1 00:00:00,040 --> 00:00:03,200 OK, let's dive in. We've all heard the stories. 2 00:00:03,280 --> 00:00:04,720 Maybe even live through it, right? 3 00:00:05,000 --> 00:00:06,920 You finally get the keys to your new place. 4 00:00:07,080 --> 00:00:09,520 You're thrilled. Boxes everywhere. 5 00:00:09,640 --> 00:00:11,800 Maybe you've cracked open some bubbly. 6 00:00:11,840 --> 00:00:13,800 And then it happens. Yeah, then you, I don't know, 7 00:00:13,800 --> 00:00:17,560 pull the corner of the carpet or tap a wall and suddenly you find 8 00:00:18,240 --> 00:00:22,040 this nasty surprise A. Hidden crack, damp creeping up 9 00:00:22,040 --> 00:00:24,520 from somewhere, maybe a roof that looked fine but was really 10 00:00:24,520 --> 00:00:26,720 just patched up for the sale. Exactly. 11 00:00:26,880 --> 00:00:30,240 And boom, those repairs? They're your problem now, your 12 00:00:30,240 --> 00:00:33,080 expense, long after you've signed on the dotted line. 13 00:00:33,360 --> 00:00:36,480 It's this this vicious cycle. It really is. 14 00:00:36,480 --> 00:00:40,000 It's that awful moment where the dream, you know, the excitement 15 00:00:40,000 --> 00:00:43,920 of buying a home, just crashes into this very expensive reality 16 00:00:43,920 --> 00:00:46,760 of things not being disclosed. And the sources we're looking at 17 00:00:46,760 --> 00:00:49,760 today from experienced surveyors, they suggest this 18 00:00:49,760 --> 00:00:52,880 isn't just like a few bad apples, it's almost standard 19 00:00:52,880 --> 00:00:54,560 practice. It can feel that way. 20 00:00:54,560 --> 00:00:57,800 It's often part of a strategy, sometimes subtle, sometimes not, 21 00:00:57,800 --> 00:01:01,040 concealed by those who frankly benefit most from a quick, 22 00:01:01,280 --> 00:01:03,960 smooth sail without any awkward questions asked. 23 00:01:04,239 --> 00:01:06,200 Right. So our mission today is to 24 00:01:06,200 --> 00:01:09,520 really dig into the government's latest attempt to tackle this. 25 00:01:09,960 --> 00:01:13,240 They're talking about mandatory upfront information binding 26 00:01:13,240 --> 00:01:16,200 contracts. The goal is to make buying a 27 00:01:16,200 --> 00:01:21,920 home faster, safer and the keyword here more transparent. 28 00:01:22,360 --> 00:01:25,240 But, and this is a big but, we have to look back, don't we? 29 00:01:25,240 --> 00:01:27,600 Oh, absolutely. Yeah, because this rings a bell 30 00:01:27,600 --> 00:01:28,760 for a lot of people. I imagine. 31 00:01:28,760 --> 00:01:30,960 It sounds an awful lot like something we've tried before. 32 00:01:31,160 --> 00:01:34,760 Deja vu indeed. This new plan immediately brings 33 00:01:34,760 --> 00:01:38,040 to mind the well the costly failure of the home information 34 00:01:38,040 --> 00:01:41,120 packs HIPS back in the late 2000s. 35 00:01:41,120 --> 00:01:43,800 Yes, hips. And understanding why HIPS 36 00:01:43,800 --> 00:01:46,400 didn't work is, I think, absolutely crucial if we want to 37 00:01:46,400 --> 00:01:48,800 have any hope of judging whether these new reforms stand a 38 00:01:48,800 --> 00:01:50,360 chance. OK, so refresh our memory. 39 00:01:50,360 --> 00:01:52,320 What were HIPS supposed to achieve? 40 00:01:52,600 --> 00:01:54,880 And you know, where did it all go wrong? 41 00:01:55,120 --> 00:01:57,800 Well, the idea behind HIPS seemed sensible enough. 42 00:01:57,800 --> 00:02:00,240 It was meant to empower buyers. Basically, sellers had to 43 00:02:00,240 --> 00:02:02,000 provide a pack of documents upfront. 44 00:02:02,000 --> 00:02:04,640 Things like energy performance certificates, some basic 45 00:02:04,640 --> 00:02:06,880 property info. Get the information out early, 46 00:02:07,200 --> 00:02:10,000 stop sales collapsing later down the line because of some hidden 47 00:02:10,000 --> 00:02:12,040 issue. Sounds good on paper. 48 00:02:12,120 --> 00:02:15,400 It did. But the execution, huh. 49 00:02:15,840 --> 00:02:18,480 Well, it was messy, to put it mildly. 50 00:02:18,520 --> 00:02:20,880 I seem to remember the biggest complaint was about the actual 51 00:02:20,880 --> 00:02:24,560 quality of the information in those packs, or maybe the lack 52 00:02:24,560 --> 00:02:26,240 of quality. That's exactly it. 53 00:02:26,520 --> 00:02:29,880 The packs were mandatory, sure, but enforcing the quality? 54 00:02:29,880 --> 00:02:33,040 That was the weak link. For many sellers, it just became 55 00:02:33,040 --> 00:02:36,120 another box to tick. They'd go for the cheapest, most 56 00:02:36,120 --> 00:02:37,840 basic assessment they could find. 57 00:02:38,040 --> 00:02:39,880 So not really useful information then. 58 00:02:40,160 --> 00:02:42,720 Often not, and sometimes the packs didn't even turn up until 59 00:02:42,720 --> 00:02:45,200 late in the process, which completely defeated the whole 60 00:02:45,200 --> 00:02:48,400 point of upfront information. Or they contain stuff that was 61 00:02:48,400 --> 00:02:51,560 totally non binding, sometimes irrelevant to the property's 62 00:02:51,560 --> 00:02:53,920 real condition. It just added bureaucracy. 63 00:02:53,920 --> 00:02:56,400 Loads of it without actually creating any real 64 00:02:56,400 --> 00:02:58,040 accountability. Which leads us right to the 65 00:02:58,040 --> 00:03:01,080 heart of the argument that experts, surveyors in 66 00:03:01,080 --> 00:03:03,040 particular, are making. Now they're saying the 67 00:03:03,040 --> 00:03:05,800 fundamental problem isn't really a lack of paperwork. 68 00:03:05,800 --> 00:03:08,280 We can always invent another form, another pack. 69 00:03:08,440 --> 00:03:11,200 Right, you can always mandate another document. 70 00:03:11,320 --> 00:03:15,440 But the real issue is this deep seated culture of concealment 71 00:03:15,440 --> 00:03:18,320 and poor preparedness that seems to run through the whole 72 00:03:18,320 --> 00:03:20,080 process. That's the core issue, 73 00:03:20,080 --> 00:03:22,320 Absolutely. We're not just talking about a 74 00:03:22,320 --> 00:03:24,600 failed regulation here. It's more fundamental. 75 00:03:24,600 --> 00:03:28,200 It's a cultural failure. If the whole system is sort of 76 00:03:28,200 --> 00:03:32,400 built on this old principle of caveat emptor, buyer beware. 77 00:03:32,400 --> 00:03:34,160 Let the buyer figure it out for themselves. 78 00:03:34,160 --> 00:03:37,000 Exactly. Then just forcing sellers to 79 00:03:37,000 --> 00:03:40,440 produce another binder full of papers doesn't actually stop 80 00:03:40,440 --> 00:03:43,720 someone, whether it's the seller or the agent, from say, quickly 81 00:03:43,720 --> 00:03:47,000 filling a crack, slapping some pain over it, and just hoping 82 00:03:47,080 --> 00:03:49,160 Surveyor doesn't spot it until it's too late. 83 00:03:49,440 --> 00:03:51,360 That's a really crucial distinction, isn't it? 84 00:03:51,360 --> 00:03:55,000 It's shifts this from being just a technical regulatory problem, 85 00:03:55,000 --> 00:03:58,520 how do we design the right form, to something much deeper, an 86 00:03:58,520 --> 00:04:01,840 ethical issue, an economic one, tied up with people's interests? 