If you are buying a property in Scotland, taking the time to understand the Home Report can help you feel more confident about your purchase. It provides valuable information about a property’s condition and market value, helping you make informed decisions before submitting an offer.
In this article, we’ll explain the key parts of a Home Report, highlight some common issues buyers should be aware of and outline how the valuation may influence both your offer and mortgage.
What Is a Home Report?
A Home Report is a pack of documents prepared before a residential property is marketed for sale in Scotland.
Prepared by independent professionals and the seller, the Home Report brings together key information about the property’s condition, energy efficiency and value, giving prospective buyers a clearer picture of the property before they decide to commit to a purchase.
What Does a Home Report Include?
A Home Report consists of three main documents:
- Single Survey
The Single Survey is prepared by a chartered surveyor and provides an assessment of the property’s condition and market value.
The survey covers key elements of the property, including:
- Roof coverings
- External walls
- Windows and doors
- Plumbing and drainage
- Electrical installations
- Internal accommodation
The surveyor assigns condition ratings to various parts of the property:
- Category 1 – No immediate action or repair is needed.
- Category 2 – Defects require repair or replacement in the future but are not considered urgent.
- Category 3 – Urgent repairs or replacement are required and investigation may be necessary.
Buyers should pay particular attention to any Category 3 items, as these can lead to significant repair costs.
- Energy Report – EPC
The Energy Report provides information about the property’s energy efficiency and environmental impact.
It includes:
- The property’s Energy Performance Certificate (EPC) rating
- Estimated energy costs
- Recommendations for improving efficiency
- Information about insulation and heating performance
EPC ratings vary from property to property. New build homes typically achieve higher ratings than older properties due to improved insulation and more energy-efficient construction methods.
The report can help buyers understand potential running costs and identify opportunities to improve energy efficiency in the future.
- Property Questionnaire
The Property Questionnaire is completed by the seller and contains practical information about the property, including:
- Council tax banding
- Alterations and extensions the seller is aware of
- Parking arrangements
- Factors and common maintenance arrangements
- Guarantees and warranties
- Any history of flooding or storm damage
Although the seller completes this section, it can highlight issues that may require further investigation or legal enquiries through your solicitor.
Common Home Report Issues Buyers Should Look Out For
While every property is different, certain issues regularly appear in Home Reports and may require closer attention.
Dampness and Water Ingress
References to dampness, staining, condensation or water penetration shouldn’t be ignored. These issues can sometimes indicate more substantial underlying defects that may require specialist investigation. Buyers can make an offer subject to a damp survey being obtained. Additional reports are usually paid for by the purchaser, although sellers may occasionally instruct their own.
Roof Repairs
Older properties often show signs of wear to roof coverings, chimneys or flashings. If you are concerned about the condition of the roof, it may be sensible to instruct a roof survey before proceeding.
Electrical Concerns
Surveyors are not electricians and generally provide only a visual assessment of electrical installations. If the Home Report indicates concerns about the property’s electrical system, buyers should consider obtaining a specialist report such as an Electrical Installation Condition Report (EICR).
Timber Defects
Woodworm, rot and deterioration of timber structures can be expensive to remedy. Particular caution should be exercised where the survey recommends further investigation.
Alterations & Extensions
The Property Questionnaire may reveal extensions, structural alterations or property conversions. Where alterations have been carried out, your solicitor will ask for and review all relevant alteration documents, including planning permissions, building warrants and completion certificates to ensure the works were properly authorised.
How Home Report Valuations Affect Offers and Mortgages
One of the most important parts of the Single Survey is the surveyor’s valuation.
In Scotland, mortgage lenders commonly rely on the Home Report valuation when assessing a mortgage application. While lenders may carry out additional checks or instruct a separate valuation in certain circumstances, the Home Report valuation often forms the basis of the lender’s assessment.
This also has practical implications for buyers when deciding how much to offer for a property.
When considering what to offer for a property, buyers should pay close attention to the valuation figure in the Home Report. In Scotland, the advertised ‘Offers Over’ price is often set below the Home Report valuation to attract interest and encourage competition between potential buyers.
If a property attracts significant interest, the final purchase price may exceed the Home Report valuation. Where this happens, lenders will normally base their mortgage calculations on the valuation figure rather than the agreed purchase price.
For example, if a property has a Home Report valuation of £250,000 but a buyer agrees to pay £270,000, a lender will usually calculate the mortgage using the £250,000 valuation. The buyer must therefore fund not only their deposit but also the £20,000 difference from their own resources.
Understanding this distinction is particularly important when budgeting for a property purchase.
When Should You Seek Professional Advice?
Although Home Reports provide a useful overview of a property’s condition and value, professional advice can help buyers better understand any issues identified and make informed decisions before proceeding.
Buyers should consider seeking support where:
- The report contains Category 3 defects.
- Significant repairs are anticipated.
- Specialist investigations are recommended.
- The property is of unusual .
Your solicitor can advise on legal matters arising from the Home Report and help identify any issues that require further investigation before a purchase is completed.
Key Takeaways for Property Buyers
A Home Report is a valuable tool that helps buyers understand a property’s condition, value and practical considerations before making an offer. However, obtaining the report is only the first step. Buyers should take time to review its contents carefully then discuss in depth with your solicitor to understand any limitations and investigate any significant issues identified by the surveyor.
By paying close attention to condition ratings, understanding how valuations affect mortgage borrowing and seeking professional advice where necessary, buyers can approach their purchase with greater confidence and minimise the risk of unexpected costs after completion.
If you have questions about a Home Report or are considering a property purchase, our residential property team can help you understand the implications of the report and guide you through the buying process with confidence.
Frequently Asked Questions – Home Reports
Frequently Asked Questions About Home Reports
- Is a Home Report mandatory in Scotland?
A Home Report must be obtained before a residential property is marketed for sale in Scotland on the open market A Home Report is not necessary if a property is being sold privately however an Energy Performance Certificate must be obtained.
- How long is a Home Report valid?
A Home Report does not have a formal expiry date. However, if a Purchaser is taking a mortgage, the lender will request a refresh of the Home Report if it is more than 3 months old.
- Who pays for the Home Report?
The seller is responsible for obtaining and paying for the Home Report before marketing the property.
- Can you make an offer subject to further surveys?
Yes. If the Home Report raises concerns about issues such as dampness, roofing or structural defects, buyers can often make an offer subject to receiving satisfactory specialist reports.
- Does the Home Report valuation affect my mortgage?
Yes. Mortgage lenders will often base their lending calculations on the Home Report valuation rather than the agreed purchase price, particularly where a property sells above valuation.
