Thursday, 24 May 2012

Hip new rules

HIPs may be history but social landlords still need to watch out for Energy Performance Certificate rules, says Sheila Whitton

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There is some good news for registered providers and the housing market. Communities secretary Eric Pickles and housing minister Grant Shapps announced that from 21 May, home information packs are suspended.

Primary legislation for a permanent abolition will be introduced at a later date and include a consultation.

Unless you can cancel already commissioned HIPs you are stuck with the expense for now, but from now on registered providers will only need to provide an EPC at a considerably reduced cost.

However, the energy performance certificate will survive the cull, with additional provisions. The government has no choice on this matter as the certificate was created as a response to the EU directive 2002/91/EC on the energy performance of buildings.

The government has laid before parliament the energy performance of buildings (certificates and inspections) (England and Wales) (amendment) regulations 2010 which will introduce new requirements including:

  • A burden to commission the EPC before marketing the property, if one is not already available (EPCs are valid for 10 years)
  • A commission is when a domestic energy assessor has been instructed to prepare the EPC and paid or an undertaking to pay is given
  • The person acting on behalf of the seller is to be satisfied that an EPC has been commissioned before marketing the property
  • The seller and a person acting on their behalf must make reasonable efforts to secure an EPC within 28 days.
  • All the new duties carry fixed penalties for breach of the new regulations

Sheila Whitton is a partner at Mace and Jones
sheila.whitton@maceandjones.co.uk

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