87 00:04:01,960 --> 00:04:03,320 It is. So we're not just talking about 88 00:04:03,320 --> 00:04:05,240 adding more red tape. We're talking about needing 89 00:04:05,240 --> 00:04:08,920 actual structural reforms, things that create real 90 00:04:08,920 --> 00:04:12,400 accountability, that force readiness, that demand honesty 91 00:04:12,720 --> 00:04:15,720 right when a property is listed. That's a much bigger challenge 92 00:04:15,720 --> 00:04:17,320 than just passing a new law, isn't? 93 00:04:17,320 --> 00:04:19,920 It it really is, we have to look at the incentives. 94 00:04:20,200 --> 00:04:23,600 Why does the market currently reward silence or let's be 95 00:04:23,600 --> 00:04:28,360 blunt, strategic half truths? As long as that's the case, any 96 00:04:28,360 --> 00:04:31,640 new documentation requirement, however well meaning, is likely 97 00:04:31,640 --> 00:04:35,960 to be well worked around or just fulfilled minimally. 98 00:04:36,120 --> 00:04:39,280 So we need to dig into how that culture of concealment actually 99 00:04:39,280 --> 00:04:42,920 works on the ground. Where does the evil, as one 100 00:04:42,920 --> 00:04:45,960 source puts it, really hide? Because that's what we're trying 101 00:04:45,960 --> 00:04:46,960 to root out. Precisely. 102 00:04:46,960 --> 00:04:49,640 Let's get into those specifics. OK, so let's shine a light into 103 00:04:49,640 --> 00:04:52,560 those murky corners. When surveyors talk about this 104 00:04:52,560 --> 00:04:55,280 culture of concealment, what are they actually finding? 105 00:04:55,280 --> 00:04:57,880 What's the hard evidence that shows someone actively tried to 106 00:04:57,880 --> 00:05:00,840 hide something rather than just, you know, forgetting to fix it? 107 00:05:01,000 --> 00:05:03,560 Oh the sources are quite detailed on this drawing from 108 00:05:03,560 --> 00:05:06,040 years of experience. It's like forensic work really 109 00:05:06,400 --> 00:05:10,240 looking for signs of intentional cover ups, not just neglect. 110 00:05:10,880 --> 00:05:13,480 So give us some examples. OK, think about damp. 111 00:05:13,720 --> 00:05:17,360 It's not just finding damp, it's finding a freshly painted wall, 112 00:05:17,560 --> 00:05:21,080 maybe using a specific type of paint like an oil based one 113 00:05:21,320 --> 00:05:23,160 right before the house goes on the market. 114 00:05:23,240 --> 00:05:26,800 Why oil based? Because oil based paint can hold 115 00:05:26,800 --> 00:05:30,960 back moisture for longer than standard emulsion, it masks the 116 00:05:30,960 --> 00:05:34,840 problem, stops the tell tale bubbling or peeling just long 117 00:05:34,840 --> 00:05:37,480 enough to get through viewings. Maybe even the initial survey 118 00:05:37,480 --> 00:05:40,280 checks, especially if it's applied strategically. 119 00:05:40,480 --> 00:05:43,800 Like slow down near the floor or behind where big furniture used 120 00:05:43,800 --> 00:05:44,960 to be. OK. 121 00:05:44,960 --> 00:05:47,640 So it's not just a quick refresh, it's a calculated move 122 00:05:47,960 --> 00:05:49,840 to buy time until the deal is done. 123 00:05:50,000 --> 00:05:51,720 Exactly. Or consider cracks. 124 00:05:51,720 --> 00:05:54,640 Surveyors find cracks that have been really carefully filled, 125 00:05:54,760 --> 00:05:57,520 maybe with something that isn't even structural filler, then 126 00:05:57,520 --> 00:06:00,120 sanded perfectly smooth and perhaps even covered with a 127 00:06:00,120 --> 00:06:02,160 special lining paper. Lining paper. 128 00:06:02,320 --> 00:06:05,960 Yeah, some types are designed to stretch slightly to absorb minor 129 00:06:05,960 --> 00:06:08,080 movements without tearing straight away. 130 00:06:08,200 --> 00:06:11,480 Again, it hides the underlying issue, makes it look solid for a 131 00:06:11,480 --> 00:06:14,240 crucial period. Clever in a dishonest way. 132 00:06:14,480 --> 00:06:16,400 What about roofs? You mentioned patching. 133 00:06:16,920 --> 00:06:19,560 Right, it's often not a totally derelict roof. 134 00:06:19,560 --> 00:06:22,040 That would be too obvious. It's more likely a temporary 135 00:06:22,040 --> 00:06:24,160 fix. A few tiles were placed here and 136 00:06:24,160 --> 00:06:26,400 there, maybe some cheap sealant slapped around a chimney, 137 00:06:26,400 --> 00:06:30,200 flashing just enough, as the source says, to pass a casual 138 00:06:30,200 --> 00:06:32,960 glance from the ground or a quick look out of an upstairs 139 00:06:32,960 --> 00:06:35,640 window. The aim is minimal effort for 140 00:06:35,640 --> 00:06:39,640 maximum deception, just enough to get past those early stages. 141 00:06:39,640 --> 00:06:42,880 That's the pattern deception through minimal temporary 142 00:06:42,880 --> 00:06:45,320 concealment. OK, so that explains the how. 143 00:06:46,040 --> 00:06:48,560 But why? Why are these kinds of defects 144 00:06:48,560 --> 00:06:50,680 maybe past damp treatments that failed? 145 00:06:51,080 --> 00:06:53,520 Signs of previous movement, those roof repairs? 146 00:06:53,640 --> 00:06:55,680 Why are they so rarely just mentioned upfront? 147 00:06:55,680 --> 00:06:57,840 Well, you have to look at how the system is set up, 148 00:06:57,920 --> 00:06:59,560 particularly around the state agents. 149 00:07:00,000 --> 00:07:03,120 Their primary goal, legally and commercially, is to get the best 150 00:07:03,120 --> 00:07:05,920 outcome for the seller. Speed and price are key. 151 00:07:06,120 --> 00:07:08,800 And disclosing problems doesn't help with speed or price. 152 00:07:08,920 --> 00:07:11,240 Generally, no. There is this operating 153 00:07:11,240 --> 00:07:14,360 assumption, often correct legally, that they don't have to 154 00:07:14,360 --> 00:07:17,240 disclose anything unless it's blindingly obvious or if the 155 00:07:17,240 --> 00:07:20,880 buyer specifically asks a direct question, and even then the 156 00:07:20,880 --> 00:07:25,000 answers can be cagey. So even if they fixed a damp 157 00:07:25,000 --> 00:07:28,320 issue properly five years ago, put in a whole new damp proof 158 00:07:28,320 --> 00:07:31,120 course with guarantees, they still might not mention it. 159 00:07:31,360 --> 00:07:35,400 Often, yes, because the very mention of damp, even historic 160 00:07:35,400 --> 00:07:39,120 and fixed, can immediately set off alarm bells for a buyer. 161 00:07:39,400 --> 00:07:41,880 It flags the property as potentially problematic. 