HIPs have just celebrated their second birthday and regardless of the on-going criticism from the usual suspects, the reality is that two years later, they are an integrated part of the home buying and selling process and they are working well for consumers. As we have reached this anniversary, it is now up to industry and Government to work together to further improve the packs for the benefit of all involved.
Whilst the Tories have this month come out again and declared their intention to scrap HIPs, they should be considering the different elements of the packs and the impact they have already had. Despite some negative press coverage and political opposition, professionals (and not just HIP providers) in the industry favour the ‘adapt, don’t scrap’ principle towards HIPs. A growing body of research shows that consumers have not only bought into HIPs but that EPCs are an incredibly useful and integral element of the packs. Research has also shown that Energy Performance Certificates have a positive impact on the behaviour of consumers towards energy efficiency in their homes, resulting in tangible carbon emission reductions. This is a good example of an important element just not receiving sufficient attention when it comes to the wider debate.
EPC’s – Demonstrably delivering benefits
Domestic energy consumption and efficiency are key areas which the UK is looking to improve upon in order to meet its climate change targets. Given that
over 25% of UK carbon emissions are produced by domestic properties, it is vital that consumers understand the full benefits of the EPC and exploit its
potential when moving home.
The EPC is designed to inform consumers about the energy efficiency of a home and can therefore act as a tool for estate agents in promoting properties. When 95% of properties marketed for sale have an EPC it is important to consider the consumer reaction - do they really care about the green credentials of a property? Do they read or act on the recommendations?
Soon to be released research into the habits of people looking to move home indicates that a majority remember seeing the EPC during the home moving process and will make some of the recommended changes immediately or in the near future. If approximately 40% of homebuyers made energy efficient changes to their home such as improving loft insulation, installing double glazing or better wall cavity, England and Wales could most definitely be on the road to reducing carbon emissions.
And it's not just government officials that are crunching these numbers, these factors are important for homebuyers too. A recent YouGov survey of 2,306 adults for the New Homes Marketing Board showed that energy efficiency is one of the most important attributes buyers want from a new home. Coming third only to outdoor space and a garage, energy efficiency was judged more important than even value-for-money. This again proves the worth of EPC's – if homebuyers are concerned about the green credentials of their potential home, surely our industry should be harnessing this as a marketing device?
EPC's – The Opposition response
The Conservatives haven’t hidden the fact that if they come into power not only do they want to scrap HIPs but they plan to move EPCs to the end of the
home buying and selling process. This could have a potentially disastrous effect on the progress that has already been made, not to mention being in breach
of European law relating to the energy efficiency of homes. I am not alone in this thought: a ‘snapshot survey’ of 22 industry stakeholders, only one of
which (AHIPP) has a vested interest in the provision of HIPs, showed that 17 stakeholders (77%) felt that moving the EPC to the end of the process would
be a retrograde step. If you think of how the process would be affected, it would be similar to buying a car and only getting details of its mileage once
you have made the purchase and secured the finance. It just doesn’t make practical sense. In fact, mortgage lenders have previously tested providing energy
reports with their mortgage valuations but consumers totally ignored them. If moved to the end of the process, non-compliance in respect to procuring EPCs
will quickly escalate, consumer engagement will markedly reduce and the opportunity to maximise carbon emission reductions will be gone.
Can't scrap, won't scrap
Whilst the current government seems intent on introducing measures to work towards climate change targets, as demonstrated by recent advice issued by the
Department for Communities and Local Government to all Local Weights and Measures officers about EPC, the Conservatives need to consider their position.
The question is are they truly serious about reducing carbon emissions, or are they paying lip service to the green agenda when it suits them and are in
fact more interested in the politics associated with their populist call to scrap HIPs? Now is the time to move forward by adapting and improving what
already is in place before the opportunity to build on these potential developments is lost.