UWS Government Publications Blog

These research findings were published in October 2010.

“A Home Report has been required for almost all residential property coming onto the market in Scotland since 1 December 2008. This study reviews progress in meeting the Home Report’s stated policy objectives during this time; and considers views on the content of the Home Report, its effect on the process of buying and selling a home, and its wider impacts on the housing market.

Main Findings

• Overall, buyers found the Home Report to be helpful. It provides information upfront on property condition, energy efficiency, accessibility and valuation at little or no cost.
• Home Report information is being used to guide decisions on whether to bid for a property and to plan repairs to properties. However, it is too early to determine whether the Home Report will impact positively on the overall condition of Scotland’s housing. It is unclear whether Home Reports have simply provided conscientious home owners with an alternative source of information, or if they have influenced the behaviours of all owners.
• It is too early to determine whether the Home Report has impacted on the housing market. The credit crisis, recession and collapse in the housing market have been major market influences, and it is not possible to isolate any additional impacts from the Home Report.
• The incidence of individuals commissioning multiple surveys on successive properties was already falling prior to the introduction of the Home Report, as buyers started to make their offers “subject to survey” over recent years. However, with the introduction of Home Reports, buyers are now making informed bids – they do not have to wait until after their offer is accepted to obtain information about the property, as this is available in the Home Report.
• Additional reports are sometimes required for a property (funded either by the seller or the buyer) – principally to meet lenders requirements, but sometimes also to provide buyers with additional or specialist information.
• The practice of fixing unrealistically low asking prices has now ended – largely due to the shift to fixed price sales during the recession. Home Reports are likely to consolidate this shift, as all prospective buyers will have access to the property valuation.
• Maintaining confidence in the Home Report is important if these benefits are to be sustained. The study identified a small number of areas where there were perceptions of (possible) inaccuracy. These were principally around the role of the draft Single Survey, where it was felt sellers had the opportunity to influence the report; the use of so-called “beauty parades” where it was felt that sellers had the opportunity to select a high valuation for their home; and inconsistencies between Single Surveys for very similar properties.
• Sellers are not always aware of the options open to them in relation to commissioning Home Reports. In particular, they were not always aware that direct commissioning could be cheaper than commissioning via their agent.
• The vast majority of Home Reports are accessed online and are free of charge. However, some agents are placing restrictions on access, such as requiring a viewing of the property, a note of interest or, in some cases, an appointment with the agency’s financial services adviser.”

The full report is also available.