162 00:07:41,880 --> 00:07:45,360 It introduces doubt. Exactly, there's a strong 163 00:07:45,360 --> 00:07:48,680 belief, A strategic calculation really among many agents and 164 00:07:48,680 --> 00:07:52,520 sellers that admitting any past issues, subsidence history may 165 00:07:52,520 --> 00:07:55,720 be flood risk in the area. Even a major roof overhaul years 166 00:07:55,720 --> 00:07:59,720 ago could quote, jeopardize a sale or lower the price, 167 00:07:59,760 --> 00:08:02,120 sometimes significantly. Because their job is to get the 168 00:08:02,120 --> 00:08:04,600 highest price for the seller. That's their fiduciary duty. 169 00:08:04,640 --> 00:08:06,440 Precisely. And in that very focused 170 00:08:06,440 --> 00:08:09,360 mindset, volunteering potentially negative information 171 00:08:09,360 --> 00:08:11,480 feels counterproductive to that core mission. 172 00:08:11,720 --> 00:08:14,520 Disclosure is seen as a risk, not a responsibility. 173 00:08:14,640 --> 00:08:18,240 OK, the motive is clear. Protect the sale price, avoid 174 00:08:18,240 --> 00:08:21,200 difficult negotiations. But hang on, if the problem is 175 00:08:21,200 --> 00:08:24,240 still there hiding under the paint or the patch, and a decent 176 00:08:24,240 --> 00:08:27,720 surveyor will find it eventually, what's the bigger 177 00:08:27,720 --> 00:08:29,880 risk they're actually running by hiding it? 178 00:08:29,880 --> 00:08:32,159 Doesn't this short term thinking backfire? 179 00:08:32,280 --> 00:08:34,679 Hugely. The risk they run by concealing 180 00:08:34,679 --> 00:08:38,640 significant issues is actually far greater than just getting a 181 00:08:38,640 --> 00:08:41,640 slightly lower offer. They risk the entire transaction 182 00:08:41,640 --> 00:08:43,440 collapsing. Right, the sale falls through. 183 00:08:43,600 --> 00:08:45,640 Exactly. They risk collapse chains, 184 00:08:45,840 --> 00:08:49,120 incredibly angry buyers who've wasted time and money, potential 185 00:08:49,120 --> 00:08:51,680 legal battles after completion if the issue comes to light 186 00:08:51,680 --> 00:08:56,200 then, and most commonly the deal simply fails late in the game. 187 00:08:56,360 --> 00:08:58,280 Talk us through that collapse scenario. 188 00:08:58,560 --> 00:09:02,400 Buyer gets their survey back. It flags 20,000 lbs of urgent 189 00:09:02,400 --> 00:09:03,760 roof repairs that weren't mentioned. 190 00:09:04,200 --> 00:09:06,600 They pull out. What's the real cost then? 191 00:09:06,600 --> 00:09:08,480 It's not just that one failed sale, is it? 192 00:09:08,800 --> 00:09:11,040 Not at all. The ripple effect is enormous. 193 00:09:11,040 --> 00:09:14,120 The buyer who pulls out, they've likely already spent hundreds, 194 00:09:14,120 --> 00:09:17,520 maybe thousands on legal fees, mortgage arrangement fees, the 195 00:09:17,520 --> 00:09:19,960 survey itself, perhaps even booking removals. 196 00:09:19,960 --> 00:09:21,560 They lose all that. And the seller. 197 00:09:21,760 --> 00:09:23,120 The seller is back to square one. 198 00:09:23,240 --> 00:09:27,160 They've lost weeks, maybe months of marketing time and often it 199 00:09:27,160 --> 00:09:30,280 triggers a chain reaction if they were buying somewhere else, 200 00:09:30,280 --> 00:09:32,640 relying on their sale. Their purchase falls through. 201 00:09:32,800 --> 00:09:35,200 And the people they were buying from might lose their onward 202 00:09:35,200 --> 00:09:36,960 purchase and so on down the line. 203 00:09:37,240 --> 00:09:40,640 Whole chains collapse because of 1 undisclosed issue. 204 00:09:40,960 --> 00:09:44,680 The total cost financially, emotionally, time wise across 205 00:09:44,680 --> 00:09:48,840 that entire chain usually dwarfs whatever saving the seller hope 206 00:09:48,840 --> 00:09:52,160 to make by hiding that 20,000 lbs repair in the first place. 207 00:09:52,200 --> 00:09:56,800 So the system by incentivizing non disclosure actually creates 208 00:09:57,000 --> 00:10:00,360 instability and cost. It seems almost parasitic 209 00:10:00,560 --> 00:10:03,040 feeding on these failed transactions that happened 210 00:10:03,200 --> 00:10:05,360 precisely because information was withheld. 211 00:10:05,920 --> 00:10:08,840 That's a strong way to put it. But yes, as the surveyor in the 212 00:10:08,840 --> 00:10:11,480 source material says, the evil is in the details, the things 213 00:10:11,480 --> 00:10:13,600 hidden away behind walls, under floors. 214 00:10:14,120 --> 00:10:16,960 It highlights the real problem is the systemic failure to 215 00:10:16,960 --> 00:10:18,760 disclose known maintenance issues. 216 00:10:19,120 --> 00:10:21,920 It's become normalized, this idea of selling a known problem 217 00:10:21,920 --> 00:10:23,600 onto someone else without telling them. 218 00:10:23,800 --> 00:10:25,800 Which raises a really fundamental question, doesn't 219 00:10:25,800 --> 00:10:28,000 it? If the agent's legal duty to the 220 00:10:28,000 --> 00:10:32,040 seller get the Max price is in direct conflict with the 221 00:10:32,040 --> 00:10:36,480 market's need for stability and transparency, is the current 222 00:10:36,480 --> 00:10:39,720 setup almost structurally unethical when you look at the 223 00:10:39,720 --> 00:10:42,280 bigger picture? That's the core tension, isn't 224 00:10:42,280 --> 00:10:45,040 it? The system as it stands often 225 00:10:45,040 --> 00:10:48,960 rewards silence, which might inflate initial asking prices 226 00:10:48,960 --> 00:10:51,760 but practically guarantees instability later on. 227 00:10:52,280 --> 00:10:54,960 We need a framework where transparency isn't seen as a 228 00:10:54,960 --> 00:10:58,920 weakness, but as the best way to achieve a solid, reliable sale. 229 00:10:59,360 --> 00:11:02,560 Transparency needs to align with the agent's goals, not oppose 230 00:11:02,560 --> 00:11:04,280 them. We should probably just briefly 231 00:11:04,280 --> 00:11:07,640 acknowledge the exception. The sources mentioned cases 232 00:11:07,640 --> 00:11:09,640 where maybe nobody genuinely knows the history. 233 00:11:09,640 --> 00:11:11,160 Yes, absolutely. It's important. 234 00:11:11,160 --> 00:11:13,800 To be fair, not every lack of information is deliberate 235 00:11:13,800 --> 00:11:16,280 concealment. Think about a probate sale, for 236 00:11:16,280 --> 00:11:19,000 example. A nephew selling his late aunt's 237 00:11:19,000 --> 00:11:22,480 house might genuinely have no idea about repairs done 15 years 238 00:11:22,480 --> 00:11:23,840 ago. He might only have visited 239 00:11:23,840 --> 00:11:26,280 occasionally. Or maybe a property that's been 240 00:11:26,280 --> 00:11:29,160 rented out for years or flipped quickly by an investor who never 241 00:11:29,160 --> 00:11:30,120 lived there. Right. 