The news that the new coalition Government have suspended the HIPS packs for home sellers has bought a little relief to the housing market.
Costing anywhere between £200 to £400, the often criticised packs are being replaced with an Energy Performance Certificate which will show how energy efficient a property is. The cost of these is expected to be around £60.
Every home on the market will require one - within 28 days of being placed on the market (under current EU law).
Whilst the new scheme has been welcomed by those in the business of selling homes, it's not such good news for the thousands of people who trained to be home inspectors. Many inspection firms have already laid off large numbers of staff as homeowners just putting their homes on the market heard of the suspension order and cancelled their HIPS inspections.
It's thought that the task of issuing the energy efficiency certificates could be handed to the power utility companies rather than the dedicated inspection companies of present.
What isn't clear is if this will have any effect on the way energy efficiency certificates are issued for double glazing installations. However, with the emphasis being placed on energy efficiency now, I think we can expect even more attention to be paid to the energy ratings on not just double glazing, but electrical goods and heating systems as well. Not to mention insulation products where they're used in construction of conversions and extensions.
There's every reason to assume that energy efficiency certificates currently issued when double glazing is installed will continue to play a major role for home sellers and buyers alike.
Older properties in particular will be keen to get the best rating possible so owners should certainly be looking at a-rated windows as standard.
And there's more good news for homeowners - whether they're selling their homes or not. Many window companies up and down the UK are running similar offers at the moment, which offer a-rated energy efficient windows at no extra cost. The extra efficiency is usually gained through special glass coatings and inert gas filled cavities between panes.
Previously, some energy and consumer watchdogs have questioned the energy saving between a-rated and the more standard c-rated windows not being consistent with the extra costs of the a-rated designs. However, with such offers now around, this is the perfect time to take full advantage and enquire about a-rated replacement windows for your home.
Click here to see how much you could save on an a-rated energy efficient window installation.
Showing posts with label HIPs. Show all posts
Showing posts with label HIPs. Show all posts
Monday, 21 June 2010
Thursday, 4 October 2007
Reduce the hidden costs of moving house
Moving house? All the information you’ll need to reduce the ‘hidden’ costs of moving and ease the stress
Moving home is reportedly one of the most stressful events in a lifetime, only beaten by divorce and bereavement. Unfortunately, it’s also one of the most expensive, so any advice on how to limit the expense and avoid ‘hidden’ costs is welcome. Here, Mark Cooper, Managing Director of Homeimprovementquotes.co.uk, looks at the costs involved in the run-up to moving and ways to help keep costs to a minimum.
The latest research by social housing pressure group the National Housing Federation claims that house prices will rise to an average of £300,000 by 2012 – an increase of 40 per cent. House prices have already risen by 156 per cent since 1997 but in the last ten years the average income has only increased by 35 per cent.
Getting the funds to afford a house is difficult enough – even for people earning a very respectable wage – because the price of a typical house is around seven times the UK’s average income, according to Government statistics. Fortunately, after five consecutive interest rate rises in 12 months, the Bank of England maintained its interest rate of 5.75 per cent during September. But what about the hidden costs of moving? Britons spend £10 billion a year on ‘hidden’ expenses when moving house, new research from the Cooperative Bank has claimed.
This bill can include all costs except for the actual house price, with solicitor and estate agent fees, stamp duty and removal charges all mounting up, meaning that the average UK household spends £23,800 on these expenses during a lifetime.
So, how can you move house without it costing you a fortune?
There are in fact a number of ways that you can reduce your moving expenses to a minimum.
Don’t pay over the odds – use the internet to research: How did we cope before the internet? By knowing where to look, the web makes it possible to investigate an area you’re considering moving to. You can find out almost anything about a place, from crime and flood risks to what new buildings are in the pipeline, which could potentially devalue your new house. These are free pieces of information that can save you from making a big mistake and losing money on your investment. You can also find out almost anything about properties you are interested in – including houses that have dropped in value or are difficult to sell, how much similar houses have sold for or which council tax band houses have been placed in.
The advantages of New Builds: These properties usually come with a new bathroom, fitted kitchen and are low on maintenance. Many building companies offer deals to first-time buyers. Persimmon, for example, will pay a 5 per cent deposit for you on selected properties and others offer free curtains and carpets.
