Setting out the next steps on Energy Performance Certificates (EPCs) and Home Information Packs, Housing Minister Yvette Cooper said she would be meeting mortgage lenders and energy companies to discuss the development of new incentives, such as green mortgages. The Minister also said EPCs could be linked to schemes run by energy companies which give homebuyers cash up-front to make energy saving alterations to their houses.
EPCs, energy ratings for homes, similar to consumer-friendly 'fridge ratings,' will be compulsory as part of Home Information Packs from 1 June 2007. The EPCs will outline the costs of heating, hot water and lighting in homes and give practical advice on how to cut these costs and reduce emissions.
If only one fifth of homeowners made the basic changes set out in their EPC, they would collectively stand to save around £100 million a year on their energy bills, and cut carbon emissions by the equivalent of taking 100,000 cars off the roads.
Yvette Cooper said: "We all need to work together to tackle climate change. Twenty-seven percent of carbon emissions come from homes. Until now householders haven't had energy efficiency facts about their houses up-front, but next June every homebuyer will know exactly how energy efficient their homes are - and how they can improve this. Why shouldn't this information be used by mortgage lenders or energy companies?
"Other countries offer green mortgages which give homebuyers money to meet the costs of making energy saving improvements. In England, sixteen councils have piloted schemes with energy companies where council tax rebates are offered to people who make energy saving changes to their homes. EPCs offer great scope for incentives like these."
The Minister also pledged £4 million of funding to support six area trials for Home Information Packs in Bath, Newcastle, Southampton, Northampton, Huddersfield and Cambridge in November 2006. The trials are taking place in partnership with the Association of Home Information Pack Providers (AHIPP) and aim to help test both the packs and full Home Condition Reports. Sellers will be encouraged to take up voluntary HIPs and there will be independent monitoring to ensure lessons are learnt from firsthand experiences. Regional campaigns will run simultaneously to support the trials, raise awareness and encourage voluntary take up.