242 00:11:30,160 --> 00:11:33,640 There are situations where genuine ignorance exists, but 243 00:11:34,040 --> 00:11:36,320 let's be realistic. In the majority of sales 244 00:11:36,320 --> 00:11:39,000 involving owner occupiers who've lived there for a reasonable 245 00:11:39,000 --> 00:11:42,280 time, they do know the property's history, it's quirks, 246 00:11:42,280 --> 00:11:43,920 the repairs they've done or put off. 247 00:11:44,560 --> 00:11:47,440 In those cases, the decision not to disclose is usually 248 00:11:47,440 --> 00:11:49,520 strategic. OK, let's switch focus now to 249 00:11:49,520 --> 00:11:51,160 what the government is proposing today. 250 00:11:51,640 --> 00:11:54,840 They're coming forward with these plans, mandatory upfront 251 00:11:54,840 --> 00:11:58,120 info, binding contracts, and they're framing it as the way to 252 00:11:58,120 --> 00:12:02,240 quote and nasty surprises. So the obvious question is, why 253 00:12:02,240 --> 00:12:05,160 can't we just fix this with more rules, more paperwork? 254 00:12:05,640 --> 00:12:07,520 If it's mandatory, surely people have to. 255 00:12:07,520 --> 00:12:10,000 Comply. Well, this brings us right back 256 00:12:10,000 --> 00:12:12,640 to that paradox. Paperwork versus actual 257 00:12:12,640 --> 00:12:14,400 preparedness. We just talked about how the 258 00:12:14,400 --> 00:12:17,000 underlying culture often encourages finding ways around 259 00:12:17,000 --> 00:12:19,360 Full disclosure. So just adding more forms. 260 00:12:19,400 --> 00:12:21,600 Doesn't necessarily change the behavior. 261 00:12:21,920 --> 00:12:25,080 If the culture remains 1 of evasion, then more mandatory 262 00:12:25,080 --> 00:12:28,760 documents risk becoming just that, More documents easily 263 00:12:28,760 --> 00:12:31,280 faked perhaps, or filled out with generic unverified 264 00:12:31,280 --> 00:12:34,360 information. We saw exactly this with HI PS. 265 00:12:34,760 --> 00:12:37,360 There's a real danger these new requirements could just become 266 00:12:37,600 --> 00:12:40,720 HI PS2 point O. Another box ticking exercise. 267 00:12:40,720 --> 00:12:43,200 Pretty much. If the core incentive is still 268 00:12:43,200 --> 00:12:46,400 sell high, say little, then a new form is just another 269 00:12:46,400 --> 00:12:49,720 bureaucratic hurdle to navigate. Maybe the agent recommends a 270 00:12:49,720 --> 00:12:52,560 friendly surveyor who won't look too hard, or they use vague 271 00:12:52,560 --> 00:12:55,360 language. The form gets filled, compliance 272 00:12:55,360 --> 00:12:58,400 is achieved on paper, but has anything really changed? 273 00:12:58,560 --> 00:13:01,320 That's the weakness, isn't it? The sources argue pretty 274 00:13:01,320 --> 00:13:04,640 strongly that what's needed isn't just more forms, but forms 275 00:13:04,640 --> 00:13:07,560 containing genuine, verified information that actually has 276 00:13:07,560 --> 00:13:10,640 some legal standing information someone is accountable for. 277 00:13:10,720 --> 00:13:13,160 Exactly. We need truth embedded in the 278 00:13:13,160 --> 00:13:15,560 process, not just a checklist. Otherwise you could end up with 279 00:13:15,560 --> 00:13:18,920 sellers churning out cheap generic reports just to meet the 280 00:13:18,920 --> 00:13:21,200 requirement without any real substance. 281 00:13:21,440 --> 00:13:24,160 You know, I wonder about the psychological impact of that 282 00:13:24,160 --> 00:13:26,880 too. If you make paperwork mandatory, 283 00:13:27,040 --> 00:13:29,960 but everyone knows it's often low quality or easy to fudge, 284 00:13:30,320 --> 00:13:32,720 doesn't that make things even more confusing for the average 285 00:13:32,720 --> 00:13:34,200 buyer? They might think, oh, it's 286 00:13:34,200 --> 00:13:37,240 mandatory, it must be reliable. That's a real risk. 287 00:13:37,440 --> 00:13:39,600 It can create a false sense of security. 288 00:13:39,800 --> 00:13:42,960 A buyer gets this official looking pack of documents and 289 00:13:42,960 --> 00:13:44,800 thinks, great, they've done their homework. 290 00:13:44,800 --> 00:13:47,960 My risk is lower. But the documents might just be, 291 00:13:47,960 --> 00:13:50,560 you know, copies of old planning permissions that aren't relevant 292 00:13:50,560 --> 00:13:53,680 anymore, or unverified notes about maintenance. 293 00:13:53,680 --> 00:13:57,080 So the buyer relaxes, maybe doesn't scrutinize things as 294 00:13:57,080 --> 00:13:59,520 much. Potentially, and it means the 295 00:13:59,520 --> 00:14:02,600 real check, the buyers own survey, which usually happens 296 00:14:02,600 --> 00:14:05,840 quite late in the day, becomes this incredibly high stakes 297 00:14:05,840 --> 00:14:07,920 moment. It's less a confirmation of 298 00:14:07,920 --> 00:14:11,680 known facts and more like a last minute gamble to uncover hidden 299 00:14:11,680 --> 00:14:13,600 problems. And you can see the effect of 300 00:14:13,600 --> 00:14:16,560 all this missing or unreliable information when you look at the 301 00:14:16,560 --> 00:14:18,240 property market overall, can't you? 302 00:14:18,600 --> 00:14:22,760 The sources point to a real lack of cohesion, a lack of clarity 303 00:14:23,240 --> 00:14:25,600 that seems like proof the market doesn't trust the data it's 304 00:14:25,600 --> 00:14:27,160 working with. Absolutely. 305 00:14:27,160 --> 00:14:29,520 Look at the conflicting signals we often see. 306 00:14:29,720 --> 00:14:31,640 The sources mention this directly. 307 00:14:32,040 --> 00:14:35,000 Some lenders claim activity and prices are rising. 308 00:14:35,240 --> 00:14:38,440 Others say the opposite. Now, some fluctuation is normal, 309 00:14:38,440 --> 00:14:42,360 of course, but when you have such stark contradictions, it 310 00:14:42,360 --> 00:14:45,280 suggests something deeper. It points to different players 311 00:14:45,280 --> 00:14:50,000 in the market, lenders, agents, buyers, sellers, operating on 312 00:14:50,000 --> 00:14:52,960 completely different assumptions about the quality of the assets 313 00:14:52,960 --> 00:14:55,560 being traded and the level of risk involved. 314 00:14:55,640 --> 00:14:58,040 There's no shared trusted baseline. 315 00:14:58,120 --> 00:15:00,640 That level of market uncertainty is quite something. 316 00:15:00,640 --> 00:15:03,360 It's like everyone's trying to navigate using different maps 317 00:15:03,360 --> 00:15:06,200 drawn by people who all want a different destination. 318 00:15:07,000 --> 00:15:09,640 What does that uncertainty link back to the information problem? 319 00:15:09,640 --> 00:15:12,400 Well, uncertainty flourishes in a vacuum of reliable 320 00:15:12,400 --> 00:15:15,040 information, doesn't it? It thrives when transactions 321 00:15:15,040 --> 00:15:17,880 depend more on trust me than on verified facts. 322 00:15:18,080 --> 00:15:21,400 If every buyer implicitly knows, they're taking a punt on the 323 00:15:21,400 --> 00:15:22,800 hidden condition of the property. 