Issue 4
Contents
Through the grapevine
Rumours abound that Govt is set to announce a massive energy efficiency drive on all domestic properties full story...
New energy assessor qualifications
Looking at the all new Housing Energy Assessor and Community Energy Assessor roles. Asset Skills has published the dratft NOS and is now seeking your input full story...
Fees
The topic of fees has surfaced once again lately on the HIF. We hear from one DEA who passionately believes that low fees means low service levels full story...
Welcome back!
Whilst it's custom to chant happy new year, we felt it more appropriate to wish you bloody good luck for 2009 instead - we'll all need it!
Missing stats
Because of the Christmas break there was no January issue, but that doesn't mean we're going to forget December's HIF Work Instructions Index, oh no.
Total instructions: 19
Value: £1010
Average fee: £53.16
One would expect December to be a quiet month (19 instructions compared to 27 in November) however, the index was somewhat skewed by one member posting four jobs without fees, and another who placed 76 flats, again, with no indication of fees. We have not included those instructions.
Average fees for December fell 1.69% compared to November (£54.07).
January numbers were more healthy (see right panel) although, again, two instructions omitted fees.
On the plus side, though, average fee levels shot up 6.24% to £56.48 compared to December, helped, no doubt, by Deano, who bowled a thumping £115 instruction for a single EPC.
We would remind members that the Work Instructions forum is not an "auction" service - fees must be quoted in accordance with the terms of use.
Rightmove: High demand v low supply
The Rightmove monthly house price index - which claims around 90% of property listings - in January revealed new property listings on its website had plummeted from 89,110 for the same month last year, to 43,416.
Reflecting the dire state of the construction industry, the report also noted 1,000 fewer new-build developments marketed.
Whilst the report's preamble points to restrictive lending criteria and lack of market confidence as factors for the decline, it also warns that 'the additional cost of mandatory Home Information Packs (HIPs) may persuade further homeowners not to market their property.'
It also cautions that the 'number of new sellers may face a further decline when new regulations are introduced on April 6th', when a HIP must be in place before marketing commences.
However, not to be too downbeat, there was a surge of new buyer interest over the new year period: the website recorded 429,560 email enquiries versus 199,762 for the same period last year.
Listings for rental property also soared 37%.
Through the grapevine
We received a curious email from a trusted source last week who believes the Government is about to announce something "big". The source claims the rumours revolve around two possible initiatives (paraphrasing):
- A large public spending program focusing on energy efficiency, and/or;
- Government-funded energy assessments on all - or some - domestic properties.
Whilst we ruminated on whether to include this morsel, yesterday, Building.co.uk ran a report titled, 'Government to reveal green makeover for 7m homes'. The article claims that the Department for Energy and Climate Change (DECC) will unveil proposals on Thursday (12th Feb) to reduce carbon emissions and increase the fuel efficiency of "more than a quarter of homes", in a massive retrofit exercise.
'DECC is expected to compare the refit to the 10-year process of fitting UK homes with gas central heating in the 1960s and 1970s', the article reports.
It is also believed that the department will introduce "measures to encourage households to install renewable energy systems such as solar photovoltaics and biomass."
Hang on to those diplomas people - your country may need you afterall!
The all-new Community & Housing Energy Adviser qualifications
Asset Skills - on behalf of the CLG - last week launched a consultation on its draft NOS for two new qualifications aimed specifically at Domestic Energy Assessors.
From the introductory notes:
"The NOS are divided into two distinct parts. They form the basis of two separate qualifications to become either a Housing Energy Adviser (HEA) or a Community Energy Adviser (CEA). Units 1–5 of the NOS cover the skills and competencies needed to become a HEA. Suitably qualified HEAs can train to become a CEA. The skills and competencies needed for this more advanced role are covered in Units 6 and 7 of the NOS."
Barrier to entry
Unlike the DipDEA, there is a barrier to entry to the new qualifications insofar as candidates must already be a Domestic Energy Assessor, although it is conceded there is currently nothing to prevent training providers offering an "all-in-one" package to new entrants.
Housing Energy Assessors
The role of the HEA is designed to be more specific to the household, taking account of, and advising on, patterns of energy use, lifestyle/behaviours, sustainability and funding opportunities.
The aim is to build a "comprehensive picture of household energy use" including fuel bills, energy tariffs, appliances, electrical equipment, and even extending to water, drainage and waste.
The role is clearly more in-depth but it doesn't stop there: Element 5.1 requires HEAs to 'Monitor the implementation of recommendations and provide follow-up services', which may include:
- (i) further information and advice
- (ii) encouragement and support
- (iii) action planning
- (iv) recommending goods, services and/or suppliers
Compromising impartiality
The eagle-eyed amongst you will have noticed the last item in the list above - (iv) recommending goods, services and/or suppliers - and you wouldn't be alone.
