Regulated standard to clear up confusion, standardise best practice, and serve the needs of a changing market place
To improve and standardise the home buying and selling process for all parties, RICS has today published a consultation for both industry and consumers on a mandatory RICS Home Survey Standard. This will serve the changing needs of the market place, demystify the process for consumers, and will standardise best practice and survey offerings.
Working with industry groups, RICS has reviewed the current market place and suggested changes to make it simpler for homebuyers and sellers to understand what will and what won’t be checked in a home survey, as well as make it simpler for the consumers to specify their needs.
As part of this, RICS is seeking the views of residential professionals and consumers over the next few months, to ensure the new standard is fit-for-purpose and helps to simplify the home buying and selling process. The consultation period is for three months, closing on 28 July https://consultations.rics.
With the property industry opening up to first time buyers after a period in decline, (home ownership in the 35-44 year age group up 5%; English Housing Survey, 2017/2018) consumers must be clear on the process and benefits of a home survey. Currently, there is a great deal of consumer confusion over various surveys vs a valuation for a mortgage lender, and although 75% of people who bought a home in the last 10 years got a survey, 21% remain unsure as to which one it was.
One of the proposed changes out for consultation will be to refer to surveys by level, and not a name – becoming level one, two and three. This will make it easier for consumers to identify what type of survey they need for which type of house. The standard also proposes requirements for RICS members to be familiar with the nature and complexity of the property type and the region in which it is situated, relevant to the subject instruction.
The professional statement in consultation will also ensure standardised best practice in key items such as complete records; clear understanding of the clients needs between parties; explanation of the nature of and differences between the levels of service offered so they can make an informed choice; and agreement on the full details of the terms of engagement before the service is delivered.
Other items that will help clarify the market place will include undertaking appropriate pre-inspection research to support the service offered; offering further investigation only when appropriate; and to be clear on any limitations of the service requested. It also highlights the need for professionals to deliver a property specific, clear report properly reflecting the acquired information and offer to discuss the findings with the client following delivery
While these items are standard best practice, the need for consumers to understand the services and get the product they require will be underlined and best practice standardised for RICS Professionals and Registered firms across the UK. When finalised later in the year, the standard will become mandatory for all RICS Professionals. Using a regulated RICS professional, or firm, will therefore make sure that the consumers get the information they require and will ensure that any home survey undertaken by an RICS home survey professional are completed to the highest professional standards, and provides all the information the consumer needs.
RICS will provide further consumer advice and documents when the surveys are launched to market post consultation, alongside supporting tools and terms and conditions for members delivering home surveys including consumer information.
Paul Bagust, Global Property Director, comments:
“As part of our commitment to promote and enforce the highest standards in the residential sector, the new Home Survey Standard brings together the views of consumers, cross-industry stakeholders and practitioners to become the sector best practice benchmark in achieving consistency and high quality to meet evolving client demands in the home survey market.
“We are now leading an extensive public consultation to deliver a standard which ensures transparency, consistent competence and high level of service as expected from RICS professionals.
“Attaining the highest professional and ethical standards is vital to provide consumers assurance that work undertaken by home surveyors meets these standards.”