324 00:15:22,840 --> 00:15:25,840 That risk has to go somewhere. It either gets priced in 325 00:15:25,840 --> 00:15:29,480 somehow, making things more expensive or volatile, or it 326 00:15:29,480 --> 00:15:33,480 simply puts people off. Risk averse buyers or lenders 327 00:15:33,480 --> 00:15:35,840 might just hesitate, slowing everything down. 328 00:15:36,160 --> 00:15:40,040 This inherent instability shows why just adding another layer of 329 00:15:40,040 --> 00:15:43,360 paperwork isn't enough. The market needs data it can 330 00:15:43,360 --> 00:15:45,680 actually trust, built in from the very beginning. 331 00:15:45,760 --> 00:15:47,600 And truly, this effects financing, too. 332 00:15:48,280 --> 00:15:51,400 If lenders suspect that property histories are often incomplete 333 00:15:51,400 --> 00:15:54,760 or hidden, they have to factor that unknown risk into their 334 00:15:54,760 --> 00:15:57,440 valuations, maybe into mortgage terms they offer. 335 00:15:57,440 --> 00:16:00,480 They absolutely do. That unknown history acts like a 336 00:16:00,480 --> 00:16:03,720 hidden discount or risk premium on almost every property, even 337 00:16:03,720 --> 00:16:04,960 the ones that are well maintained. 338 00:16:05,120 --> 00:16:07,400 Why? Because until that late stage 339 00:16:07,400 --> 00:16:10,160 survey, the lender often can't reliably tell the good from the 340 00:16:10,160 --> 00:16:12,000 bad. So the current system 341 00:16:12,040 --> 00:16:15,360 prioritizing speed over substance ends up creating this 342 00:16:15,360 --> 00:16:19,400 unstable, confusing market where ultimately the buyer carries the 343 00:16:19,400 --> 00:16:20,880 weight of all that unknown history. 344 00:16:20,920 --> 00:16:23,440 That's right, The solution can't just be another binder of 345 00:16:23,440 --> 00:16:25,160 papers. It has to be a system that 346 00:16:25,160 --> 00:16:29,560 delivers verifiable truth. OK, so if just hitting people 347 00:16:29,560 --> 00:16:33,720 with more rules and forms hasn't worked historically and probably 348 00:16:33,720 --> 00:16:37,200 won't work now. If mandatory forms just lead to 349 00:16:37,560 --> 00:16:42,600 grudging compliance, not genuine transparency, then we need that 350 00:16:42,600 --> 00:16:45,120 cultural shift you mentioned moving the market away from 351 00:16:45,120 --> 00:16:47,960 secrecy and last minute reactions towards preparation 352 00:16:47,960 --> 00:16:50,400 and openness. How do we even begin to make 353 00:16:50,400 --> 00:16:52,600 that happen? How do we make transparency the 354 00:16:52,600 --> 00:16:54,800 smart, maybe even profitable choice? 355 00:16:55,360 --> 00:16:58,160 The key I think is to fundamentally change when the 356 00:16:58,160 --> 00:17:00,640 detailed checks happen and who commissions them. 357 00:17:01,200 --> 00:17:03,800 We need to shift the main inspection from being a late 358 00:17:03,800 --> 00:17:06,319 stage reactive thing done by the buyer. 359 00:17:06,319 --> 00:17:08,079 Often when they're already emotionally and financially 360 00:17:08,079 --> 00:17:10,359 invested. Exactly, shift it to being an 361 00:17:10,359 --> 00:17:14,040 early stage proactive step taken by the seller as part of getting 362 00:17:14,040 --> 00:17:16,520 their property ready for market. The source material actually 363 00:17:16,520 --> 00:17:18,800 points to some initiatives already trying this, like the 364 00:17:18,800 --> 00:17:22,079 Survey All Baretti service. It gives us a practical example 365 00:17:22,079 --> 00:17:23,839 of what this preparation might look like. 366 00:17:24,079 --> 00:17:26,440 Right, let's unpack that Baretti idea as an example. 367 00:17:26,720 --> 00:17:29,120 What's involved? How does it actually work and 368 00:17:29,120 --> 00:17:31,120 what makes it different from, say, the old HIV? 369 00:17:32,120 --> 00:17:34,880 The big differences are timing and accountability. 370 00:17:35,720 --> 00:17:39,760 Barity is described as a digital preparation system driven by the 371 00:17:39,760 --> 00:17:43,120 seller before listing. It involves getting a proper 372 00:17:43,120 --> 00:17:47,080 professional health check, basically a survey done on the 373 00:17:47,080 --> 00:17:49,560 property right at the start. Before it even goes on Right 374 00:17:49,560 --> 00:17:52,880 move or Zoopla. Yes, and crucially, it's not 375 00:17:52,880 --> 00:17:55,880 just about getting an opinion, it's about gathering the 376 00:17:55,880 --> 00:17:58,560 essential verified documents. Things like warranties for 377 00:17:58,560 --> 00:18:01,320 recent work, planning permissions, building control 378 00:18:01,320 --> 00:18:05,280 certificates, and importantly, it specifically aims to identify 379 00:18:05,280 --> 00:18:08,720 any existing maintenance or condition issues early. 380 00:18:08,720 --> 00:18:11,280 OK, but hold on. If the seller pays for this 381 00:18:11,280 --> 00:18:14,520 upfront survey and document pack, if they're footing the 382 00:18:14,520 --> 00:18:17,840 bill, what stops them from just getting the report, seeing it 383 00:18:17,840 --> 00:18:21,680 flags an expensive problem, and then burying it or choosing a 384 00:18:21,680 --> 00:18:23,720 surveyor they know will give a gentle report? 385 00:18:23,760 --> 00:18:26,480 That's where the psychological and systemic shift comes in. 386 00:18:26,960 --> 00:18:29,560 By commissioning this detailed assessment upfront, the seller 387 00:18:29,560 --> 00:18:31,880 is making a conscious investment in transparency. 388 00:18:32,360 --> 00:18:35,120 Let's say the report comes back and says, look, the roof needs 389 00:18:35,120 --> 00:18:38,680 15,000 lbs of work. The seller now has a clear 390 00:18:38,680 --> 00:18:40,720 choice based on verified information. 391 00:18:40,920 --> 00:18:44,760 Option A Fix the roof properly before listing and then market 392 00:18:44,760 --> 00:18:48,280 the property as Baretti with proof of the repair, potentially 393 00:18:48,280 --> 00:18:52,240 at a higher price. Option B Don't fix the roof but 394 00:18:52,240 --> 00:18:55,720 disclose the issue clearly, provide the report findings and 395 00:18:55,720 --> 00:18:59,720 price the property competitively to reflect that £15,000 future 396 00:18:59,720 --> 00:19:02,080 cost for the buyer. What they can't easily do is 397 00:19:02,080 --> 00:19:03,760 pretend the problem doesn't exist. 398 00:19:03,800 --> 00:19:07,240 Exactly because the report exists, Ideally it's digitally 399 00:19:07,240 --> 00:19:09,120 logged and linked to the property listing. 400 00:19:09,400 --> 00:19:12,040 Concealment becomes much harder, much riskier. 