left to do is create the invoice when you get home.
Obviously as soon as one finds a glazed sunroom, two extensions, alternative walls etc; the time extends but I reject the comment regarding "prefering accuracy" of a manual EPC. The pda is highly accurate, especially for non rectangular rooms and properties with varying ceiling heights.
Could you complete 13 EPCs on seperate 1 & 2 bedroom flats in one 8 hour period, including lodgement using pen and paper? well you can with a pda.
RIP the HIP!
ReplyDeleteAll DEA's will be better off without the Panels who have forced our fees lower and lower!
If the HIP is abolished then EU Directive 2002/91/EC remains in force - requiring the EPC. EPC production costs will rise to adjust for the loss of revenue but I can see EPC Fees being bundled in with other services. We (Fridays Property Lawyers) would look hard at providing a Free EPC with Conveyancing if the HIP was abolished.
ReplyDeleteThe Hip is a waste of time and the EPC is a waste of time. The Labour government were basically trying to clear the dole ques and get a little bit of income. As an agent we seemed to do quite well with out them, so there was no need to introduce them. The Hip doesnt even include the leasehold information pack for lease hold properties. But to bring out EPCs for rental properties was laughable.
ReplyDelete