A home report is a set of documents that gives more information about a property. In this article, we’ll explain what it contains, who needs to provide one, and why it’s necessary.
What goes into a property report?
A home report is made up of three items. There’s the single survey, the property questionnaire, and the Energy Performance Certificate (EPC). These documents together can give a prospective buyer more detailed information about a property so that they can make an informed decision about purchasing.
Single survey
The single survey is the most comprehensive part of the home report. It provides a thorough assessment of the condition of the property. It is carried out by a RICS accredited chartered surveyor who will inspect all aspects of the property and then grade each part of it.
The report identifies any issues or areas needing immediate attention, such as dampness, subsidence, or asbestos. It will also include an overview of the heating system, wiring, plumbing as well as other suspected issues. With some parts of the property the surveyor may suggest carrying out further specific inspections. For example, the electrics may appear to be an older type of installation and only an EICR inspection will ensure that the wiring is safe. The survey also includes a market valuation of the property.
Property questionnaire
This document is completed by the seller. It covers details such as the property’s council tax band, current utility providers, any recent renovations or repairs, parking arrangements, and information about shared access or common areas. It also discloses any disputes with neighbours or ongoing local developments that might impact the property. This transparency can reduce the likelihood of unexpected surprises after purchase.
Energy Performance Certificate (EPC)
The EPC rates the energy efficiency of the property on a scale from A (most efficient) to G (least efficient). It also provides recommendations for improving energy efficiency, such as upgrading insulation or installing renewable energy systems. An energy efficient home not only helps the environment but also reduces running costs, making this aspect of the home report increasingly important to buyers.
Who provides a home report?
In Scotland, it is the responsibility of the seller to provide a home report. This requirement was introduced in December 2008 as part of the Housing (Scotland) Act 2006. Before this change, buyers had to arrange and pay for multiple surveys on the same property, especially in competitive markets. This system was both costly and inefficient. By shifting the responsibility to sellers, the Scottish Government aimed to create a fairer process, where prospective buyers receive a consistent, detailed overview of the property without additional expense.
The seller must commission a chartered surveyor to produce the single survey and EPC, while they complete the property questionnaire themselves. Once the report is ready, it must be made available to potential buyers at no extra charge. However, certain properties, such as new builds or homes intended for demolition, are exempt from requiring a home report.
In England the buyers are still the ones that need to pay for a survey, but they only do this after they have had an offer accepted on the property. There is no legal responsibility for the seller to provide a home report in England.
Why is a home report necessary?
A home report is important as it gives the prospective buyers the necessary information they need to be able to make an informed decision before putting in an offer on a property.
1. Transparency for buyers
By providing a detailed overview of a property’s condition, value, and energy efficiency, a home report ensures that buyers have all the information they need upfront. This reduces the risk of discovering expensive issues after the sale has gone through.
2. Level playing field for sellers
Because every seller must provide a home report, the process is consistent and fair. Buyers can compare properties more easily, knowing that each report has been prepared to the same standards.
3. Efficiency in the property market
The introduction of home reports eliminated the need for multiple surveys on the same property, saving time and money for buyers. This streamlined process benefits everyone involved and makes the property market more efficient.
4. Encouragement of energy efficiency
The inclusion of an EPC in the home report raises awareness about energy efficiency. Sellers are encouraged to make improvements to their properties before listing them, while buyers can consider running costs and potential upgrades when evaluating a purchase.
5. Reduced likelihood of disputes
The property questionnaire, completed by the seller, highlights any issues that might otherwise lead to disagreements after the sale. This transparency fosters smoother transactions and fewer conflicts between buyers and sellers.
Sell your property with FastBuy Properties
No home report, no estate agents. Get a free valuation and an offer to buy.
