Home Information Pack Regulations 2006


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Michael Gove: The hon. Lady may be about to come to this point, in which case I ask her to forgive me for my presumption. Can she enlighten us on how long it will take to conduct an energy performance certificate inspection of a standard home, assuming that that was all that one did and that one was not doing any other part of the survey? How long would it take? What qualifications or expertise would be necessary to perform that process?
Yvette Cooper: This is one of the times when I wish my hon. Friend the Member for Crosby was here. I am sure that she could tell us in great detail, as she has carried out all sections of the course. I do not think that I can credibly give—
Michael Gove: I will intervene again, because I am genuinely not trying to catch the Minister out—heaven forbid—but simply trying to elucidate some information. Obviously, people want to know what precisely is involved, especially those who are thinking of training to become inspectors, those who are in training at the moment and those who might have to cope with the regime outlined by the Minister. People would like to know how long the process will take, the degree of skill that is required to discharge the process and what is involved. Will someone be able to look around a house, ascertain whether the loft is lagged, whether windows are double glazed and whether it is new-build or an antique or character property, and use a ready-reckoning formula to issue the certificate, or will the process be much more intrusive? Will it involve looking in wall cavities, for example? A broad outline at this stage and more detail on another occasion would certainly be helpful.
Yvette Cooper: I am certainly very happy to provide the hon. Gentleman with more detailed information in the future. The energy performance certificates are clearly a component part of the HCR. Clearly, a lot of additional information in the HCR is not included in the energy performance certificate and thereforesome things would not need to be assessed in a house simply to complete an energy performance certificate. Nevertheless, we are keen to ensure that we have clear incentives for people to combine energy performance certificates with the wider HCR. There will be knock-on benefits to consumers as a result.
Mr. Hands: It sounds to me to be a helpful development that the certificates will need to be renewed every 10 years. Can the Minister explain what will happen if there is a significant change to the property during those 10 years? Who will determine whether the energy performance certificate needs to be updated and will the seller more or less then have to seek an update even if the change has been relatively small, regardless of things such as wind turbines and solar panels? Even if a small change has been made, such as a rear loft extension, who will determine whether a new certificate is needed?
Yvette Cooper: Our regulations make it clear that a new certificate is needed for a new sale. It would be possible to comply with the EU directive—this option would be available to other countries if they chose it—simply by ensuring that an energy performance certificate awarded in the previous 10 years was available at the point of sale or during the making of an offer. We are going further than that by stating not that the energy performance certificate must have been completed within the past 10 years, but that it must be new for the sale in question. A certificate completed for a previous sale could not therefore be used.
If a person had bought their home three years ago and still had their energy performance certificate in the back of a cupboard, under the EU directive they would be able to pull it out and use it again for the next sale. Considering that all kind of things could have happened in that home in the meantime, as the hon. Gentleman said, the buyer needs up-to-date information on the current energy efficiency situation and carbon emission level in the home. That provision is a valuable addition to the requirements in the EU directive. We are going further than the requirements of the directive, which is the right thing to do.
Andrew Stunell: I shall come to the Minister’s aid. We have the worst level and standard of energy efficiency and conservation in our housing stock of any EU nation, so it is surely overdue that we should be making the requirement in question.
Yvette Cooper: The hon. Gentleman is right. I know that he has long taken a strong interest in the need to make such information available.
I shall respond to some of the points made in the debate. The hon. Member for Surrey Heath asked for information about the HCR database and whether there is interest in operating it. I can tell him that, yes, more than one contractor is interested and there are also people interested in the certification schemes. Further discussions are going on.
On access to the database, we have made it clear in a series of written answers—I am happy to put this on the record again—that such bodies as the Valuation Office Agency or Her Majesty’s Revenue and Customs will not have access to the database. There have been scare stories despite our having put that point on parliamentary record on many occasions.
Hon. Members asked questions about home inspectors, a role that we take seriously. We recognise the uncertainty created for people who are undergoing training, which is one of the main issues being discussed with stakeholders. We need to be clear that we strongly believe that HIPs should be introduced with the energy performance certificates, the completion of which will need qualified experts from next June, and that HCRs need to be rolled out. Home inspectors will need to be in place to conduct those reports, award the certificates and be part of the trials and the dry run. We are considering further how to ensure that proper information is available for people who are either beginning or completing home inspection courses or considering taking them up. They should have up-to-date information; many matters are being discussed and developed, and we are examining how we can ensure that that is the case.
We take such matters into account when considering the risks of a big bang implementation next year. Our concern is that, although there are many months left to train home inspectors, there are risks to consumers if not enough are in place, not simply because of delays, but because of the impact on the price of HCRs. We have examined the matter in detail when considering whether there are alternative ways in which to phase the roll-out and to promote take-up.
Andrew Stunell: I thank the Minister for that. Presumably she has the monthly reports that are referred to in the regulatory impact assessment, so will she give us a snapshot of how things are? I take her point on the need for energy efficiency inspections. Judging by the information with which she has provided us, it seems that those inspections are projected to attract a fee of about one third of that for a full pack, which suggests that only one third of the number of inspectors would be employed and paid for from that money. Will she comment on that figure?
Yvette Cooper: Let me first give the hon. Gentleman the facts that he requests. The latest figures suggest that more than 4,500 people have signed up for training and assessment and that some 235 people have completed their training and have qualified as home inspectors. We are currently exploring with stakeholders the time for completing an energy performance certificate compared to the time for completing a full HCR, and the relative costs of the two.
As the hon. Gentleman will be aware, however, we have always said that costs and prices will ultimately be set by the market. In the regulatory impact assessment, we used figures that were available in the market for the current provision of comparable surveys. With the introduction of HIPs, and with greater transparency and competition, one would expect prices to be driven down. So it is difficult to predict precise costs at this stage—it is a matter for the market and we are discussing it further.
We shall provide further information in due course about the dry run and about next steps for energy performance certificates and regulations. We believe that it is important to continue with the work on regulations, because they set the framework for large parts of the work that is under way. We shall return to the House with revised regulations and a revised regulatory impact assessment in due course.
Question put:—
The Committee divided: Ayes 8, Noes 5.
Division No. 1]
AYES
Cooper, Yvette
Griffith, Nia
McCarthy, Kerry
Pound, Stephen
Shaw, Jonathan
Smith, Ms Angela C. (Sheffield, Hillsborough)
Spellar, rh Mr. John
Stuart, Ms Gisela
NOES
Duddridge, James
Gove, Michael
Hands, Mr. Greg
Jackson, Mr. Stewart
Stunell, Andrew
Question accordingly agreed to.
Resolved,
That the Committee has considered the Home Information Pack Regulations 2006 (S.I. 2006, No. 1503).
Committee rose at twenty minutes to Four o’clock.
 
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Prepared 21 July 2006