It portends to Element 4.1, paragraph 11, which states that HEAs must:
'inform the client about any referral fees or other benefits that you may receive should they follow your recommendations for goods, services and/or suppliers'
The scope of this element, in particular, has already triggered questions of concern on the consultation forum. Some have likened it to the role of financial consultants; others fear "it is an invitation to corrupt", further arguing that "the advisor becomes a salesman".
Community Energy Adviser
The final two units of the NOS (Elements 6-7) are optional for 'Housing Energy Advisers wishing to train as Community Energy Advisers (CEAs).'
In this role, CEAs will work with "community groups" such as Housing Associations, Tenancy groups, Transition Towns, Church groups, or even street residents working together etc.
The role will comprise identifying "opportunities to support community action, research community projects and initiatives, and facilitate the development of networks and partnerships", as well as funding opportunities.
CEAs will also investigate the feasibility of renewable technologies on a community-wide scale such as biofuels, wind turbines and photovoltaics.
The qualification aims to equip CEAs with the tools necessary to identify possible opportunities or constraints inherent with different technologies; for instance, grid connection, planning and financial support.
The NOS is also upfront in stating:
'Although the advice provided to clients must be objective and impartial, it is possible that you will receive referral fees or other benefits from certain suppliers should the client use their services; it is vital, therefore, that any such interest is fully disclosed to the client.'
Clearly, the CEA is an involved and ambitious role with a commensurately higher responsibility to the people involved in the communities served. The financial rewards may also be higher but some DEAs on the HIF forum fear the role will be monopolised by the energy utilities.
Call it coincidence but...
Now, call it coincidence, speculation or by design, in light of the previous news item, above, we wonder if there might be a connection to the timing of these new qualifications.
One accreditation scheme understands the two new roles - and possibly the existing role of DEA - may serve to act as "gateways" to grants - effectively "rubber-stamping" approval for works deemed necessary. So maybe the expected announcement on Thursday from DECC is tied into this?
Whether there's a link or not, you are urged to contribute your thoughts on the draft NOS before 27th February 2009 via the online forum Asset Skills have setup.
Download: Draft HEA and CEA NOS.
Contribute to the consultation: Asset Skills forum.
Regular forumites will remember the debate that ensued after the CLG declared EPCs valid for three years on domestic properties (ten years for rentals) last year. Here's your chance to make sure you have your say - don't miss out!
Matching service to fees
A DEA (wishing to remain anonymous) argues why low fees could have compromised service-levels by citing three personal experiences which might otherwise have been unviable were it not for his £100 fee.
I do not work for panels as I believe the fees are unrealistic. Three EPCs I did this week will, I hope, support my stance. I do respect those that do a good job at panel rates but I would prefer to own the goodwill I generate.
A straightforward 2 bed flat as part of a HIP
This instruction came through the back door of a major chain tied to a National Supplier. They use me when a vendor baulks at a £400 pack and might go elsewhere.
I arranged to collect the cheque at assessment time from the elderly gentleman who rang me. This changed when his daughter contacted me to say she would pay me directly as she was the owner but lived elsewhere.
Before payment I got a call from an excited Estate Agent who had a buyer lined up. Imagine my surprise when I discovered it was a totally different branch to the original one. I decided to send the EPC and acknowledgement of order to expedite the deal. The cheque arrived the following day.
The daughter took charge because her father is terminally ill and so she was shielding him from stress. I have helped three parties and have a potential new Estate Agency on board.
Six bedroom property
A Solicitor gives me an EPC order. It is a 15 mile drive in the country. The property has 6 bedrooms which was doubled in size with an extension. The original property dates back to 1900 but there was no evidence to support the age of the extension.
A vague “about 20 years old with walls made of thermolite blocks” is probably accurate but the owner advises, “the solicitor has the details”.
To give the vendor the benefit of accurate dating (and to protect myself), I asked the Solicitor for details.
Imagine doing this on a panel price which are usually the same whether a mansion or a studio.
Urgent EPC
A fellow member of IHI offers me an EPC in Central London that is urgent. I agree to take it on. It is a flat and a ladder is not required. I use a travel card and do it on a Saturday morning at 9a.m. as this is the only time the vendor can make. The flat is a change of use from offices to residential and is about 4 years old. I warn the client that it will have a poor rating as space heating is by electric panel heaters. I patiently wait while supporting building regulation and planning information is found to reflect the higher ratings that will apply now to the original 1900 building.
I suppose my point is that because these jobs are sensibly priced I can afford to take time and not cut corners. You could also say that many properties are the proverbial “shoe boxes” and these are exceptions. This has not been my experience.