401 00:19:12,200 --> 00:19:14,880 This is where it gets really interesting I think because it 402 00:19:14,880 --> 00:19:17,720 reframes the whole approach. It moves away from damage 403 00:19:17,720 --> 00:19:21,040 control, finding problems late and fighting about them towards 404 00:19:21,160 --> 00:19:24,360 honesty as a strategy. What are the knock on benefits 405 00:19:24,360 --> 00:19:27,600 if sellers actually do this preparation properly for them 406 00:19:27,600 --> 00:19:30,200 and for buyers? The benefits could be huge and 407 00:19:30,200 --> 00:19:32,160 system wide. For sellers, doing this 408 00:19:32,160 --> 00:19:35,320 preparation means they identify and deal with potential deal 409 00:19:35,320 --> 00:19:36,840 Breakers before they find a buyer. 410 00:19:37,120 --> 00:19:40,240 Fewer nasty surprises popping up in Month 3 means their sale is 411 00:19:40,240 --> 00:19:42,880 much more likely to proceed smoothly to completion. 412 00:19:42,960 --> 00:19:46,760 More certainty for them, less stress maybe helps their onward 413 00:19:46,760 --> 00:19:48,640 chain stay intact. Precisely. 414 00:19:49,040 --> 00:19:51,680 And for buyers, the gain is massive. 415 00:19:51,960 --> 00:19:55,080 They get crucial verified information about the property's 416 00:19:55,080 --> 00:19:58,080 condition right at the start, maybe even before they view it. 417 00:19:58,320 --> 00:20:01,040 They can see the survey summary, the key documents. 418 00:20:01,320 --> 00:20:04,280 It allows them to calculate the true cost of buying that 419 00:20:04,280 --> 00:20:07,520 specific property much earlier. So they can make a more informed 420 00:20:07,520 --> 00:20:12,000 decision faster, maybe with fewer rounds of painful price 421 00:20:12,000 --> 00:20:14,600 renegotiation based on survey findings. 422 00:20:14,600 --> 00:20:16,760 Exactly. The whole full philosophy shifts 423 00:20:17,240 --> 00:20:21,600 transparency, builds trust, and trust leads to more stable, 424 00:20:21,600 --> 00:20:25,000 faster transactions that should benefit everyone involved in the 425 00:20:25,000 --> 00:20:27,240 long run. And this ties back powerfully to 426 00:20:27,240 --> 00:20:29,840 that ethical point about responsible ownership, doesn't 427 00:20:29,840 --> 00:20:31,240 it? If I know I'll have to be 428 00:20:31,240 --> 00:20:34,040 upfront about the state of my property when I sell, I have a 429 00:20:34,040 --> 00:20:36,760 much stronger incentive to actually look after it while I 430 00:20:36,760 --> 00:20:38,280 live. There, that's a key potential 431 00:20:38,280 --> 00:20:40,720 outcome. The sources make a really strong 432 00:20:40,720 --> 00:20:44,000 case for fairness here. Why should sellers, as one puts 433 00:20:44,000 --> 00:20:47,320 it, expect a windfall simply for owning a property that's been 434 00:20:47,320 --> 00:20:49,080 neglected for years? Good question. 435 00:20:49,440 --> 00:20:53,400 If you're selling an asset and you know it has significant 436 00:20:53,400 --> 00:20:57,920 deferred maintenance, maybe the chimney needs repointing, the 437 00:20:57,920 --> 00:21:00,720 wiring is ancient, the drains are dodgy. 438 00:21:01,040 --> 00:21:03,440 The price should honestly reflect that reality. 439 00:21:03,440 --> 00:21:06,680 The market needs to stop implicitly allowing sellers to 440 00:21:06,680 --> 00:21:10,320 profit from their own neglect by passing the buck, often 441 00:21:10,320 --> 00:21:13,920 sneakily, to the next owner. So what sort of maintenance are 442 00:21:13,920 --> 00:21:15,800 we talking about here? What defines responsible 443 00:21:15,800 --> 00:21:18,720 ownership in this context, beyond just, you know, slapping 444 00:21:18,720 --> 00:21:21,960 paint over BAMP patches? What are the big things that 445 00:21:21,960 --> 00:21:25,120 should be assessed and accounted for in this kind of upfront 446 00:21:25,120 --> 00:21:27,320 preparation? It's the core stuff really, the 447 00:21:27,320 --> 00:21:30,160 things that are costly to fix and often hidden from casual 448 00:21:30,160 --> 00:21:32,800 view. The sources list things like the 449 00:21:32,800 --> 00:21:35,320 main roof structure, its condition, it's likely lifespan, 450 00:21:35,440 --> 00:21:38,000 chimneys and their lead flesh and common sources of leaks. 451 00:21:38,200 --> 00:21:39,920 Damp proofing systems, are they present? 452 00:21:39,920 --> 00:21:42,640 Are they working? Windows, especially older double 453 00:21:42,640 --> 00:21:44,360 glazing units where the seals intact. 454 00:21:44,360 --> 00:21:47,120 And critically, the big systems, The electrics, are they modern? 455 00:21:47,120 --> 00:21:49,480 Are they certified? The boiler and heating system, 456 00:21:49,480 --> 00:21:51,800 has it been regularly serviced? Is it efficient? 457 00:21:52,000 --> 00:21:55,480 These are all potentially big ticket repair items down the 458 00:21:55,480 --> 00:21:57,120 line for a buyer. Exactly. 459 00:21:57,440 --> 00:21:59,680 And if they've been ignored by the current owner, they 460 00:21:59,680 --> 00:22:02,160 represent significant hidden liabilities. 461 00:22:02,240 --> 00:22:04,800 Liabilities that under the current system often get 462 00:22:04,800 --> 00:22:06,960 transferred unknowingly to the buyer. 463 00:22:07,360 --> 00:22:10,840 So the cultural shift requires the seller to face these issues 464 00:22:10,840 --> 00:22:11,960 head on. Yes. 465 00:22:12,640 --> 00:22:15,920 Either invest in fixing them before listing to justify a 466 00:22:15,920 --> 00:22:19,360 higher asking price, or be completely transparent about 467 00:22:19,360 --> 00:22:22,000 them, provide the evidence and adjust the price accordingly 468 00:22:22,000 --> 00:22:23,840 before a buyer even gets involved. 469 00:22:24,120 --> 00:22:26,520 It makes the seller responsible for the condition they're 470 00:22:26,520 --> 00:22:29,400 presenting, rather than making the buyer the unwitting 471 00:22:29,400 --> 00:22:31,640 inheritor of past neglect. Right. 472 00:22:31,640 --> 00:22:33,760 So we've established the cultural shift needed from 473 00:22:33,760 --> 00:22:36,800 reaction to preparation. But culture change often needs a 474 00:22:36,800 --> 00:22:40,000 push from structural reform. If we want to move beyond just 475 00:22:40,000 --> 00:22:43,320 hoping sellers do the right thing, what concrete changes are 476 00:22:43,320 --> 00:22:45,920 needed? We need a blueprint really, that 477 00:22:46,160 --> 00:22:48,480 embeds accountability and readiness into the system 478 00:22:48,480 --> 00:22:50,840 itself, not just relying on goodwill. 479 00:22:51,080 --> 00:22:53,280 Absolutely. If we're serious about mandating 480 00:22:53,280 --> 00:22:56,880 better information, we have to be serious about verifying it 481 00:22:56,920 --> 00:22:59,240 and making sure it's actually used effectively throughout the 482 00:22:59,240 --> 00:23:01,680 process. The sources sketch out a pretty 483 00:23:01,680 --> 00:23:04,920 clear framework for this, which we can break down into maybe 484 00:23:04,920 --> 00:23:07,200 three key categories. The first is all about 485 00:23:07,440 --> 00:23:10,040 information quality and verification. 