Consultation on the Home Report - Analysis of Responses

4 The Content & Usefulness of the Home Report Documents

4.1 There are three documents within the Home Report - the Single Survey, the Energy Report and the Property Questionnaire. Section 3 of the consultation sought views on the appropriateness and usefulness of each of these components.

Single Survey

4.2 The Single Survey is broadly equivalent to the "Scheme 2 Homebuyers Survey" which was a standard product provided by surveyors before the Home Report was introduced. The extent of the survey and level of inspection are, therefore, similar to those which would have been applied prior to the introduction of the Home Report legislation.

Question 18: Does the single survey element of the Home Report provide an appropriate and useful level of information? If not, please explain why and what information should be removed and/or added.

4.3 Question 18 asked respondents if the Single Survey provides an appropriate and useful level of information. The balance of opinion on this issue is set out in Table 18 below.

Table 18: Question 18 - Response by Respondent Type

Respondent Type	Yes	No	Mixed	N/A	Total
Chartered Surveyors	7	2	-	-	9
Construction Industry	-	-	-	3	3
Consumer, Advice & Campaign Groups	2	1	-	2	5
Legal Profession and Estate Agencies	2	5	-	1	8
Local Authorities, including Trading Standards	3	3	-	1	7
Property Management, Maintenance and Conservation	3	3	-	1	7
Other	-	4	1	3	8
Individuals	63	19	1	14	97
TOTAL	80	37	2	25	144
Percentage	56%	26%	1%	17%	100%
Percentage of those responding	67%	31%	2%	-	100%

4.4 The majority of respondents (67% or 80 of the 119 respondents who answered this question), thought the Single Survey provides a useful and appropriate level of information. However, the majority of Legal Profession and Estate Agent and Other Respondents did not.

4.5 Many of the further comments made focused on two not unconnected themes - the frequent use of caveats and the need for more detailed information on property condition.

4.6 With regard to the use of caveats, a number of respondents, including a number of Individual Respondents, suggested that their extensive use renders some Single Surveys almost meaningless. A number of respondents were also looking for provision of more thorough or detailed information on the condition of the property, the precise nature of faults and the extent of the repairs which may be necessary. It was also suggested that the Survey should include an estimation of the life expectancy of key components with an anticipated replacement year.

4.7 Specific areas about which respondents suggested additional information should be required included:

• The roof/roof space.
• The condition of common property elements if the property is part of a tenement, terraced or semi-detached building.

4.8 On the specific issue of the accessibility audit, one Campaign Group Respondent suggested that although many of their members thought it provided appropriate and useful information, they also had some suggested changes. These included providing information on designated disabled parking spaces and the wheelchair accessibility of the property and of the bathroom in particular. Another Campaign Group suggested there should be a focus on information which can be utilised to the potential benefit of home buyers. They called for the access criteria within the Single Survey to be incorporated into property search engines.

4.9 Other suggested changes to the Single Survey also generally focused on other elements that could be included, with the following proposed for inclusion:

• A generic MVR (rather than the Single Survey valuation which is the current legal requirement).
• A rental valuation figure.
• More prominent information on the financial value of the energy performance of the property, including income from small-scale renewables. An associated suggestion was that solar, cashback and Renewable Heat Incentives calculator tools could assist surveyors in providing this information.
• Details of any property factoring charges, including what those charges cover. Also if there is any Block Building Insurance to be paid.
• Information on the exact nature of any alterations that have been carried out to the property.
• Details of the location, treatment provided and responsibilities in relation to private water supplies. Also the condition of the distribution system to any private supply.
• Information on all integrated appliances, the central heating system and the boiler should be included. This should include their age and any appropriate certificates.
• An explanation of some of the key terminology being used, including guidance regarding the repair category scales.
• An Easy Read or Executive Summary of the main areas for buyers to consider.

4.10 Finally, while most respondents who suggested changes were looking for more information to be included, a small number did focus on the need for brevity and for the Single Survey to be as concise as possible. It was also suggested that the format of the Single Survey could be improved and made more customer-friendly.

4.11 The consultation questions then moved on to consider the categories used to provide information on the urgency of repairs in the Single Survey. The categories are as follows:

• Category 3 - urgent repairs or replacement are needed now
• Category 2 - repairs or replacement requiring future attention
• Category 1 - no immediate action or repair is needed.

Question 19: Should repairs categories in the Single Survey be amended to make them consistent with the categories used in the Scottish House Condition Survey?

4.12 Question 19 asked respondents if these repairs categories should be amended to make them consistent with the categories used in the Scottish House Condition Survey. The balance of opinion on this issue is set out in Table 19 below.

