Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Call for Home Condition Surveys to Be Central in Homebuying Reform

A recent report from Mortgage Strategy highlights concerns that homebuying reforms may overlook the importance of the property itself. The article argues that upfront home condition surveys should play a central role in the government's proposed changes to the homebuying process.

The report states that a property's age, construction, condition, and history can significantly affect a buyer's plans, the advice they receive, and a lender's risk assessment. It warns that unless this information is available early and interpreted properly, speeding up the process will not necessarily improve outcomes.

Mortgage Strategy suggests that upfront home condition surveys can provide qualified professional insight before buyers make significant financial and emotional commitments. This would give buyers and those supporting them a firmer basis for decision-making. The report also emphasises the need for proper consumer protection through regulation, specifically involving RICS and RICS qualified surveyors.

The article notes that placing a survey at the beginning of the process is only the first step. The industry must decide what the survey should cover, how its findings will be shared, and maintain a clear distinction between a home condition survey for the buyer and a mortgage valuation for the lender.

Mortgage Strategy draws a comparison with Open Banking, noting that progress depended on agreed standards for data use. The report points out that while structured data can confirm certain property details, professional judgement is needed to interpret issues such as cracks, damp, or roof defects.

The article also highlights that property condition can quickly become a mortgage issue, with surveys sometimes identifying repairs that affect the buyer's plans or require further investigation. Bringing professional insight forward could help buyers form offers with a fuller understanding of the property and allow brokers to consider the financial impact of required work earlier in the process.

For these reforms to be effective, the report stresses the need for agreement on who commissions the survey, how long it remains valid, and what happens if repairs are carried out or the property stays on the market. Buyers must also understand what the survey covers and its limitations.