486 00:23:10,120 --> 00:23:13,360 OK, Category 1, making sure the data is actually good. 487 00:23:13,520 --> 00:23:15,160 What did that involve specifically? 488 00:23:15,400 --> 00:23:19,560 Well first and foremost it means mandatory pre sale property 489 00:23:19,560 --> 00:23:23,400 condition assessments. But, and this is crucial, they 490 00:23:23,400 --> 00:23:27,880 must be done by properly qualified independent surveyors, 491 00:23:28,160 --> 00:23:31,240 people who are professionally liable for the accuracy of what 492 00:23:31,240 --> 00:23:33,880 they report. This happens before listing as a 493 00:23:33,880 --> 00:23:36,360 requirement. Yes, a prerequisite for putting 494 00:23:36,360 --> 00:23:39,120 the property on the market, not just an option the seller might 495 00:23:39,120 --> 00:23:41,040 choose. But if the seller commissions 496 00:23:41,040 --> 00:23:43,040 them, how do you guarantee independence? 497 00:23:43,320 --> 00:23:45,960 How do you ensure the surveyor isn't just telling the seller 498 00:23:45,960 --> 00:23:48,280 what they want to hear? That's where the regulatory 499 00:23:48,280 --> 00:23:51,160 structure is vital. The surveyors professional 500 00:23:51,160 --> 00:23:54,560 liability has to extend beyond just the seller who paid them. 501 00:23:54,760 --> 00:23:58,160 It needs to cover the eventual buyer to the report. 502 00:23:58,160 --> 00:24:02,320 Format needs to be standardized, focused on factual evidence, not 503 00:24:02,320 --> 00:24:05,360 just subjective opinion. OK, liability is key. 504 00:24:05,680 --> 00:24:09,040 What else for category one? Secondly, verified digital log 505 00:24:09,040 --> 00:24:12,080 books for properties. Think of it like a secure, maybe 506 00:24:12,080 --> 00:24:15,040 blockchain based digital record linked to the properties 507 00:24:15,040 --> 00:24:16,840 address. A property, passport almost. 508 00:24:16,960 --> 00:24:18,800 Kind of. It would hold the verified 509 00:24:18,800 --> 00:24:21,640 history, copies of warranties for work done, planning 510 00:24:21,640 --> 00:24:24,840 permissions, building control sign offs, maybe major 511 00:24:24,840 --> 00:24:27,720 maintenance records. It creates a single, hard to 512 00:24:27,720 --> 00:24:30,240 falsify source of truth about the building's history. 513 00:24:30,280 --> 00:24:32,560 That sounds powerful. It directly tackles that 514 00:24:32,560 --> 00:24:34,360 concealment issue we talked about earlier. 515 00:24:34,840 --> 00:24:38,160 If major work like damp poofing requires a certificate and that 516 00:24:38,160 --> 00:24:39,640 certificate must go in the log book. 517 00:24:39,840 --> 00:24:41,920 It becomes much harder to hide the history. 518 00:24:42,000 --> 00:24:44,160 It builds an indelible record over time. 519 00:24:44,680 --> 00:24:47,680 Then, linked to that, we need nationwide standardization of 520 00:24:47,680 --> 00:24:49,800 what constitutes material information. 521 00:24:50,000 --> 00:24:52,440 Defining what sellers must disclose, not just what they 522 00:24:52,440 --> 00:24:55,760 feel like mentioning. Exactly a clear, legally defined 523 00:24:55,760 --> 00:24:58,000 set of things a buyer has a right to know upfront. 524 00:24:58,440 --> 00:25:02,240 And finally, in this category that verified data, the summary 525 00:25:02,240 --> 00:25:05,200 from the condition assessment key facts from the log book 526 00:25:05,200 --> 00:25:08,120 needs to be integrated directly into the property listings 527 00:25:08,120 --> 00:25:10,080 themselves. So when you're browsing online, 528 00:25:10,080 --> 00:25:12,880 you see the condition summary alongside the photos and floor 529 00:25:12,880 --> 00:25:15,880 plan. Wow, OK, that really shifts the 530 00:25:15,880 --> 00:25:18,880 survey from being this late stage bombshell into being part 531 00:25:18,880 --> 00:25:21,400 of the property's fundamental identity from day one. 532 00:25:22,000 --> 00:25:25,560 Huge implications for liability and how people value properties, 533 00:25:26,200 --> 00:25:27,360 right? Let's move to category 2, 534 00:25:27,760 --> 00:25:30,120 Professional Accountability and Incentives. 535 00:25:30,320 --> 00:25:32,520 Yeah. This focuses on the key people 536 00:25:32,520 --> 00:25:35,960 managing the transaction, the estate agents, the conveyancers. 537 00:25:36,240 --> 00:25:38,240 We need much stronger enforcement of their 538 00:25:38,240 --> 00:25:41,440 qualifications, yes, but also regulatory oversight that 539 00:25:41,440 --> 00:25:44,760 genuinely holds them accountable for facilitating transparency, 540 00:25:45,000 --> 00:25:48,280 not hindering it. So consequences if an agent is 541 00:25:48,280 --> 00:25:51,360 found to be knowingly marketing a property where defects have 542 00:25:51,360 --> 00:25:53,360 been actively hidden. There has to be. 543 00:25:54,040 --> 00:25:57,040 Alongside that, we need to tackle the incentive structures. 544 00:25:57,480 --> 00:26:00,600 The sources specifically mentioned the need to reduce or 545 00:26:00,600 --> 00:26:03,720 eliminate referral fees between agents and solicitors or 546 00:26:03,720 --> 00:26:06,160 financial advisors. Ah, the kickbacks. 547 00:26:06,440 --> 00:26:08,680 Why are those so problematic for transparency? 548 00:26:09,040 --> 00:26:11,280 Because they create a clear conflict of interest. 549 00:26:11,760 --> 00:26:15,120 Is the agent recommending that particular solicitor because 550 00:26:15,120 --> 00:26:18,160 they're the best, the most diligent, or because that 551 00:26:18,160 --> 00:26:21,920 solicitor pays the agent a fee for every client sent their way? 552 00:26:22,320 --> 00:26:24,840 Right. It incentivizes loyalty to the 553 00:26:24,840 --> 00:26:26,880 refer, not necessarily the client. 554 00:26:27,160 --> 00:26:29,880 Precisely. It encourages speed and volume 555 00:26:29,880 --> 00:26:32,560 over thoroughness. If a solicitor relies on an 556 00:26:32,560 --> 00:26:34,880 agent for business, they might be less inclined to raise 557 00:26:34,880 --> 00:26:37,800 difficult questions about missing paperwork or push hard 558 00:26:37,800 --> 00:26:41,040 for Full disclosure if it risks upsetting the agent or slowing 559 00:26:41,040 --> 00:26:43,680 down the deal. Removing those kickbacks helps 560 00:26:43,680 --> 00:26:46,560 ensure everyone's focused purely on their clients best interest 561 00:26:46,560 --> 00:26:48,120 and the integrity of the transaction. 