The Chairman’s View. The first IHI AGM took place on 5th July at the National Motorcycle Museum and was well attended by a number of regional members. It was very pleasing to see such a large number turn out for the AGM and voice their opinion and encouraging views about the direction of the IHI. Although our President Tony Gordon was unavailable, he sent a welcome address which was read out at the beginning of the meeting by Steve Rayner. Treasurer Jackie Oliver presented the IHI first year Accounts which were adopted, and a full copy will soon be available on the member's website. A change in Rule 6, period of office and rotation of Councillors was carrier with only two members of the Institute voting against the proposal. The AGM also provided a CPD event on the Commercial EPC presented by Anthony Douglas and Mike Myers, two of the Institute’s Councilors who are close to the latest training and educational issues for the commercial and domestic EPC. Details of the activities of the Institution over the year were reported to members, and there was full opportunity for members to question Council and the Chair about the difficult year we have all faced in this new profession, and what IHI and Council have been doing. Particular thanks were expressed to the Trustees. The fact that IHI is still alive, well, and strong, is a testament to those who have put in some sterling work on behalf of ordinary members over the last year. Unpaid, overworked, and sometimes abused, Jackie Oliver and Steve Rayner where singled out for direct acknowledgement, along with all Regional Councillors. It was reiterated at the AGM that Council members receive no remuneration and pay for their own expenses, including any necessary trips to meet with the CLG and attend IHI Council meetings. It was acknowledged that it was the foresight of the Trustees to establish a professional institution for Home Inspector Surveyors and Energy Assessors that sets the IHI apart from all others. Most notably several other organisations are only trade associations or self-interest panel mangers, and whilst they may have their place, there is a need in a new profession for professional probity, accountability, and the promotion of consumer and professional standards. Many other organisations do not have elected membership representation in their leadership. Which means their future direction is at the whim of individuals and how they may benefit from their ‘members’. The IHI have that accountability. All full members of the IHI have the ability to influence the direction of the Institution. The IHI is an open and democratic professional institution, that aims to improve and develop specialized expert surveying and energy services for its members, and provide an ethical standard of practice and the highest consumer values.

The IHI is not centered upon the financial gain for the few, and is a not-for profit consumer interest company, and this status provides us with special interests and privilege. This does not mean however, IHI Council are not interested in the financial wellbeing of its members, and will do all it can (and is) to direct the CLG in helping the industry succeed.

Significantly the standing of the IHI and its members is now more widely acknowledged by others. By the invitation of the RICS, IHI made a contribution towards the Carsberg Review and Ihave met and attend with the Minister’s Policy Team and EPBD staff on a regular basis. The AGM was also attended by representatives of the Devon & Cornwall Home Inspectors Group.

The Future?
Looking ahead, the road for surveyors and energy assessors remains very difficult. When one considers government department planning, 10 years is a short period, and so what takes place over two, three, or five years has little bearing on their general direction and principle of their aims. The current economic position does not help anyone. House prices in many areas are not a bad as the Daily Mail reader and BBC viewer is told. However the market is operating at very low volumes iin some places, suggesting sales volumes for 2008 may be lower than 600,000. Although house values have decreased in 2007, this is a funding crisis, and that may not be fully corrected for another eighteen months. However, watching prices suggests that we might already be near the bottom of the cycle. The key to it all is funding and increased mortgage approvals.

The IHI stand against the principle aims of the panel management system. There is a place for panel managers, and a need for them in certain parts of the industry. However, for surveyors and energy assessors to be paid less than 40% of what clients pay for their professional services, and for 60% to be left in the pockets of unregulated self interest groups who do little more than diary management, is obtuse and immoral. The empirical evidence of failure in consumer service and professional ethics in the last thirty years is now overwhelming, and this is rooted from the panel management ‘service’. This decline will continue unless there is radical change by professionals and Government, and we already see poor standards from some with EPCs and in HIPs. IHI still call for an OFT or Competition Commission enquiry into the activities of the panel management system within the house buying and selling industry.

There is significant warning that the next twelve months will see a substantial increase in the amount of audit taking place, not just of practicing members, but of Certification Schemes, Training Providers, and others. The CLG have been listening to the IHI, and we know they are aware there are some Accreditation Schemes who are simply not up to the task. These Schemes will find within the next twelve months increased pressure upon them, and some could be removed. Again the IHI stands against the principle of Accreditation Schemes being or being linked to panel managers. Such devalues professional standards in pursuit of profits for the panels, lowers consumer service, raised PI and litigation claims; and essentially is why the industry needed to make a paradigm shift in the first place.
We will see Schemes being pressed to police Regulations and ethical conduct much more vehemently. So the message is; maintain high professional standards and ethics, otherwise those who do not, will be weeded out and struck off the register.

Please also continue to report to your Trading Standards Departments, misleading advertising from anyone, particularly noting Training Providers and HIP providers. We are the ones who need to do this, if we cannot be bothered to stamp out these practices, who will? If you see a misleading advert, or most likely receive an e-mail, copy it to your Trading Standards Department with a short note. Don’t think others will do this, or what is the point? If you don’t do it, who will? It is your job to stamp out bad practice. If standards decline, we may see whole scale changes about who is qualified to undertake a domestic EPC, and then you will wish you did something about it.

We are also soon about to see the removal of the Government websites devoted to HIPs, although we have not been provided a date. Information will be transferred to the Government Direct site, which is a catchall for all subjects.

Commercial EPCs are already with us. The IHI are aware that there are very few Level 3 &4 Energy Assessors currently available.This will change over time, and more will get qualified. Do not be fooled by the ‘get rich quick’ e-mails we have all seen before. The £70,000+ a year incomes. Investigate your training provider rigorously.

