Technical Inspections of Buildings from a                  European perspective           The Home Condition Report and ot...
Royal Institution of Chartered Surveyors   Royal Institution of Chartered Surveyors  Gap in market                     The...
Home Inspection ProcessHistorically there has been no formal requirement for thecondition of a home in private ownership t...
Home Information Packs (England & Wales)What was included? Legal documents regarding use and charges Energy Performance Ce...
The Energy Performance Certificate                    Ratings based on:                    o    the age and size of the pr...
Condition Report – Condition RatingsCondition Rating 1 – No repair is currently needed. The property                     m...
Reporting LevelsCondition Reporto   A basic report, similar to the HCRo   No repair advice, valuation or rebuilding costHo...
Condition Report – Scope of Inspection   Careful surface inspection of all accessible external and internal elements   Hea...
Condition Report - Sample Page                                 2011                                        17Condition Rep...
Costs No fixed scale of charges Average cost of Condition Report:     €240-300 Average cost of Homebuyer Report: €360-500 ...
Linkwww.rics.org/homesurveys      Questions?    ddalby@rics.org                           2011   21
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David Dalby - Technical Inspections of Building from a European perspective

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David Dalby - Technical Inspections of Building from a European perspective

  1. 1. Technical Inspections of Buildings from a European perspective The Home Condition Report and other assessments in UK David Dalby, FRICS Director – RICS Professional Groups 2011 1 Agenda1. Background2. The relationship mortgage valuations and condition reporting3. England & Wales and Scotland – different requirements4. Inspection and reporting levels5. The market for condition reporting 2011 2
  2. 2. Royal Institution of Chartered Surveyors Royal Institution of Chartered Surveyors Gap in market The mark of property professionalism worldwide Consumer reliance on 000 professionals (qualified, trainees and 140 MV students) operating in 146 countries Relatively poor take-up of HBR or BS Advancing global standards in land, property and Raised consumer construction andcondition issues awareness of the environment Professional regulation, consumer protection External competition and advice Changing lender/conveyancer attitudes (tcf) Impartial thought leadership in the public interest Cutting edge research and economic analysis. 2011 2011 3 Home Inspection ProcessNew Homes Inspections linked to compliance with appropriate standards (Building Regulations) Further inspections by Warranty providersExisting Homes Mandatory inspections only required for alterations and extensions Inspections on sale/purchase only compulsory for lending – valuation, not condition. 2011 4
  3. 3. Home Inspection ProcessHistorically there has been no formal requirement for thecondition of a home in private ownership to be assessedHowever properties owned by municipalities and socialhousing providers are often subject to regular conditionreviewSuch Stock Condition Surveys are used for planningmaintenance programmes 2011 5 Government InitiativesHome Information Packs [HIPs] - England & Wales Introduced August 2007 Proposals originally included a Home Condition Report Suspended May 2010Home Report [HR] - Scotland Introduced December 2008 Includes Single Survey and Energy Assessment 2011 6
  4. 4. Home Information Packs (England & Wales)What was included? Legal documents regarding use and charges Energy Performance Certificate [EPC] Home Condition Report (withdrawn before Home Information Pack introduced) Seller questionnaire Following withdrawal of HIP, only requirement is for EPC on all homes for sale or rent 2011 7 Home Report (Scotland)What is included? Single Survey & Valuation Energy Report Property Questionnaire A valuation report for mortgage lending (optional) 2011 8
  5. 5. The Energy Performance Certificate Ratings based on: o the age and size of the property o the activities going on within the different spaces o the materials used in its construction o how it is heated, cooled and ventilated o how lighting is provided NOT – how occupation/lifestyle impacts on energy use 2011 9Scope of the Home Condition Report & Single Survey Assesses and grades the condition of individual elements of the property (roof, walls, windows, etc) Sets out details of construction, any defect and applied a Condition Rating (1, 2 or 3) Does not provide advice on repair, costs or value Identifies risks to occupiers Gives information to be passed on to legal advisors regarding servicing agreements, guarantees and warranties 2011 10
  6. 6. Condition Report – Condition RatingsCondition Rating 1 – No repair is currently needed. The property must be maintained in the normal way.Condition Rating 2 - Defects that need repairing or replacing but are not considered to be either serious or urgent. The property must be maintained in the normal way.Condition Rating 3 - Defects which are serious and/or need to be repaired, replaced or investigated urgently. 2011 11o Following withdrawal of the Home Condition Report, a number of providers developed their own report layouts, based on the HCR format.o RICS already had two types of report available, both more detailed that the HCRo RICS has now introduced it’s own Condition Report as part of a suite of home surveys 2011 12
  7. 7. Reporting LevelsCondition Reporto A basic report, similar to the HCRo No repair advice, valuation or rebuilding costHomeBuyer Reporto Similar format to Condition Reporto Identifies major defects onlyo Includes repair advice, valuation and rebuilding costBuilding Surveyo Detailed individual report, tailored to customer’s requirementso Describes all aspects of construction and conditiono Can include repair cost information 2011 13 Qualification Requirements Surveyor is not a protected term Home Condition Reports could only be prepared by qualified Home Inspectors Scottish Single Surveys can only be produced by Chartered Surveyors Voluntary Condition Reports are not restricted to a particular qualification RICS survey products can only be produced by RICS members Danger of public confusion around different reports and quality of those producing them 2011 14
  8. 8. Condition Report – Scope of Inspection Careful surface inspection of all accessible external and internal elements Heavy furniture and fixed floor coverings not moved Services (electricity, gas, drainage, heating systems) inspected but not tested 2011 15 Scope of ReportConstruction & condition on date of inspectionDefects that need urgent attention or are seriousMatters needing further investigation to prevent serious damage to the fabric of the propertyDefects or deficiencies which may be safety hazards and where further enquiries are needed 2011 16
  9. 9. Condition Report - Sample Page 2011 17Condition Report - Sample Page 2011 18
  10. 10. Costs No fixed scale of charges Average cost of Condition Report: €240-300 Average cost of Homebuyer Report: €360-500 Average cost of Building Survey: €720-1,000 Average cost of Scottish Single Survey (including the energy assessment: €600-840 2011 19 The market for the Condition Report Less than 20% of homebuyers in England & Walesobtain independent condition advice In Scotland, the Single Survey is mandatory, yet 15-20% of homebuyers still commission a separate report RICS Condition Report introduced April 2011 Initial trials suggest take-up rate is increasing to 40% Objective is to increase voluntary take-up to pointwhere majority of properties are sold with a report 2011 20
  11. 11. Linkwww.rics.org/homesurveys Questions? ddalby@rics.org 2011 21

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