Getting the right mortgage: Using a mortgage broker to scan the mortgage market can provide you with more influence and protection than an independent bank. Higher lending charges may apply if you borrow more than 90 per cent of the property’s value so by saving up the deposit on a house, interest rates will be significantly reduced. Some mortgage lenders will offer free arrangements or booking fees, but be careful – anything ‘fee-free’ may be priced into a slightly higher rate of interest, making it more expensive in the long run, so consider the options. Also spend your time shopping around for mortgages because, according to BBC News, more than half of all borrowers pay over the odds for their mortgage each month.
Survey: A small number of mortgage lenders will provide a survey free of charge but if yours doesn’t then a basic one will only cost around £250 – compared to a full structural survey which can cost upwards of £600 – so take advantage of this if you’re investing in a relatively new build.
HIPs: Home Information Packs (HIPs) are a set of documents that contain specific details about your property. Initially they applied to four bedroom and above houses, but since September three-bedroom houses have also been included. Many major estate agent chains are offering HIPs as part of their ordinary fees; others are charging in the region of £300 to £350 plus VAT on an upfront or deferred basis – so it’s worth asking the question. All the information you need on HIPs can be found in our earlier article - click here.
Estate Agent: Many estate agents charge upwards of 1.5 per cent of your sale price. Some ‘virtual’ estate agents offer a free service to advertise property over the internet, while others offer a more comprehensive package for a one-off fee of around £200. Some agents may try and encourage customers into giving them their business by offering free HIPs – but, as with the mortgage provider, anything that is branded free of charge will possibly be paid by you elsewhere, so check all the costs.
Stamp Duty: For houses priced £125,000 and under, stamp duty does not apply but for more expensive houses there are three separate thresholds. If your new house is bought for £125,001+ the stamp duty is one per cent of the price, £250,001+ the fee is three per cent and £500,001+ the stamp duty is four per cent. This means that buying a house for £250,000 rather than £250,001 could save you £5,000 in tax! Check on paying separately for fixtures and fittings to see if you can reduce the house sale price and consequently the stamp duty. Alternatively, you may consider taking advantage of the stamp duty exemption scheme implemented in around 2,000 "disadvantaged areas" across the UK – a full list is available at www.inlandrevenue.gov.uk/so/pcode_search
Moving Day: Removal companies can cost anything from £450 upwards. By hiring a van, inviting some friends around, buying in refreshments and doing the hard work yourself you can save over £300 – a decent percentage of your first mortgage payment – plus you can take extra care with those expensive family heir-looms!
Utility Bills: Ask the existing home owners for a utility bill to get an idea of how much a property costs to run. Consider the following
· Get your gas and electricity from the same provider
· Pay your bills by direct debit
· Choose an on-line tariff
· And don’t forget to search the market every year for cheaper providers.
Then of course, remember to sign-up for essential services on your moving day so you can plug in the TV and boil a kettle!
Changing address: You need to tell more than just your friends about your change of address. If you don’t keep up with your TV license or credit card bills then you could be charged for missed payments – so it can prove costly. www.iammoving.com lets you compile a list of all the people and companies who need to be informed about your change of address and they do all the hard work for you. Easy!
…and finally…don’t be afraid to challenge:
Many people are living in, or moving to, incorrectly banded houses. You can now check and challenge your council tax band free of charge, possibly winning a backdated payment from when you moved into the property, as far back as 1993 when the tax started. All you have to do is check your banding against your neighbours’, using the Valuation Office agency's website, and then visit www.nethouseprices.com, a free public service providing access to UK house prices in England, Scotland and Wales, as recorded by the Land Registry since 2000. Web calculators are also available to help you find out what your house was worth in 1991 when council tax bands were allocated. If both these steps show you're in the wrong band then you can challenge it – just be sure of your facts and figures before hand, because bands can also be increased!
For more information please visit www.Homeimprovementquotes.co.uk
Moving home is reportedly one of the most stressful events in a lifetime, only beaten by divorce and bereavement. Unfortunately, it’s also one of the most expensive, so any advice on how to limit the expense and avoid ‘hidden’ costs is welcome. Here, Mark Cooper, Managing Director of Homeimprovementquotes.co.uk, looks at the costs involved in the run-up to moving and ways to help keep costs to a minimum.
The latest research by social housing pressure group the National Housing Federation claims that house prices will rise to an average of £300,000 by 2012 – an increase of 40 per cent. House prices have already risen by 156 per cent since 1997 but in the last ten years the average income has only increased by 35 per cent.
