a Home Report is a pack of documents that anyone selling a residential property in Scotland must provide to prospective buyers. It became a legal requirement in 2008 with the enactment of the Housing (Scotland) Act 2006. Its primary purpose is to provide potential buyers with detailed information about a property before they decide whether to make an offer.
The act aimed to improve the process of buying and selling homes by giving buyers, and sellers, access to more information about the condition a property before they decide to make an offer. Making the process of buying a home easier, more efficient, and more transparent.
Home Reports reduced the need for every prospective buyer to commission their own survey prior to purchase – a lengthy, disruptive, costly and often time-consuming process. Buyers can still make offers subject to carrying out their own survey if they wish but many choose to rely on the survey in the Home Report.
A standard Home Report includes the following three components:
- Single Survey: This is a detailed report about the condition and value of the home. It includes an accessibility audit for people with particular needs. The report gives the property a condition rating of either 1. (no immediate action or repair is needed), 2 (repairs or replacement requiring future attention) and 3 (requires urgent repair or replacement).
The Single Survey is carried out by a surveyor who will visit the property to assess its condition and potentially also provide an assessment of its market value. This valuation is often used by buyers to help decide what offer to make and by mortgage lenders to decide how much they are willing to lend for the purchase of the property. However both mortgage lender and buyers can commission their own Surveys or valuations if they choose. For more, see our article on Surveys and our article on Valuations
- Energy Report: Produced by the surveyor. This provides an energy efficiency rating for the home and looks at the impact the home has on the environment in terms of carbon dioxide emissions. It also recommends ways to improve the home’s energy efficiency and reduce emissions. For more, see our article on Energy Performance Certificates.
- Property Questionnaire: Completed by the seller of the home, this provides useful information across sixteen different categories, such as the property’s council tax band, parking arrangements, factoring arrangements, any alterations that have been made, and other material information. For more, see our article on The Property Questionnaire
It’s important to note that not every property in Scotland requires a Home Report. There are some exceptions, such as newly converted properties and new build properties sold off-plan.
Home Reports can also include a property valuation.
- Valuation: The seller can optionally ask the surveyor to include a valuation as part of the Home report. It’s important to note that the valuation provided in a Home Report is only one person’s opinion of the property’s value at the time the survey was conducted. Market conditions can change, and the actual sale price may be higher or lower depending on a variety of factors such as demand for properties of that type, size, and location, as well as any changes to the property or its condition since the Home Report was completed.