The Home Condition Report
Home Inspectors and the Home Information Pack

Is The Energy Performance Certificate (EPC) Compulsory?

Yes, the Energy Performance Certificate (EPC) will be a compulsory part of every HIP from the “Go-live” date in June 2007.

In July 2006 the Government has announced plans for the introduction of mandatory Energy Performance Certificates as part of the phased roll-out of Home Information Packs to help consumers cut costs and waste when buying a home and help the environment. As we have long suspected, the energy agenda has been the key driving force behind the government's determination to bring HIPs to the market.

This means that HIPs will be introduced in June next year with searches and energy performance information, enabling buyers and sellers to get A-G ratings on their homes similar to fridge ratings as well as a list of practical measures to cut their fuel bills and carbon emissions at the same time.

The Energy Savings Trust estimates that by following the proposals in the Energy Performance Certificate, the average homeowner will save £300 a year on fuel bills. Government also believes that the information could be used to support the growth of green mortgages and other incentives.

However on the basis of detailed consultations with industry and market and testing information available at the time, the government decided to phase the roll out of other aspects of Home Information Packs, introducing the rest of Home Condition Reports on a market-led basis in the first instance, in order to ensure a smooth implementation with clear benefits for consumers.

Minister for Housing and Planning, Yvette Cooper said: 'HIPs can deliver great benefits for consumers and the environment. But it is important that they are implemented in a sensible way, based on proper testing. That is why we will begin with the most important element - energy efficiency ratings for homes. This will mean practical information for homeowners on how to cut their fuel bills and carbon emissions. People should be backing HIPs to help everyone respond to the global challenge of climate change.'

'We look forward to working with the lending industry, HIP providers and those training to be home inspectors as we develop the next steps.'

The dry run aims to ensure that HIPs deliver the maximum benefits to consumers by looking at costs, the savings from avoiding waste and duplication, consumer attitudes to the Packs, failed transactions and transaction times, and people's willingness to sell with HIPs in place. It will begin with further consumer research and analysis of over 14,000 HIPs produced so far (as at July 2006), in order to inform area based trials later in 2006 which will be independently monitored.