Getting the funds to afford a house is difficult enough – even for people earning a very respectable wage – because the price of a typical house is around seven times the UK’s average income, according to Government statistics. Fortunately, after five consecutive interest rate rises in 12 months, the Bank of England maintained its interest rate of 5.75 per cent during September. But what about the hidden costs of moving? Britons spend £10 billion a year on ‘hidden’ expenses when moving house, new research from the Cooperative Bank has claimed.
This bill can include all costs except for the actual house price, with solicitor and estate agent fees, stamp duty and removal charges all mounting up, meaning that the average UK household spends £23,800 on these expenses during a lifetime.
So, how can you move house without it costing you a fortune?
There are in fact a number of ways that you can reduce your moving expenses to a minimum.
Don’t pay over the odds – use the internet to research: How did we cope before the internet? By knowing where to look, the web makes it possible to investigate an area you’re considering moving to. You can find out almost anything about a place, from crime and flood risks to what new buildings are in the pipeline, which could potentially devalue your new house. These are free pieces of information that can save you from making a big mistake and losing money on your investment. You can also find out almost anything about properties you are interested in – including houses that have dropped in value or are difficult to sell, how much similar houses have sold for or which council tax band houses have been placed in.
The advantages of New Builds: These properties usually come with a new bathroom, fitted kitchen and are low on maintenance. Many building companies offer deals to first-time buyers. Persimmon, for example, will pay a 5 per cent deposit for you on selected properties and others offer free curtains and carpets.
Getting the right mortgage: Using a mortgage broker to scan the mortgage market can provide you with more influence and protection than an independent bank. Higher lending charges may apply if you borrow more than 90 per cent of the property’s value so by saving up the deposit on a house, interest rates will be significantly reduced. Some mortgage lenders will offer free arrangements or booking fees, but be careful – anything ‘fee-free’ may be priced into a slightly higher rate of interest, making it more expensive in the long run, so consider the options. Also spend your time shopping around for mortgages because, according to BBC News, more than half of all borrowers pay over the odds for their mortgage each month.
Survey: A small number of mortgage lenders will provide a survey free of charge but if yours doesn’t then a basic one will only cost around £250 – compared to a full structural survey which can cost upwards of £600 – so take advantage of this if you’re investing in a relatively new build.
HIPs: Home Information Packs (HIPs) are a set of documents that contain specific details about your property. Initially they applied to four bedroom and above houses, but since September three-bedroom houses have also been included. Many major estate agent chains are offering HIPs as part of their ordinary fees; others are charging in the region of £300 to £350 plus VAT on an upfront or deferred basis – so it’s worth asking the question. All the information you need on HIPs can be found in our earlier article - click here.
Estate Agent: Many estate agents charge upwards of 1.5 per cent of your sale price. Some ‘virtual’ estate agents offer a free service to advertise property over the internet, while others offer a more comprehensive package for a one-off fee of around £200. Some agents may try and encourage customers into giving them their business by offering free HIPs – but, as with the mortgage provider, anything that is branded free of charge will possibly be paid by you elsewhere, so check all the costs.
Stamp Duty: For houses priced £125,000 and under, stamp duty does not apply but for more expensive houses there are three separate thresholds. If your new house is bought for £125,001+ the stamp duty is one per cent of the price, £250,001+ the fee is three per cent and £500,001+ the stamp duty is four per cent. This means that buying a house for £250,000 rather than £250,001 could save you £5,000 in tax! Check on paying separately for fixtures and fittings to see if you can reduce the house sale price and consequently the stamp duty. Alternatively, you may consider taking advantage of the stamp duty exemption scheme implemented in around 2,000 "disadvantaged areas" across the UK – a full list is available at www.inlandrevenue.gov.uk/so/pcode_search
Moving Day: Removal companies can cost anything from £450 upwards. By hiring a van, inviting some friends around, buying in refreshments and doing the hard work yourself you can save over £300 – a decent percentage of your first mortgage payment – plus you can take extra care with those expensive family heir-looms!
Utility Bills: Ask the existing home owners for a utility bill to get an idea of how much a property costs to run. Consider the following
· Get your gas and electricity from the same provider
· Pay your bills by direct debit
· Choose an on-line tariff
· And don’t forget to search the market every year for cheaper providers.
Then of course, remember to sign-up for essential services on your moving day so you can plug in the TV and boil a kettle!
Changing address: You need to tell more than just your friends about your change of address. If you don’t keep up with your TV license or credit card bills then you could be charged for missed payments – so it can prove costly. www.iammoving.com lets you compile a list of all the people and companies who need to be informed about your change of address and they do all the hard work for you. Easy!
