The Department of Energy and Climate Change (DECC) has announced that it will be closing the Low Carbon Building Programme, to new applicants. Introduced by the labour government, to date the programme has provided over 20,000 grants, with over half going to applicants seeking to install Microgeneration equipment.
Citing government cuts of £6 billion to departmental spending over the next year, as the reason behind the move, The Department of Energy and Climate Change has reassured members that outstanding agreements will be honoured.
Meanwhile, it is hoped that £3 million will be saved by immediately closing the programme to new applicants, with further savings being achieved over the course of the year by cutting or slowing down planned expenditure.
Given the challenging and costly agenda of developing renewable heat and decarbonising the heating sector, the cuts are a serious blow to advocates of green technology.
Thursday, 10 June 2010
Tuesday, 8 June 2010
Useful Online Tools for Home Buyers
Whether you are moving to a new home or looking to buy a second home, choosing the ideal location can be an overwhelming task. Fortunately, with the advent of "media rich" websites, house hunters have a wealth of tools at there disposal to make the job less stressful. This post will cover some of the key tools available for house hunting online.
When starting out it's key to remember that one of the most important factors determining a home's value, is the area it's in. Building a profile of the area, based on social and economical indicators, makes it easier to identify suitable neighbourhoods. Indicators include crime rates, school performance, and the provision of amenities and transport links. Additional aspects to check include school catchment areas and flood planes. For example, even if your offspring are outside of school age, its a no-brainer to check where school catchment areas cover, as they typically push prices up. The following sites help users to gain a perspective of possible areas, using a variety of approaches.
1) The Land Registry
Aside from publishing a monthly average house price index (HPI), The Land Registry (TLR) also issues information on singular sales. Completion figures for all properties sold in England and Wales since January 1995 are available here. Got your eye on a specific property and want to know how much it last sold for, and the extent to which the area's been affected by the recession? The Land Registry has the details!
Alternatively, sites such as nethouseprices.com and ourproperty.co.uk offer a free basic price search function!
2) Oneplace.gov
The Government owned Oneplace site compiles information on crime, education, the environment, health and housing in individual assessments of 152 areas across England. Information gathered by six different inspectorates, is used to rate various indicators for each area on a performance scale of 1 to 4. It's a useful service if you want to compare your current area with surrounding areas or the national average.
3) Environment Agency Information
As mentioned above, it's a good idea to check if an area is vulnerable to any environmental factors. Handily, the Environment Agency provides maps indicating areas at risk of flooding, as well as a number of other maps illustrating local environmental factors such as landfill locations and pollution rates.
4) Google Street View
Arguably the most innovative and indispensable tool available to house hunters is Google's Street View. Offering a 360-degree navigable mosaic, Street View enables you to see a location as if you are there in person. Originally launched in March 2009, as of March 2010 Google Street View covers the majority of the UK from Shetland to Penzance.
5) Housing Portals
Once you've identified a possible area, housing portals such as Newhomesforsale.co.uk are a good next step. Offering details of existing and upcoming properties as well as contact details for developers and estate agents, property portals are now a key resource when house hunting. Some sites now also offer mobile phone applications for searching properties on the go.
The tools mentioned above are not an exhaustive list, but an introduction as to what's available online. Whilst there is no substitute for sampling your chosen area in person, these tools make drawing up a short list all that much easier.
When starting out it's key to remember that one of the most important factors determining a home's value, is the area it's in. Building a profile of the area, based on social and economical indicators, makes it easier to identify suitable neighbourhoods. Indicators include crime rates, school performance, and the provision of amenities and transport links. Additional aspects to check include school catchment areas and flood planes. For example, even if your offspring are outside of school age, its a no-brainer to check where school catchment areas cover, as they typically push prices up. The following sites help users to gain a perspective of possible areas, using a variety of approaches.
1) The Land Registry
Aside from publishing a monthly average house price index (HPI), The Land Registry (TLR) also issues information on singular sales. Completion figures for all properties sold in England and Wales since January 1995 are available here. Got your eye on a specific property and want to know how much it last sold for, and the extent to which the area's been affected by the recession? The Land Registry has the details!
