The MAB says that lenders may continue to insist on a separate valuation from a chartered surveyor before offering a mortgage decision and this will mean that both the buyer and seller will be paying for a valuation, doubling costs.
Brian Murphy, Lending Manager at MAB, comments: “MAB has found that lenders are concerned about the level of qualification required to become a home inspector compared to a chartered surveyor. Lower qualification levels may imply a less accurate survey in a Home Condition Report.
“In addition there is the issue of security. Professional Indemnity insurance (PI) is already in short supply and home inspectors may struggle to achieve adequate protection against negligence claims.
“While HIPs will undoubtedly speed up the conveyancing process, the Home Condition Report will be of little use if it does not have the trust and support of lenders.”