Table 19: Question 19 - Response by Respondent Type

Respondent Type	Yes	No	Mixed	N/A	Total
Chartered Surveyors	1	8	-	-	9
Construction Industry	3	-	-	-	3
Consumer, Advice & Campaign Groups	2	-	-	3	5
Legal Profession and Estate Agencies	3	3	-	2	8
Local Authorities, including Trading Standards	2	2	-	3	7
Property Management, Maintenance and Conservation	2	4	-	1	7
Other	2	2	-	4	8
Individuals	25	55	1	16	97
TOTAL	40	74	1	29	144
Percentage	28%	51%	1%	20%	100%
Percentage of those responding	35%	64%	1%	-	100%

4.13 The majority of respondents (64% or 74 of the 115 respondents who answered this question), did not think that the repairs categories should be amended. Construction Industry and Consumer, Advice and Campaign Groups were the only categories of respondent in which the majority of the albeit small number who answered this question supported a change.

4.14 Respondents who did not support a change tended to make only limited further comments, many of which suggested that the existing categories are easily understood and clear, including for buyers and sellers. It was also suggested that the same could not be said to apply to the categories used in the Scottish House Condition Survey. It was also noted that the Single Survey categories correspond closely to those used in the RICS Home Buyers report.

4.15 Those respondents who did support a change tended to point to the advantages or simple logic of taking a consistent approach. More specifically, the principle benefit identified was the opportunity to collect comparable data through both surveys and, by extension, be able to produce better and more up to date information on the condition of the private housing stock. In terms of developing an accurate picture of the stock, one Campaign Group Respondent noted that the Scottish House Condition Survey does not collect useful information about accessibility.

Question 20: Is the valuation element of the Single Survey a useful element of the Home Report?

4.16 Respondents' views on whether the valuation element is useful are set out in Table 20 below.

Table 20: Question 20 - Response by Respondent Type

Respondent Type	Yes	No	Mixed	N/A	Total
Chartered Surveyors	9	-	-	-	9
Construction Industry	1	-	-	2	3
Consumer, Advice & Campaign Groups	1	-	-	4	5
Legal Profession and Estate Agencies	3	4	-	1	8
Local Authorities, including Trading Standards	4	1	-	2	7
Property Management, Maintenance and Conservation	5	1	-	1	7
Other	3	-	1	4	8
Individuals	72	12	-	13	97
TOTAL	98	18	1	27	144
Percentage	68%	13%	1%	19%	100%
Percentage of those responding	84%	15%	1%	-	100%

4.17 A very clear majority of respondents (84% or 98 of the 117 respondents who answered this question), thought the valuation is useful. Legal Profession and Estate Agent Respondents were the only respondent category in which the majority did not consider the valuation to be useful, albeit by only a small margin.

4.18 Many of those who went on to make further comments often suggested the valuation is not just useful but is the essential and potentially the most important element of a Home Report. Some pointed to the reasoning behind its inclusion - to try and address the setting of unrealistic asking prices - and suggested that anything that helped prevent that occurring or reoccurring was of value. However, it was also noted that the value can be less useful in a rising market. It was also suggested that to ensure the valuation continues to be of value, a record of the valuations and eventual sale prices should be kept.

4.19 Some respondents also noted that the valuation is helpful to both seller and buyer. From a buyer's perspective it was suggested that the valuation helps prospective purchasers determine how much finance they can raise and also gives them vital information to inform any decision on how much to offer for a property. It was also suggested that without the valuation figure additional surveys would need to be commissioned.

4.20 However, a small number of respondents had a very different perspective on the usefulness of the valuation. Independent Respondents who questioned its value tended to point to its subjectivity and that it only represents the opinion of one person. It was also suggested that it sets an artificial level based on recent comparable sales and that surveyors are always 'behind the curve' with regard to house prices. It was also suggested that ultimately buyers do not trust Home Report valuations - which they see as being set in the best interests of sellers - and hence they are of limited, if any, value.

Energy Report

4.21 The Energy Report provides information about a home's energy efficiency rating and its environmental impact in terms of CO₂ emissions. The Report also recommends ways to improve the home's energy efficiency. In practice, the Energy Report is provided via the domestic Energy Performance Certificate and a Recommendations Report, the provision of which is mandatory under the Energy Performance of Buildings Directive.

Question 21: Is the information provided in the Energy Report appropriate and useful?

4.22 Question 21 asked whether respondents consider the information provided in the Energy Report to be appropriate and useful. The balance of opinion is set out in Table 21 below.