Alternatively, sites such as nethouseprices.com and ourproperty.co.uk offer a free basic price search function!
2) Oneplace.gov
3) Environment Agency Information
As mentioned above, it's a good idea to check if an area is vulnerable to any environmental factors. Handily, the Environment Agency provides maps indicating areas at risk of flooding, as well as a number of other maps illustrating local environmental factors such as landfill locations and pollution rates.
4) Google Street View
5) Housing Portals
The tools mentioned above are not an exhaustive list, but an introduction as to what's available online. Whilst there is no substitute for sampling your chosen area in person, these tools make drawing up a short list all that much easier.
Thursday, 3 June 2010
HIP's demise the leading cause for a surge in instructions?
Update 03/06/10: Following on from the Telegraph articles (see two posts below) purporting to show 30% increases in houses going to market as a result of HIP's being removed, it seemed prudent to examine other factors contributing to the aforementioned increase.
Firstly, Nationwide's chief economist, Martin Gahbauer has suggested one possible reason. He cites that a looming increase in Capital Gains Tax, has urged many to push for a quick sale to avoid any possible additional cost. Supporting his assertion, this article from the Guardian, published one day before HIP's demise, points to estate agents reporting a deluge of inquiries from landlords about the possibility of selling before the CGT rise is introduced. The proposed CGT increase would far outweigh the money saved by not having to produce a HIP, suggesting it may be a more influential factor, than has been widely acknowledged.
Furthermore, The Bank of England yesterday asserted that mortgage lending increased month on month by £0.5bn in April. This is a sizeable increase compared to the March rise of £0.2bn. Increased availability of mortgages, is likely another factor behind the increase in instructions.
Whilst the removal of HIP's may well have encouraged some to enter the housing market, as shown above there were other contributing factors, which arguably were more influential.
Firstly, Nationwide's chief economist, Martin Gahbauer has suggested one possible reason. He cites that a looming increase in Capital Gains Tax, has urged many to push for a quick sale to avoid any possible additional cost. Supporting his assertion, this article from the Guardian, published one day before HIP's demise, points to estate agents reporting a deluge of inquiries from landlords about the possibility of selling before the CGT rise is introduced. The proposed CGT increase would far outweigh the money saved by not having to produce a HIP, suggesting it may be a more influential factor, than has been widely acknowledged.
Furthermore, The Bank of England yesterday asserted that mortgage lending increased month on month by £0.5bn in April. This is a sizeable increase compared to the March rise of £0.2bn. Increased availability of mortgages, is likely another factor behind the increase in instructions.
Whilst the removal of HIP's may well have encouraged some to enter the housing market, as shown above there were other contributing factors, which arguably were more influential.
Disparity in UK house price figures from Nationwide, Halifax and The Land Registry
The guardian has collated figures released by the big three providers of Average House Price Indexes. Presented in an interactive graph, covering from Mar 2006 to the present day, it illustrates the variance in figures released by Halifax/Nationwide/The Land Registry.
The graph is updated with each new release of figures, and is often annotated with feature articles, helping to provide perspective on the numbers. For instance, Nationwide's latest figures suggest that Property market's gradual recovery have pushed prices to within 10% below of those prior to the recession.
The disparity between the figures is due to the differing methods used to compile the indexes. Whilst the Halifax and Nationwide calculate their figures based on properties they have agreed mortgages on, the Land Registry index is instead based on all completed sales for that time period.
The graph is updated with each new release of figures, and is often annotated with feature articles, helping to provide perspective on the numbers. For instance, Nationwide's latest figures suggest that Property market's gradual recovery have pushed prices to within 10% below of those prior to the recession.
The disparity between the figures is due to the differing methods used to compile the indexes. Whilst the Halifax and Nationwide calculate their figures based on properties they have agreed mortgages on, the Land Registry index is instead based on all completed sales for that time period.
