What is a Home Report?

A Home Report is a pack of documents that give potential buyers information about a property for sale. This was introduced in Scotland on 1st December 2008. All properties that are advertised as for sale in Scotland must have a report prior to going on the market.

The report consists of three components:

1. A Single Survey
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• An assessment of the condition of the home (for example, the roof, internal and external walls, plumbing and kitchen fittings)
• A market valuation

2. An Energy Report

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• The energy report gives the home an energy efficiency rating. The higher the rating, the more energy efficient the home is, and the lower the fuel bills are likely to be. It also looks at the impact the home has on the environment, through carbon dioxide emissions. The report looks at features such as how well insulated the home is, and how it is heated.
• The energy report also recommends ways to improve the home’s energy efficiency and reduce fuel bills.

3. A Property Questionnaire

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The property questionnaire contains additional useful information about the property, for example:

• The property’s council tax band
• Parking arrangements
• Alterations that have been made to the property
• Whether there are any extra costs involved in living there (such as charges for the upkeep of communal areas).

How much does a Home Report cost?

The cost of a Home Report is depending on the value of your property and can range from around £400 up to and exceeding £1000.

How do I get a Home Report?

If you are selling your property using an estate agent or solicitor they should arrange for the Home Report to be carried out on your behalf. The single survey and energy report must be carried out by a qualified surveyor. The seller or their legal representative will be responsible for filling out the property questionnaire.

How long does a Home Report last?

A Home Report lasts for the length of time your property is on the market although if the date on the Home Report is longer than 12 weeks the purchasers’ mortgage lender may ask for an updated Home Report. It would be up to the buyer and seller to decide who will pay for the updated report although the expectation often is that the seller will pay for this

What if the survey finds a problem with my property?

It’s up to you to decide what to do if the surveyor identifies a problem with your home. You don’t have to fix the problem if you can’t afford it or don’t have time. However, bear in mind that the defect may affect the price you get for your home, so ask your estate agent for advice as to whether or not it will be worth putting the problem right.

If you have any further questions on a Home Report please do not hesitate to contact a member of the Blackadders Property Team who will be happy to answer any questions you may have.

Nahdean

Nahdean McLarty
Property Manager
Blackadders LLP
@BlackaddersLLP

www.blackadders.co.uk

 

HIPs: The end of the road?

Now that the new Coalition Government has settled in, I was interested to note that one of the first steps that has been proposed is to repeal the Home Information Packs.  The details are still a bit unclear and it may be that the HIP is being repealed down south with the Energy Performance Certificate being retained.  This proposal is a welcome step and this shows that the Government can change policy and we have to hope that the Scottish Government sees sense and takes steps to repeal the Scottish version.

As a market overview, there has been a recent article in the Daily Express indicating big rises in house prices.  Whilst there is definitely an increase in activity, the numbers of properties changing hands are still well below 2007 levels meaning that there is huge scope for distortion of the figures.  My feeling is that the housing market is moving along the road to recovery and that the fundamentals for the UK house market are still good, that is, stable property market, increasing demands and lack of supply.  Although there is still a problem with bank lending especially to first time buyers.  The housing market still requires to be encouraged by the UK and Scottish Governments and it would be a big benefit if the Sellers’ Survey was abolished in Scotland.