…and finally…don’t be afraid to challenge:
Many people are living in, or moving to, incorrectly banded houses. You can now check and challenge your council tax band free of charge, possibly winning a backdated payment from when you moved into the property, as far back as 1993 when the tax started. All you have to do is check your banding against your neighbours’, using the Valuation Office agency's website, and then visit www.nethouseprices.com, a free public service providing access to UK house prices in England, Scotland and Wales, as recorded by the Land Registry since 2000. Web calculators are also available to help you find out what your house was worth in 1991 when council tax bands were allocated. If both these steps show you're in the wrong band then you can challenge it – just be sure of your facts and figures before hand, because bands can also be increased!
For more information please visit www.Homeimprovementquotes.co.uk
Tuesday, 3 July 2007
Everything you need to know about HIPs
Selling your house? You will need a HIP
Everything you need to know about HIPs
On 1st August 2007, the government will introduce the Home Information Pack (HIPs) policy in the UK. Although the initial implementation will only affect larger properties – those with four bedrooms or more – HIPs will eventually impact every home-owner in the country, and anyone who is looking to buy or sell property. Mark Cooper, Managing Director of homeimprovementquotes.co.uk, goes through exactly what you need to know about the packs.
Q: What on earth is a HIP?
A: Home Information Packs (HIPs) are a new government policy designed to regulate the process of property transactions. Basically a HIP is a set of documents that contain specific information about your property such as how energy efficient it is, and records of any actions by your local authorities. You will need to have a HIP if you want to sell your property.
Q: Woh, that’s inconvenient – why is the government introducing them?
A: Apparently, the government reckons that £350 million a year is currently lost through house purchases that fall through because buyers discover problems on the property after they have made an offer, and then cancel the deal. The idea of HIPs is to make all the information about the property available before this can happen. HIPS are also supposedly going to stop ‘gazumping’ from happening – when a seller uses the ten-week period it takes for an agreed buyer to get a survey on a property done to accept better offers from other parties, forcing the price up.
Q: Weren’t HIPS in the news recently?
A: You will probably have heard quite a bit about them in the news recently, and the government has got a fair bit of negative publicity over them. This is mainly because the policy was originally intended to come into effect on 1st June 2007, but at the last minute the government delayed the introduction by two months and announced it would be phased so only people with large properties are to be affected initially.
Q: Okay I’m confused already – when does the policy come into force? Will it affect me?
A: HIPs are going to be a legal requirement for anyone selling a property with four or more bedrooms after 1st August 2007. If your property is smaller than this, you don’t have to worry about HIPs just yet – the government has said that the policy will be extended to cover properties of all sizes, but hasn’t announced when this will come into force yet. The HIPs policy does NOT affect Scotland, but the Scottish parliament is planning to introduce a similar policy in the near future.
Q: So what does a HIP contain?
A: A HIP must contain five basic documents:
1. HIP Index – This basically sums up what is in the pack, giving a brief overview of the information in the form of a checklist. Everyone involved in the sale – buyer, seller, estate agent, authorities – can see the status of the pack and its contents.
2. Energy Performance Certificate (EPC) – This is the most important part of the pack from the government’s point of view, and the most expensive to the seller. It contains your property’s environmental impact rating, on a sale of A to G, as well as recommendations on how to increase your energy efficiency. Has to be done by a registered inspector.
3. Sale Statement – Basic information about the site.
4. Title Documents for the Property – Official evidence of who owns the property.
5. Local Authority and Drainage Searches – This includes records of local land charges, planning decisions and proposals from local authorities, and details of the provision of drainage and water services to the property.
There are additional documents to complete depending on whether the property being sold is a leasehold or a commonhold. Each of the documents must be no more than three months old when you first put your property on the market. The HIP will be valid until the property sells, and you can still use it if the property comes off the market and then goes back on again within 12 months.
Q: Sounds complicated – how much am I going to have to fork out for one of these things then?
A: Estimates say £400 minimum
Q: What! How much?
A: £400, and all of it has to be paid for by the property seller – although the cost may end up being transferred to the buyer because people raise the property price to cover the cost. The most costly part of the HIP will be the EPC, which will cost £150 alone and requires an EPC inspector to carry out an assessment on your property.
Q: How do I get a HIP?
A: If you are about to put your property up for sale, there are a number of options available to you. Your estate agent should be able to provide the pack for you for a fee, or alternatively you can use a solicitor or one of a number of specialist pack providers that are around. You can also compile the pack yourself, which could potentially save you some money.
