Q. What are the advantages of including a Home Condition Report in the Home Information Pack?

A. The Home Information Pack will ensure that the necessary preparation is undertaken to enable the transaction to proceed smoothly. Any information that might delay or prevent a sale should be available up front at the very start of the transaction. Late availability of condition information frequently causes problems.

Government research suggests that 43% of failed transactions do so as a result of problems revealed by a valuation inspection or condition survey after terms have been agreed. The cost to consumers can be around £1,000 per transaction. Moreover, even where transactions do not fail they are often delayed whilst renegotiations take place. That is why it is important for condition problems to be identified up front.

These are some of the advantages for both sellers and buyers :

• helping sellers make decisions about how much to ask for their home, and give them the option of having any necessary work done or else getting quotes before they market the property.
• helping buyers make an offer, which reflects the true condition of the property, and avoid unexpected bills when they move in.
• for both seller and buyer there is much less risk that the transaction will be delayed or fail due to problems with the condition being revealed later.

Q. What will a Home Condition Report cover?

A. The Home Condition Report will be an objective report on the condition of the property that can be relied upon by buyer, seller and lender. The report will be in a standard format prepared in accordance with national occupational standards. It will cover matters of importance to a buyer - the general condition of the property taking account of its age, character and location; how energy efficient it is; and any defects or other matters requiring attention.

Q. Will the Home Condition Report be based on a homebuyer survey, or a more detailed building survey?

A. The Government have started from scratch and, with the help of the Royal Institution of Chartered Surveyors and other key stakeholders a new format will give prospective buyers the information they need in clear and easily understood terms. The HCR will be a mid range survey, similar in depth to the current level 2 survey, the Homebuyers Survey and Valuation, although without the valuation element.

Q. Will a Home Condition Report include a valuation?

A. No. Including a valuation in the condition report may interfere with the usual bargaining process between buyers and sellers.

Q. What will a Home Condition Report cost?

A. The cost of the HCR will not be fixed by any central body. It will be determined by market forces - the price charged will reflect a number of factors, including the time the Home Inspector needs to undertake the task (which in turn will depend on the size and complexity of the property), and on local market conditions. By way of illustration, the cost of preparing a HCR for a typical 1930s three-bedroomed semi-detached house located in a provincial town could be around the £350 mark. This is offset by potential savings on abortive costs, unexpected repair bills and fewer mortgage valuation surveys.