Wednesday, 2 June 2010
Post HIP-fallout summary
Thirteen days ago, the Lib-Dem Conservative Coalition culled the HIP industry overnight. Thus far, the response from from estate agents has been overwhelmingly positive, with many citing a surge in the number of houses going to market. However, the ten thousand or so workers directly involved in the HIP industry have been left facing bleak and uncertain futures. Below is a brief selection of articles covering varying viewpoints of the fallout.
HIPs are history, but does that help the housing market?
An insightful article featured by My Introducer. It contends that the initial boost gained from the removal of HIP's may be short-lived, as structural, deep-rooted problems still affect the housing market's recovery.
Housing market benefits from scrapping of Hips
Nine days after the abolishment of HIP's, this article from the Telegraph details Countrywide Estate Agent's claim that they have seen a 34% rise in the number of instructions. Is this increase a post-election pick-up or all down to HIP's demise?
Given that Energy Performance Certificates will remain, many HIP's providers might be considering taking up roles as Domestic Energy Assessors (DEAs). Concerned by the likelihood of increased competition, this article from the Institute of Domestic Energy Assessors urges anyone considering training as a DEA to think again.
HIPs are history, but does that help the housing market?
An insightful article featured by My Introducer. It contends that the initial boost gained from the removal of HIP's may be short-lived, as structural, deep-rooted problems still affect the housing market's recovery.
Housing market benefits from scrapping of Hips
Nine days after the abolishment of HIP's, this article from the Telegraph details Countrywide Estate Agent's claim that they have seen a 34% rise in the number of instructions. Is this increase a post-election pick-up or all down to HIP's demise?
Given that Energy Performance Certificates will remain, many HIP's providers might be considering taking up roles as Domestic Energy Assessors (DEAs). Concerned by the likelihood of increased competition, this article from the Institute of Domestic Energy Assessors urges anyone considering training as a DEA to think again.
Thursday, 20 May 2010
HIP's are History - Long Live EPC's!
The government today announced that it is suspending Home Information Pack's (HIPs) for homes sellers with immediate effect.
Delivered by Labour housing minister Ruth Kelly, in 2007, HIPs were intended to streamline the house selling process, by requiring sellers to provide conveyancing information when properties are first put up for sale. Paid for by sellers, they contain property information, title deeds and local searches.
However, from the off, the packs drew criticism. Some have suggested that they lack vital elements, such as structural surveys. Meanwhile estate agents, and industry figureheads such as Kirstie Allsop, have cited the £100-£400 upfront fee as deterring house sellers from testing the market, and in effect, contributing to the stagnation of the housing market. Seemingly, many are painting HIPs as a scapegoat for the market's woes. Whether their claims are verifiable, remains to be seen, especially given number of factors contributing to the volatility of the housing market over the last three yeas.
Whilst today's news has been warmly received in some quarters of the housing industry, many in the HIP industry feel that little thought has been given to their livelihoods and clients.
The move was not unexpected, as both the Lib Dems and Conservatives have made no secret of their opposition to HIPs. However, what has surprised many in the HIP industry, is the speed with which the suspension will come into affect. Homes Minister Grant Shapps, had previously promised a 100 day consultation period to decide the future of HIPs. This would have given the HIP industry time to wind down or adjust the focus of their operations.
The eradication of HIPs, could see the first major job loses under the new coalition government. The Association of Home Information Pack Providers (AHIPP) suggests that between 3,000 and 10,000 livelihoods are either directly or indirectly dependent on HIPs.
Paul Sailes of HIP-Consulant.co.uk, has contributed an industry insider's view of today's announcement:
The future for HIP providers?
One element of HIPs, the Energy Performance Certificates (EPCs) will remain. EPCs grade a home's energy efficiency on a scale of A-G ratings. Costing considerably less than HIPs, at around £60, the seller will be required to supply one within 28 days of putting the house on the market. Sources have suggested that EPC's will remain valid for up to 10 years. However, questions have already been raised about the quality and scope of EPC's. Whether EPCs can absorb the fallout from the HIP industry remains to be seen. What is certain is that the original need for a full report, which would produce a fairer market, free from gazumping and gazundering remains.