Forum talk
Pricing up a job
I know there are countless threads on here about how prices are too low. But we all know there are DEAs out there doing jobs at low fees.
Why do they do it? Because they think they are making some money.
I thought it might be helpful to set out a few figures starting from the bottom (rather than the approach used usually here where people start from the top and deduct the expenses).
I'll make one major assumption in my calculation: the DEA has paid for his training and, for the purpose of this calculation, it is water-under-the-bridge, i.e. written off.
Another assumption - not valid in my case 
- is to ignore any financing costs (bank interest) on the training and equipment purchased to do the job.
On average, I reckon the average time taken to produce an EPC is around 1.5 hours. That includes the site visit, entering data into RdSAP and doing your QA filing etc. Onto that you probably need to add about 15 mins to cover general administration including invoicing etc. Of course, that 15 mins is shared across several jobs making a two-hour session in which you do invoicing, go to the bank to pay-in cheques etc.
So two hours in all per EPC.
As a self-employed person, there are quite a few overheads you need to add on to your wages. So even if you want to earn the equivalent of the national minimum wage you are going to need to earn around £9 per hour. That is for someone working full-time. If you are working part-time (as 90% are), then fixed overheads are spread over fewer jobs. So, if we take an industry average, to earn the minimum wage you are going to need to earn about £12 per hour.
So that gives us a basic cost of £24 to do an EPC.
We then need to add on approx £7.50 lodgment fees and about £1.00 in sundries such as stationery, batteries for the Disto etc...
Harder to price up, but you probably need to count the best part of £1.00 for depreciation of various equipment you use to produce the EPC (camera, computer, printer, etc) which you will need to replace at some point.
That takes us to £33.50. But only if we are doing an EPC on our next-door neighbours house.
As soon as we travel to do an EPC, the costs rocket rapidly. It is commonplace for a DEA to travel 10 miles to an appointment. That will be £12 (20 miles @ 60p) in vehicle costs (quite a modest economical vehicle) and another £12 - see above - for the hour taken on travel. That takes the cost of the EPC to £57.50.
There are other things that I should be adding into this: Bank charges, telephone, and even, potentially, the cost of premises - even if you work from your back-bedroom, you will have additional heating and lighting costs.
So really the bare minimum average price for an dwellings EPC is £60. That is just to earn the equivalent of the National Minimum Wage (£12500 per annum). Anyone who is doing panel work at £35 is losing £25 on every job.
It's often said that some DEAs have to accept panel work "to put food on the table". That is plain wrong. They could afford far more food being unemployed and claiming benefits.
To earn even a decent wage (national average £25000 per annum full-time), the costs would rise such that the minimum price for an EPC would be about £84.
Just for fun, let's consider what the price would be if we were to believe the training providers who reckoned that energy assessors would earn £50k per annum. I make it about £108.
I don't mean to sound unsympathetic. But it is just a kindness to point out these simple truths to people so that they do not continue to plough themselves further into the financial mire.
Forum thread: Pricing up a job.
Northgate launch DEC accreditation
Northgate launched its accreditation scheme for DEC assessors on 7th January 2009 for England, Wales and Northern Ireland.
More: Northgate DEC accreditation scheme
Stroma extend free accreditation offer
Stroma Accreditation has extended its free accreditation offer for CLG-approved commercial energy assessors (levels 3, 4 and 5) and public building schemes until 31st March 2009.
Details: Stroma accreditation offer
Quidos telephone number change
Effective 1st Feburary 2009, Quidos head office can be contacted on its new telephone number: 01225 318 400.
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Scotland's 7-day penalty charge reprieve
Scotland's parliament has amended regulations to allow building owners seven days to procure an EPC without attracting a Penalty Charge Notice. The temporary amendment came into force on 31st December 2008 and will remain in force until 31st March 2009.
The seven day exemption applies from the date information is requested, the building is viewed, or an offer is made to buy or lease the building.
The Energy Performance of Buildings (Scotland) Amendment Regulations 2008
Executive note
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ECMK roadshows for DEAs (includes CPD)
ECMK has begun a national roadshow for DEAs which includes 1.5 hours of CPD. The next scheduled event is in Northern Ireland on 10th March 2009.
Other dates include Birmingham (21 Apr), Newcastle (20 May), Cambridge (16 Jun) and Swindon (14 Jul).
More details: DEA roadshows and CPD training.
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Hugh Dunsmore-Hardy joins IPPA
Hugh Dunsmore-Hardy, former chief executive of the NAEA and chairman of the National Association of Registered Home Inspectors, has been appointed to the executive board of IPPA.
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