“Mandating these surveys, along with compulsory publication of their findings, will change the survey landscape drastically, and not for the better.”
The UK government has announced a homebuying plan to save buyers time and money when moving home. The proposals would require sellers and agents to include essential information on their property listings, so that potential buyers can find out about leasehold costs, service charges, planning consents, flood risk and even the chains that would be involved in the property transaction.
Crucially for surveyors, the consultation proposes that the upfront information will need to include “property condition assessments tailored to property age and type”, i.e., building survey reports.
Pre-arming buyers with information about the state of a property would in theory be hugely beneficial; saving time by avoiding the need for a survey post-offer is the tip of the iceberg. In theory, transaction failure could be drastically reduced, as buyers won’t get any worrying surprises at the last minute. Initial offers (and optimistically, maybe even listing prices) would take into account survey findings, leading to less need for negotiation post-offer/pre-exchange.
However, this could all be wishful thinking. “It is hard to see these proposals working from a surveying perspective,” Tim Allcott FRICS commented. “There is a clear conflict of interest at the point of arranging a survey if it is to be used in a home information setting. Buyers will be – consciously or unconsciously – looking for low-cost surveyors who are likely to miss key defects; not thorough reports detailing each defect and even each potential defect.”
“In turn, this will mean that buyers are either faced with unexpected repair and maintenance costs after completion, or will still feel the need to instruct their own survey so that they can be sure they have a comprehensive insight into the home they are buying.”
“Vendor surveys can be extremely helpful. They play a key role in helping sellers prepare for putting their house on the market, and can of course be transferred to the buyer if all parties agree. But mandating these surveys, along with compulsory publication of their findings, will change the survey landscape drastically, and not for the better.”