A Homebuyer’s Report is one of several different types of report that can be purchased by the buyer of a property. The report comprises a valuation undertaken by an approved valuer, usually a qualified member of the Royal Institute of Chartered Surveyors (RICS). Qualified members have the designation MRICS or FRICS after their name.

The RICS Homebuyer Report will include comment on the general condition of the property, a ‘market valuation’, a valuation ‘for insurance purposes’ (an estimate of the cost to rebuild) and may also include notes to the buyer about specific items requiring attention, maintenance or further inspection/assessment.

Most lenders have approved ‘panels’ of valuers. It is important to make sure that your surveyor is on the appropriate panel for your lender, otherwise the report will probably not be accepted.

It’s worth trying to instruct an approved panel surveyor in your local area who is familiar with the type of property you are buying and the local area. A local surveyor will usually be better placed to provide an accurate valuation as they’re valuing that type of property in the same location every week.

Whilst you will be required to pay the costs of a Homebuyer’s Report, it is usual for the lender to require a mortgage valuation anyway and so they may need to be named on the report also so that they can rely upon the surveyor’s advice. Your conveyancer will be able to advise you on this.

The lender is simply interested in making sure that the valuation indicates that the property is worth enough to satisfy their lending criteria (e.g. Loan to Value Ratios, etc). This does not necessarily mean that the property is worth the sum that you have offered and it certainly does not mean that the property is necessarily structurally sound. This is why a homebuyer’s report might be useful to make sure you are not buying ‘a pig in a poke’!

If your chosen property is older or more unusual then you’d be well advised to consider a more detailed ‘building survey’ also referred to as a ‘structural survey.’ It will look in more detail at the structural condition of the property you are buying but the terms and conditions of such a report are likely to vary from a Homebuyer’s Report.

In most cases, especially when buying a new home, a Homebuyer’s Report is considered sufficient.

Also see our Valuations and Surveys page for more details.

For a free protection check, please contact us on 01628 507477.

Download our Free First Time Buyers Guide

Recent posts

The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.

The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income. 

According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes. 

More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.

There has been a rise in both rent and mortgage costs over the last three years, with renters seeing a greater increase in their monthly payments than those with a mortgaged property.

The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers. 

Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer. 

A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.