Property MOT’s

1. Property MOT’s Kate Faulkner BSc(Econ) MBA CIM DipM

2. Why do we need a home ‘mot’ • Same reason as we do for cars • Establish it’s safe to live in • Make sure if the property has a problem, owners can afford to fix it • Advise owners of work which needs to be carried to keep it up to a decent condition and at the required safety level • Encourage owners to spend money to keep the property safe and in a good condition • Unlike cars though • 60% of properties are over 50 years old • And the age can only go up • Average time someone lives in a property is 25 years

3. What should an MOT look like? • Should deliver the ‘practical’ informationabout the property and it’s condition and safety • Help people’s head rule their decisions vs heart • Property’s condition, structural perspective • Include drains/timber & damp reports • How safe the property is in to live in • Elec/gas/CO • Potential updates required during home ownership length • Including advice from existing EPC • Independent, trusted document used to brief professionals/specialists eg trade

4. Who should use it? • This should be a service/document for:- • Tenants • Buyers, including investors • Home owners and sellers • Housing associations • Leaseholders/freeholders • Should be either specific to their need eg buy to let investor who rents privately or General, while including detail for all parties

5. How should it be introduced? • Lenders shouldn’t be lending without property checks • Especially to BTL investors • Legal companies, via the conveyancing process, should be entrusted with ensuring the checks are done via the Property Information Form • Insurance companies should be responsible for checking whether the property is in good condition/safe on-going • Especially for BTL investors • Discounts should be given the more thorough the checks and for better maintained properties • Building contents insurance should be compulsory • Especially as more people will own a home outright than with a mortgage • Surveyors should be responsible for co-ordinating the checks

6. Property problems won’t go away • Owners, tenants, investors aren’t educated about property • Why bother fixing the roof when I can have a new kitchen? • If I’m renting and don’t do any research, I won’t know how to spot the good agents/landlords from the bad and I know nothing about CO • Especially because is not required for 65% of homeowners. • The industry does NOT support each other enough • Nor does it engage with consumers before or after purchase • There are not enough trade organisations working togetherin the interest of the consumer • Market is too fragmented • Should unite via first time buyer services, trading up/down, buy to let

7. Property problems won’t go away • Political parties whether in government or not, don’t understand the industry or consumer motivations • Only know ‘from their own experience’ • If you don’t know ‘how to’ or the ‘good guys’ to choose, you don’t know how great the market can and does work. • Keep getting suggesting of ‘minor fixes’ when ‘major initiatives’ are required • For example tinkering with ‘parts of’ the PRS process rather than regulate the market via the experts NALS/ARLA/RLA/NLA • Government policies encourage tenants and homeowners to work with rogues • Cheaper and charming • Use government initiatives to their advantage • VAT, tax, rules and regulations