Update: 21/05/10 Today Countrywide has announced that it is to reimburses clients for HIPs. Could this be another thorn in HIP provider's sides, as clients call for refunds for an effectively defunct product?
“Mr Pickles today laid an Order suspending HIPs with immediate effect, pending primary legislation for a permanent abolition. The Secretary of State has taken this swift action in order to avoid uncertainty and prevent a slump in an already fragile housing market. Today’s announcement sends a clear message of encouragement to people thinking of selling their home that they can put it on the market with less cost and hassle.” Source: Communities.gov.uk
Delivered by Labour housing minister Ruth Kelly, in 2007, HIPs were intended to streamline the house selling process, by requiring sellers to provide conveyancing information when properties are first put up for sale. Paid for by sellers, they contain property information, title deeds and local searches.
However, from the off, the packs drew criticism. Some have suggested that they lack vital elements, such as structural surveys. Meanwhile estate agents, and industry figureheads such as Kirstie Allsop, have cited the £100-£400 upfront fee as deterring house sellers from testing the market, and in effect, contributing to the stagnation of the housing market. Seemingly, many are painting HIPs as a scapegoat for the market's woes. Whether their claims are verifiable, remains to be seen, especially given number of factors contributing to the volatility of the housing market over the last three yeas.
Whilst today's news has been warmly received in some quarters of the housing industry, many in the HIP industry feel that little thought has been given to their livelihoods and clients.
The move was not unexpected, as both the Lib Dems and Conservatives have made no secret of their opposition to HIPs. However, what has surprised many in the HIP industry, is the speed with which the suspension will come into affect. Homes Minister Grant Shapps, had previously promised a 100 day consultation period to decide the future of HIPs. This would have given the HIP industry time to wind down or adjust the focus of their operations.
The eradication of HIPs, could see the first major job loses under the new coalition government. The Association of Home Information Pack Providers (AHIPP) suggests that between 3,000 and 10,000 livelihoods are either directly or indirectly dependent on HIPs.
Paul Sailes of HIP-Consulant.co.uk, has contributed an industry insider's view of today's announcement:
It is sad day for both HIP providers and the home buying and selling process. The HIP gave a great vehicle to deliver upfront information about the property marketed for sale. Of course, it had areas which could have been improved, what doesn’t. It would not have been hard to amend if the various parties shared the desire to do so. It is a sad reflection on our property market that various groups facilitated targeted campaigns aimed at the HIPs demise rather than utilising their efforts to help improve the HIP and reform our antiquated home buying and selling process.
Unfortunately, I believe the Home Information Pack will go down in history as a failure due to actions of those with vested interests; that also includes those who were consistently pro-HIPs. The home buying and selling process requires reform and still does, never more so than yesterday if it is intended we revert back to pre-HIP days. HIPs were a good first step towards the ultimate goal of successful reform. I see no winners from the actions taken by the government today and it worth sparing a thought for those businesses, jobs and families who will be directly affected due to no fault of their own and will undoubtedly suffer.
The future for HIP providers?
One element of HIPs, the Energy Performance Certificates (EPCs) will remain. EPCs grade a home's energy efficiency on a scale of A-G ratings. Costing considerably less than HIPs, at around £60, the seller will be required to supply one within 28 days of putting the house on the market. Sources have suggested that EPC's will remain valid for up to 10 years. However, questions have already been raised about the quality and scope of EPC's. Whether EPCs can absorb the fallout from the HIP industry remains to be seen. What is certain is that the original need for a full report, which would produce a fairer market, free from gazumping and gazundering remains.
Update: 21/05/10 Today Countrywide has announced that it is to reimburses clients for HIPs. Could this be another thorn in HIP provider's sides, as clients call for refunds for an effectively defunct product?
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