8 February 2014

Home Surveys recommended

Home Surveys recommended

An independent property valuation inquiry suggests Home Reports in England and Wales could prove beneficial to the property market and consumers.

The report “Balancing Risk and Reward: Recommendations for a Sustainable Valuation Profession in the UK” follows a public consultation into the operation of the valuation market in July 2013, commissioned by Royal Institution of Chartered Surveyors (RICS).

The commission was established to address current problems in the property valuation market. I have consulted with lenders, insurers, valuers, lawyers, regulators and all other interested parties in this sector. I hope that the recommendations in my report will help to ensure that the market works effectively in the future.

The Commission chair is Dr Oonagh McDonald CBE, former MP and Complaints Commissioner for ICE Futures and ICE Clearing.

One of the 12 recommendations contained in the report is to explore the possibility of introducing Home Reports in England and Wales. The commission goes on to suggest that this is considered at the conclusion of the current Scottish Government Home Report review, initiated in December 2013.

The report also recommends that panel managers – who commission valuers on behalf of lenders – should develop their own code of practice, in conjunction with RICS and other stakeholders. Such a code would help to ensure that high standards are delivered.
Home Reports in Scotland are carried out by chartered surveyors who are amongst the most highly regulated professionals in the UK. When carrying out survey and valuation reports, RICS members must adhere to a strict mandatory set of valuation standards which are internationally recognised; they must be covered by professional indemnity insurance; be a member of RICS’ Valuer Registration and have in place mechanisms to address consumer complaints and redress.

The Home Report provides purchasers with detailed information to ensure they are fully aware of all the facts relating to condition and value before committing themselves to what is probably the largest financial decision they will make.

We are working directly with the Scottish Government on the review of the Home Report to help develop it further for buyers, sellers and lenders says
Sarah Speirs, Director RICS Scotland