U.K. Minister Supports Low Energy Rated Homes

May 23, 2007 // Published as a news service by IHS

EPCs - A-G energy ratings for homes similar to consumer friendly fridge ratings - will be part of Home Information Packs (HIPs), which will be required for all homes being marketed starting in June.

Housing Minister Yvette Cooper said that she will work with energy suppliers, local authorities and the Energy Savings Trust (EST) to develop new measures to help homeowners implement the recommendations in EPCs.

Ideas under consideration include a "one stop shop" where homeowners, after receiving their energy ratings, could access grants and get quotes at the same time to carry out improvements needed.

Subsidies of between £100 and £300 are typically available from energy suppliers to help fund the costs of insulation, and other energy efficiency improvements.

In addition, some first-time buyers could be eligible for government grants of up to £2,700.

"We want homebuyers with poorly rated homes to be able to get extra support. From 1 June we want homebuyers to have easy access to help so they can make changes recommended in their EPC," Cooper said.

"Average homebuyers purchasing E, F or G rated homes should be able to qualify for £100-£300 support to help with better insulating their homes. Depending on their personal circumstances or the nature of the improvements needed, they may be able to get even more help."

New research shows that consumers want to know more about energy efficiency, with the majority supporting the idea of energy ratings.

According to a You Gov poll:

• More than two thirds of people (72%) want more information about the energy efficiency of the homes they are buying.
• 71% of people think it is a good idea to rate the energy efficiency of homes.
• Nearly half, or 47%, said they would make their home more energy efficient if they had more information on what to do.

The Energy Savings Trust estimated that householders could save around £300 a year if they undertook measures in EPCs. If only one in five homeowners make the basic changes recommended, this could cut carbon emissions by the equivalent of taking 100,000 cars off the road.

A HIP is a set of documents that provides buyers and sellers with information they need to know about a property upfront. Packs will include:

• An Energy Performance Certificate, the first document in the Pack, which will provide a rating on the energy efficiency of the home, plus advice on how to achieve energy savings.
• Searches.
• Other standard legal documents, such as title deeds and a sale statement.
• Leasehold information (where appropriate).
• A voluntary Home Condition Report, which details the condition of the property.

In her speech, Cooper highlighted how HIPs will benefit the consumer by creating greater transparency in the housing market and driving down costs. She also challenged the whole of the industry to put the consumer first.

"The lack of transparency, effective competition and innovation means many consumers can often end up paying more than they should … But already there is evidence that reforms are improving competition. New providers are entering the market and new companies are cutting costs and prices," Cooper said.

Source: U.K. Communities and Local Government.