Table 21: Question 21 - Response by Respondent Type

Respondent Type	Yes	No	Mixed	N/A	Total
Chartered Surveyors	8	-	1	-	9
Construction Industry	-	-	-	3	3
Consumer, Advice & Campaign Groups	3	-	-	2	5
Legal Profession and Estate Agencies	3	4	-	1	8
Local Authorities, including Trading Standards	4	-	1	2	7
Property Management, Maintenance and Conservation	6	-	-	1	7
Other	2	-	2	4	8
Individuals	61	20	-	16	97
TOTAL	87	24	4	29	144
Percentage	60%	17%	3%	20%	100%
Percentage of those responding	76%	21%	3%	-	100%

4.23 A majority of respondents (76% or 87 of the 115 respondents who answered this question), thought the information provided in the Energy Report is appropriate and useful. As at a number of earlier questions, Legal Profession and Estate Agent Respondents were the only respondent category in which the majority disagreed, albeit again only by a small margin.

4.24 Further comments made by those that supported the current content of the Energy Report sometimes focused on the importance of buyers being provided with energy efficiency-related information. These included some comments from a small number of Individual Respondents who suggested it had proved useful to them when considering and addressing energy performance issues in their own property. Other comments from Individual Respondents included that the Energy Report gives a prospective purchaser a guide to future running costs and highlights energy saving opportunities.

4.25 However, even amongst those who thought the Energy Report to be useful, some questioned the extent to which buyers actually consider the information contained within it or use it to inform their buying decisions. One Construction Industry Respondent reported that their own on-going consumer research suggests that the information provided in the EPC is neither understood by nor useful to buyers. Some respondents who did not consider the Energy Report to be useful suggested that prospective buyers simply have no interest in the Energy Report. A small number of Individual Respondents suggested that although they had read Energy Reports when looking for a property, it had been the Single Survey which directly influenced their decision-making.

4.26 However, a number of respondents suggested the Energy Report could and should go further, with specific suggestions often echoing those made at Question 3 and including:

• The EPC rating should be given greater prominence, perhaps by being moved to the front of the document and should include a clear comparison with the Scottish average rating.
• Requiring the seller to provide the last 12 months of actual energy costs, or best estimates of these costs (this could be part of the property questionnaire).
• Provide income generation figures for any small-scale renewables (this could also be included in the Single Survey so it is taken into account for the valuation).
• Provide estimated energy bill savings due to energy efficiency measures or renewables.
• Provide a basic explanation of any installed small-scale renewables, along with contact details for Home Energy Scotland so the buyer can access independent advice on these technologies.
• Include signposting to existing grants and incentives to encourage take-up of these grants.
• Addition of a simple summary at the beginning of the Report which states whether or not the property meets an acceptable standard, along with an easy to understand explanation of what would be required to bring it up to standard.

4.27 Other issues raised by respondents included:

• It will be difficult to make changes to the Energy Report as the EPC is prescribed within the Energy Performance of Buildings Directive.
• There are some concerns about the variability and reliability of EPCs.
• Although an EPC states it is valid for 10 years, if it forms part of a Home Report which is more than 12 weeks old at the point of marketing it is in fact no longer valid, leaving a seller having to pay for a further EPC.
• Most of the information in the Energy Report is based on often inaccurate assumptions. In particular, it was suggested that the estimations of energy consumption are usually excessive.
• Financial incentives will be required to raise the profile of energy efficiency in the home and to encourage buyers to take it into account when making their purchasing decisions.

Property Questionnaire

4.28 The Property Questionnaire contains information for home buyers about, amongst other things, a home's council tax banding, parking facilities, factoring arrangements, any local authority notices that affect it and alterations that have been made.

Question 22: Is the information provided in the Property Questionnaire appropriate and useful?

4.29 Question 22 asked respondents whether they thought the information provided in the Property Questionnaire is appropriate and useful. The balance of opinion is set out in Table 22 below.

Table 22: Question 22 - Response by Respondent Type

Respondent Type	Yes	No	Mixed	N/A	Total
Chartered Surveyors	8	1	-	-	9
Construction Industry	-	-	-	3	3
Consumer, Advice & Campaign Groups	1	-	1	3	5
Legal Profession and Estate Agencies	3	4	-	1	8
Local Authorities, including Trading Standards	2	3	1	1	7
Property Management, Maintenance and Conservation	2	4	-	1	7
Other	3	1	-	4	8
Individuals	60	19	3	15	97
TOTAL	79	32	5	28	144
Percentage	55%	22%	3%	19%	100%
Percentage of those responding	68%	28%	4%	-	100%

4.30 A majority of respondents (68% or 79 of the 116 respondents who answered this question), thought the information provided in the Property Questionnaire is appropriate and useful. Legal Profession and Estate Agent and Property Management, Maintenance and Conservation Respondents were the only respondent categories in which the majority disagreed.

4.31 In their further comments some respondents noted what they saw as the strengths of the Property Questionnaire. These included that it provides a range of relevant information, particularly in terms of what a potential buyer can expect in terms of financial outgoings relating to council tax, services etc. It was also suggested that it has helped move away from the 'buyer beware'^[10] scenario that previously applied to house purchasing. More specifically, it was noted that the seller has to disclose any issues, such as incidents with neighbours, about which a buyer may be unaware.