Go to your next Regional meeting. Not only is our CPD event diary growing, you will find lively debate about problems colleagues face, from which you may learn, and also you will find news about what is happening at the CLG instead of being taken in by rumor and gossip.

SAOR 12/9/08

An Assessors Tale

After getting my Diploma and several false starts I was prepared for the rush of work heading my way last August. It quickly became apparent that Gary Glitter stood more chance of a job with Montessori than I had of selling an HCR so I moved on to EPCs. I telephoned, wrote and visited all the Solicitors and Estate Agents in my area meeting bemusement and outright hostility from many. It quickly became apparent that to Estate Agents a stand alone EPC was just too much trouble. They wanted a “package” and the LMS or PSG salesman was always one step in front of me. The gelled hair and glossy brochure they produced struck a chord with most agents.

My offer of a local service and a known DEA/HI visiting the property was of little consequence. We are trying to promote a brand was a common response. They all thought they were “Foxtons” although they had only one or two offices.

I was forced to become a reseller of packs but cut throat competition meant that I had to produce my own packs to stay in the race. Feeling alone and unloved I found through the lonely hearts column (OK the forum network) others in the same position. They had arrived at the same stage as me and after an IHI meeting in Leighton Buzzard a group of us met and made the decision to form the Independent Pack Providers Association (IPPA).

I would have liked to have joined an existing Association but the only alternative was AHIPP. Their minimum membership fee (£2400) was a little outside my budget (£12,000 if you wanted to be on their board) and they only seemed to represent volume pack providers.

We quickly attracted members and are soon to have our inaugural AGM. I feel happier in that my HIPs have been audited and I know they are compliant. I also have access to their resource centre and other benefits. This may seem a shameless plug but I would advise anyone doing their own packs to have this “health check”. The audit department are finding many non-compliant HIPs sent in without insurance cover.

IPPA is fighting for First Day Marketing of packs from January 2009 and quality improvements in the HIP, especially searches. This is because the current HIP market has been abused by certain companies sacrificing quality for market share. There are serious concerns over the unregulated search market and the cutting of corners. We have the ridiculous situation of now needing searches done twice in many cases. This is good news to some companies but totally short-sighted and will result in the demise of the HIP, and with it the final nail in the coffin of Condition Reports.

I am now doing Rental EPCs and I get asked if I know anyone who can bring certain properties back to a condition for remarketing. Before becoming a HI this was my business so I appear to have arrived back to where I started my journey.

Commercial Energy Performance Certificates (EPCs) are to be required for buildings under Article 7 of the EU Energy Performance in Buildings Directive [EPBD]. This requires the production of Certificates that will grade performance on a scale from A-G similar to the system used for domestic EPCs. There are two types of Certificates for commercial buildings: Energy Performance Certificates and Display Energy Certificates [DEC].

EPCs will measure the energy performance of the building based on its design. DECs will measure how the building is managed and actually performs. EPCs will have to be renewed every 10 years and shown on points of sale, lease and lease renewal. The purpose is to encourage investment in environmental improvements by building owners and tenants. DECs will be renewed on an annual basis and will only apply to public buildings with a usable floor area greater than 1000m2.
It is hoped that as EPCs will differentiate good from poor performers, a building’s energy performance will therefore be priced. Buildings that cost less to run should attract a higher rental, encouraging the owners to refurbish to a high environmental standard.

TIMESCALE
Commercial buildings will an EPC when built, sold or rented. Since 6th April 2008 this has applied to buildings over 10,000m2; since 1st July 2008 to buildings over 2,500m2.

From 1st October this will apply to all remaining commercial buildings. However the transitional arrangements are that any non-domestic building on the market before 1st October and remaining on the market will need an EPC by 1st January at the latest. If it is sold or rented out in the meantime, an EPC must be commissioned and then handed over as soon as is practicable. This measure is intended to make it easier for owners and landlords to comply with the legislation, avoid market fluctuations and is in response to expectations from the industry.

 

And for those of us old enough to remember the tune to 'I Am The Walrus' - an anthem for today.

I am the Hedgeman I screwed up as you screwed up as he screwed up We’re in this mess together see how they run from a money market fund see how they fly I’m crying Sitting on some futures Waiting for the bounce to come Short duration T-bond, stupid bloody Dick Fuld man You’ve been a naughty boy You let the bank go down I am the hedgeman (woo) We are the hedgemen (woo) I am the Paulson Goo goo gajoob Mr City Banker Sitting pretty little bankers in a row See the TED-spread fly, like Darling in the sky See how they run I’m crying I’m crying, I’m crying

CDO-squared custard Dripping from a dead trader’s eye Cram-a-lotta crap in Pornographic lev’rage Boy, you’ve been a naughty girl You let your risk control down I am the hedgeman (woo) We are the hedgemen (woo) I am the Paulson Goo goo gajoob Sitting in an English building society waiting for that run If the run don’t come you get a loss When they nationalise the English way I am the hedgeman (woo) We are the hedgemen (woo) I am the Paulson Goo goo gajoob

Expert, texpert coked-up brokers Don’t you think the credit analysts laugh at you (hee hee hee, ha ha ha) See the bond guys smile like pigs in a sty See the FT slide I’m crying Securitised pilchard Climbing up to triple A Elementary screw-up, billion pound bail-out Man, you should have seen them shorting Those investment banks I am the hedgeman They are the hedgemen I am the Paulson Goo goo gajoob G’goo goo gajoob Goo goo gajoob G’goo goo gajoob G’goo

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