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The NAEA has warned the Chancellor of its fears of a double-dip recession. It has called on the Government to take immediate and decisive action to stave this off.

In a hard-hitting message to Alistair Darling ahead of his Autumn Budget Statement on December 9, the NAEA says: “We call on the Government to take action to stimulate housing sales, as we fear that the current recovery is in danger of stalling, producing a so-called W-shaped recession.”

The NAEA has issued a series of demands.

It wants the Government to suspend HIPs, saying their cost is punishing sellers whilst being of almost no interest to buyers.

It also wants the Government to actively encourage lenders to give high loan-to-value mortgages to first-time buyers.

It asks the Government to consider copying the US, where first-time buyers are being given a tax credit of ,500 worth £4,000. This has given a real boost to their new-homes market.

The NAEA is also calling on the Government to extend the current Stamp Duty holiday and to re-examine the entire Stamp Duty regime with a view to reform.

Its sister organisation ARLA is also urging action. It wants incentives introduced for landlords to improve older housing stock, including the removal of VAT on materials and labour. It also wants the Landlords Energy Saving Allowance to include the installation of central heating.

In their submission to the Chancellor, the NAEA and ARLA say: “There is a continuing threat of a downward spiral in house prices, falling mortgage availability and a longer-lasting depressed market. 

“It is imperative that, now the market is starting to recover, further measures are put in place to ensure that we do not experience a W-shaped recession due to the upturn being unsustainable.

“A key factor will be ensuring access to mortgage finance for buyers looking to enter the market.”

The NAEA says its members are reporting an average of 294 applicants per branch, but that these are translating into only eight or nine sales each month. It says that with lenders wanting deposits of between 25–40%, more and more people are being priced out of home ownership.

Wednesday 18th November 2009

Doubt has been cast on Energy Performance Certificates after its software was rewritten to give improved results.

In one case, says a Domestic Energy Assessor, an EPC carried out on a property in 2007 produced an RdSAP rating of 65 and in Band D.

But a newer EPC carried out on exactly the same unaltered property upped it to an RdSAP rating of 75 and in Band C.

Paul Walker, of the Institute of Energy Assessors (IDEA), said the second rating is more accurate.

But he said it also means that EPCs which are more than a year old are unreliable.

Walker explained that the older software, approved by the Government, meant the use of many inbuilt default values and assumptions.

In September 2008, the software was updated, changing some of the defaults and allowing inspectors to input what was actually there.

A further software update last month means that a set of radiator controls which had previously been given an average score would now achieve a good one. Another update is due in October next year.

Walker points out that the EPC also has a table showing costs of heating and lighting, and savings that could be made by carrying out improvements.

Fuel prices are built into the software and updated every six months. “Again,” says Walker, “this means that an EPC a year or more old is out of date.”

The growing discrepancies mean that two identical properties, side by side, will have different ratings, depending on when the EPCs were done.

It also means that the 'Big Brother' national database of EPCs is, inevitably, inaccurate.

On behalf of IDEA, Walker has now written to shadow housing minister Grant Shapps, challenging him over the Tories’ intention to allow EPCs to be up to ten years old when properties are put up for sale. At the moment an EPC can be no more than three years old.