We recently hosted a high-profile roundtable event focused on the critical role of condition reports in the home buying process.
This gathering brought together leaders from across the property, finance, and surveying sectors to discuss strategies for increasing the use of condition reports and ensuring that borrowers are fully informed when purchasing homes.
The discussion opened with an emphasis on the importance of condition reports for homebuyers, as these provide key insights and a thorough assessment into the structural integrity and overall state of a property to help buyers make more informed decisions.
However, despite their importance, the uptake of condition reports remains low, and this is a concerning fact that continues to put many buyers at risk of acquiring properties with hidden defects. This led to an overwhelming consensus that raising awareness was essential in helping to move the home buying process in the right direction.
Current industry conversations
A recurring theme within this was the lack of focus on property conditions in recent industry discussions. While topics like valuations and financing receive significant attention, the physical state of the property can often be overlooked.
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An oversight that can leave buyers unprepared for potential problems.
This was further highlighted by our latest iteration of the Home Survey Trends Index for Q3 2024, which, although noting a significant 5.4% uplift in the number of homebuyers instructing a home condition survey with their recent property purchase, still showed that only 16% of homebuyers were found to have instructed a home condition survey with their property purchase in Q3 2024, compared to 10.6% in Q2 2024.
This figure is inclusive of those who took out a Royal Institution of Chartered Surveyors (RICS) Home Survey Level 2 and RICS Home Survey Level 3 and is applicable for property transactions in England, Wales, and Northern Ireland.
Industry vs government intervention and the introduction of pre-market surveys
Another key topic of debate was whether government intervention is necessary to increase the use of condition reports, or if the industry can drive this change independently.
Some participants argued that regulation could mandate the inclusion of condition reports, while others felt the industry should lead by educating borrowers and promoting the use of surveys.
The concept of pre-market surveys was also explored, with proponents suggesting that conducting surveys before properties are listed could address many issues buyers face. This approach would allow necessary repairs and renovations to be factored into the sale price, giving buyers a clearer picture of the property’s true value.
The discussion also considered the benefits of incorporating open data into the home buying process. By integrating survey data into broader industry discussions, greater transparency could be achieved, encouraging the widespread use of condition reports as part of comprehensive property evaluations.
This meeting of minds demonstrated how greater collaboration across the industry could really support promotion around the value and importance of home condition reports, with participants expressing a strong commitment to continuing these conversations with trade bodies, regulators, and the government.
By advancing these discussions, the goal is to make the home buying process more transparent, secure, and beneficial for consumers. As the industry looks to the future, it’s clear that condition reports must play a central role in protecting the interests of homebuyers across the UK.