4.32 Other further comments tended to focus on the completeness and veracity of the information provided. For example, a number of Individual Respondents reported receiving Property Questionnaires in which much of the information was listed as not available, or in which parts had been left blank and were unsigned. One Local Authority Respondent commented that while the right questions are being asked, the problem is that the seller is under no real obligation to disclose important information which could affect the valuation of the property - such as in relation to common property condition, title conditions and potential hazards such as subsidence, liability to flooding or the presence of asbestos. This respondent considered there may be a case for ensuring that the seller is legally obliged to disclose such information. One specific suggestion made by a Legal Profession Respondent was that institutional sellers, and in particular banks selling repossessed properties or trustees in sequestration, should be required to provide as much information as possible.

4.33 It was also noted that the value of the Property Questionnaire is very much dependent on the owner providing a true and accurate reflection, with some respondents raising concerns about the reliability of some of the information being provided. It was also suggested that sellers may find the Questionnaire very difficult to complete. One suggested approach was the issuing of a leaflet which explains the responsibilities of the seller during the Home Report process, including their duty in relation to the Property Questionnaire.

4.34 Suggested additions or other changes to the Property Questionnaire included the rephrasing or refocusing of some of the questions. A specific example given related to whether the sellers have carried out any alterations to the property. It was suggested that their answer could be of limited value if they have only owned the property for a short period and that the Questionnaire should also be asking if they are aware of any alterations carried out to the property by previous owners and which would have required local authority consent.

4.35 More generally, it was suggested that the Property Questionnaire should address all of the matters which are normally the prerogative of the planning authority in the obtaining of property clearances. Examples given included reference to Scheduled Ancient Monuments or Inventory of Gardens and Designed Landscapes sites and landscape designations including National Parks and National Scenic Areas.

4.36 A further suggestion was that the Property Questionnaire does not adequately address factors which relate to the drinking water supply but that there are important issues which do need to be highlighted to prospective buyers. These include lead in drinking water and the ownership and maintenance of private water supplies. It was proposed that the Questionnaire should ask about the type of supply it is (i.e. spring/borehole), the responsibilities of the owner of the property, if the supply has treatment, the maintenance record, when it was last sampled and the results of these samples. It was also noted that owners can have shared ownership and responsibility for shared water supply pipes and that this should be explicitly mentioned.

4.37 Other suggested additions included:

• Information about the status of the seller, for example whether they are the owner or an executor.
• National House-Building Council guarantees should be displayed more prominently.
• Information on factoring arrangements^[11] and charges and any other common charges that could apply.
• The opportunity to provide confirmation of repairs in-hand, works instructed etc.
• Information on energy usage, based on actual costs over the preceding 12 months, could be included.

Question 23: Should an additional question on land maintenance fees be added to the Property Questionnaire?

4.38 The final question asked respondents if an additional question on land maintenance fees should be added to the Property Questionnaire. Respondent's views on this possible addition are set out in Table 23 below.

Table 23: Question 23 - Response by Respondent Type

Respondent Type	Yes	No	Mixed	N/A	Total
Chartered Surveyors	4	5	-	-	9
Construction Industry	1	-	-	2	3
Consumer, Advice & Campaign Groups	1	-	-	4	5
Legal Profession and Estate Agencies	4	2	-	2	8
Local Authorities, including Trading Standards	5	-	-	2	7
Property Management, Maintenance and Conservation	6	1	-	-	7
Other	3	1	-	4	8
Individuals	39	41	1	16	97
TOTAL	63	50	1	30	144
Percentage	44%	35%	1%	21%	100%
Percentage of those responding	55%	44%	1%	-	100%

4.39 Compared to other issues covered by the consultation, views on this issue were relatively evenly balanced although a small majority (55% or 63 of the 114 respondents who answered this question), did favour the introduction of an additional question.

4.40 Limited further comments were made. Of these, many suggested either that this information is not required, or alternatively that it would seem sensible to include any relevant information and that potential buyers should be provided with as much pertinent information as possible, particularly if it relates to charges or financial obligations. It was also noted that such charges can affect the valuation of the property.

4.41 One Local Authority Respondent reported that land maintenance fees are the single biggest issue raised with trading standards about land management companies and factors. This Respondent had received numerous complaints from house purchasers who had not been made aware of common charges burdened on the property before making the purchase. They noted the work already done in this area (such as the passing of the Property Factors (Scotland) Act 2011) and considered that adding this requirement to the Home Report would complement the work already done.

4.42 Other points raised included that this change would involve the establishment of a clearer set of responsibilities for estate agents and conveyancing solicitors in respect of the information to be provided to prospective homeowners on title conditions, the Tenement Management Scheme and factoring arrangements.