Q: Will HIPs affect my plans to extend my house?
A: No – unless the new room is a bedroom that will take you over the four-bedroom threshold. It’s important to remember that HIPs will measure energy efficiency, and take into account any new rooms you have built when it comes to putting your property on the market. Your HIP will also keep record of all your dealings with the authorities, such as getting planning permission.
For more information, visit homeimprovementquotes.co.uk
Everything you need to know about HIPs
On 1st August 2007, the government will introduce the Home Information Pack (HIPs) policy in the UK. Although the initial implementation will only affect larger properties – those with four bedrooms or more – HIPs will eventually impact every home-owner in the country, and anyone who is looking to buy or sell property. Mark Cooper, Managing Director of homeimprovementquotes.co.uk, goes through exactly what you need to know about the packs.
Q: What on earth is a HIP?
A: Home Information Packs (HIPs) are a new government policy designed to regulate the process of property transactions. Basically a HIP is a set of documents that contain specific information about your property such as how energy efficient it is, and records of any actions by your local authorities. You will need to have a HIP if you want to sell your property.
Q: Woh, that’s inconvenient – why is the government introducing them?
A: Apparently, the government reckons that £350 million a year is currently lost through house purchases that fall through because buyers discover problems on the property after they have made an offer, and then cancel the deal. The idea of HIPs is to make all the information about the property available before this can happen. HIPS are also supposedly going to stop ‘gazumping’ from happening – when a seller uses the ten-week period it takes for an agreed buyer to get a survey on a property done to accept better offers from other parties, forcing the price up.
Q: Weren’t HIPS in the news recently?
A: You will probably have heard quite a bit about them in the news recently, and the government has got a fair bit of negative publicity over them. This is mainly because the policy was originally intended to come into effect on 1st June 2007, but at the last minute the government delayed the introduction by two months and announced it would be phased so only people with large properties are to be affected initially.
Q: Okay I’m confused already – when does the policy come into force? Will it affect me?
A: HIPs are going to be a legal requirement for anyone selling a property with four or more bedrooms after 1st August 2007. If your property is smaller than this, you don’t have to worry about HIPs just yet – the government has said that the policy will be extended to cover properties of all sizes, but hasn’t announced when this will come into force yet. The HIPs policy does NOT affect Scotland, but the Scottish parliament is planning to introduce a similar policy in the near future.
Q: So what does a HIP contain?
A: A HIP must contain five basic documents:
1. HIP Index – This basically sums up what is in the pack, giving a brief overview of the information in the form of a checklist. Everyone involved in the sale – buyer, seller, estate agent, authorities – can see the status of the pack and its contents.
2. Energy Performance Certificate (EPC) – This is the most important part of the pack from the government’s point of view, and the most expensive to the seller. It contains your property’s environmental impact rating, on a sale of A to G, as well as recommendations on how to increase your energy efficiency. Has to be done by a registered inspector.
3. Sale Statement – Basic information about the site.
4. Title Documents for the Property – Official evidence of who owns the property.
5. Local Authority and Drainage Searches – This includes records of local land charges, planning decisions and proposals from local authorities, and details of the provision of drainage and water services to the property.
There are additional documents to complete depending on whether the property being sold is a leasehold or a commonhold. Each of the documents must be no more than three months old when you first put your property on the market. The HIP will be valid until the property sells, and you can still use it if the property comes off the market and then goes back on again within 12 months.
Q: Sounds complicated – how much am I going to have to fork out for one of these things then?
A: Estimates say £400 minimum
Q: What! How much?
A: £400, and all of it has to be paid for by the property seller – although the cost may end up being transferred to the buyer because people raise the property price to cover the cost. The most costly part of the HIP will be the EPC, which will cost £150 alone and requires an EPC inspector to carry out an assessment on your property.
Q: How do I get a HIP?
A: If you are about to put your property up for sale, there are a number of options available to you. Your estate agent should be able to provide the pack for you for a fee, or alternatively you can use a solicitor or one of a number of specialist pack providers that are around. You can also compile the pack yourself, which could potentially save you some money.
Q: Will HIPs affect my plans to extend my house?
A: No – unless the new room is a bedroom that will take you over the four-bedroom threshold. It’s important to remember that HIPs will measure energy efficiency, and take into account any new rooms you have built when it comes to putting your property on the market. Your HIP will also keep record of all your dealings with the authorities, such as getting planning permission.
For more information, visit homeimprovementquotes.co.uk
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