562 00:26:48,320 --> 00:26:50,280 It's about breaking those financial links that reward 563 00:26:50,280 --> 00:26:53,360 opacity and just getting the deal done quickly regardless of 564 00:26:53,360 --> 00:26:56,520 the details. Yes, and this category also 565 00:26:56,520 --> 00:26:59,120 reinforces the point about encouraging sellers to do that 566 00:26:59,120 --> 00:27:01,760 pre sale maintenance. If a verified condition 567 00:27:01,760 --> 00:27:05,040 assessment is mandatory before listing, sellers have a direct 568 00:27:05,040 --> 00:27:08,360 financial incentive to fix problems before the assessment 569 00:27:08,360 --> 00:27:11,080 happens to get a better report and potentially a better price. 570 00:27:11,320 --> 00:27:14,120 It forces them to confront the state of their asset. 571 00:27:14,280 --> 00:27:16,640 It stops them just quietly passing the cost of their 572 00:27:16,640 --> 00:27:21,120 neglect on to the buyer. OK, final category, Category 3, 573 00:27:21,560 --> 00:27:25,240 system integration and security. How do we make all these pieces, 574 00:27:25,240 --> 00:27:28,000 the verified data, the accountable professionals, 575 00:27:28,160 --> 00:27:30,200 actually work together smoothly and securely? 576 00:27:30,400 --> 00:27:33,280 This is where we really need to modernize the whole transaction 577 00:27:33,280 --> 00:27:35,960 process using technology for security. 578 00:27:35,960 --> 00:27:39,040 We need things like a verified national system for digital ID 579 00:27:39,040 --> 00:27:41,840 checks, making sure everyone involved, buyers, sellers, 580 00:27:41,840 --> 00:27:44,480 agents, is genuinely who they say they are right from the 581 00:27:44,480 --> 00:27:46,440 start. That helps tackle fraud. 582 00:27:46,440 --> 00:27:49,200 Smoother onboarding, less paper chasing for ID. 583 00:27:49,320 --> 00:27:51,440 Exactly. But the integration part is 584 00:27:51,440 --> 00:27:55,080 about breaking down the silos. We need to foster, maybe even 585 00:27:55,080 --> 00:27:58,360 mandate genuine collaboration between the key players, 586 00:27:58,760 --> 00:28:02,320 Surveyors, conveyancers, agents. They should all be working from 587 00:28:02,320 --> 00:28:05,960 the same verified information, the log book data, the condition 588 00:28:05,960 --> 00:28:07,800 assessment right from day one, not. 589 00:28:07,800 --> 00:28:10,960 Operating in separate bubbles where information gets lost or 590 00:28:10,960 --> 00:28:12,720 misinterpreted between steps. Right. 591 00:28:12,920 --> 00:28:16,080 Imagine a secure digital platform where the verified data 592 00:28:16,080 --> 00:28:18,800 is shared instantly and transparently between all the 593 00:28:18,800 --> 00:28:21,240 necessary parties as soon as the seller decides to list 594 00:28:21,440 --> 00:28:23,080 everyone's singing from the same hymn sheet. 595 00:28:23,400 --> 00:28:24,600 OK. So if you have that 596 00:28:24,600 --> 00:28:28,840 collaboration built on verified data right from the start, how 597 00:28:28,840 --> 00:28:31,320 did that connect to the idea of making contracts binding 598 00:28:31,320 --> 00:28:33,400 earlier? It provides the foundation that 599 00:28:33,400 --> 00:28:35,800 could actually make early binding agreements work, unlike 600 00:28:35,800 --> 00:28:38,360 previous attempts. The idea would be to promote 601 00:28:38,360 --> 00:28:41,800 binding agreements only after that verified data pack the 602 00:28:41,800 --> 00:28:44,320 condition report. The logbook info has been shared 603 00:28:44,320 --> 00:28:46,880 and formally accepted by both the buyer and seller. 604 00:28:47,080 --> 00:28:50,480 So the contract isn't just based on the asking price, it's 605 00:28:50,480 --> 00:28:54,720 explicitly tied to the verified condition in history documented 606 00:28:54,720 --> 00:28:58,240 in that upfront pack. Precisely the integrity of the 607 00:28:58,240 --> 00:29:00,960 contract becomes directly linked to the integrity of the 608 00:29:00,960 --> 00:29:04,040 disclosed data. If it later turns out the seller 609 00:29:04,040 --> 00:29:07,240 significantly misrepresented something in that data pack, the 610 00:29:07,240 --> 00:29:10,040 contract could be void and penalties could alley. 611 00:29:10,520 --> 00:29:13,880 This massively reduces the risk of deals collapsing late in the 612 00:29:13,880 --> 00:29:17,240 day over unexpensive survey results because the condition is 613 00:29:17,240 --> 00:29:20,760 known and agreed upon before the contract becomes truly binding. 614 00:29:20,760 --> 00:29:23,360 It fundamentally shifts the transaction from being based on 615 00:29:23,360 --> 00:29:27,480 trust and hope to being based on verified, agreed upon facts. 616 00:29:27,480 --> 00:29:29,880 That's the goal. And that structural change, 617 00:29:29,880 --> 00:29:32,640 linking legal commitment directly to verified data, is 618 00:29:32,640 --> 00:29:35,560 the crucial difference between this kind of proposal and the 619 00:29:35,600 --> 00:29:39,080 old failed HI PS model. It's not just about having a 620 00:29:39,080 --> 00:29:41,680 form, it's about making the information on that form 621 00:29:41,760 --> 00:29:44,720 meaningful, enforceable, and central to the deal itself. 622 00:29:44,720 --> 00:29:46,320 Making the paperwork actually count. 623 00:29:46,400 --> 00:29:49,320 Exactly making it the bedrock of the transactions integrity. 624 00:29:49,560 --> 00:29:53,560 So pulling all this together from our deep dive today, yes, 625 00:29:53,600 --> 00:29:56,520 reforms that demand upfront information are welcome in 626 00:29:56,520 --> 00:29:59,840 principle, but as we've seen, especially learning from the 627 00:29:59,840 --> 00:30:04,960 HIPS fiasco, they absolutely cannot be just another layer of 628 00:30:04,960 --> 00:30:07,440 tick box bureaucracy that gets easily sidestepped. 629 00:30:07,440 --> 00:30:09,840 No, they have to go deeper. They need to fundamentally 630 00:30:09,840 --> 00:30:13,920 change the ingrained habits, the incentives that currently favor 631 00:30:13,920 --> 00:30:17,560 concealment over transparency. The system needs more than just 632 00:30:17,560 --> 00:30:20,240 new rules on paper. It needs, as the source of 633 00:30:20,240 --> 00:30:24,200 stress, enforced accountability, readiness and honesty. 634 00:30:24,600 --> 00:30:27,600 And that seems to rely heavily on verified digital information 635 00:30:27,760 --> 00:30:30,720 and real collaboration between everyone involved. 636 00:30:30,840 --> 00:30:33,560 And until that cultural and structural shift really happens, 637 00:30:33,560 --> 00:30:35,880 well, surveyors are going to keep finding those nasty 638 00:30:35,880 --> 00:30:38,160 surprises that should have been declared right from the start. 639 00:30:38,240 --> 00:30:40,560 Which leaves us with a really important question for you, the 640 00:30:40,560 --> 00:30:43,000 listener, to think about after this discussion. 641 00:30:43,280 --> 00:30:45,760 Yes. Consider this if we actually 642 00:30:45,760 --> 00:30:49,520 succeed in making accountability for property condition mandatory 643 00:30:49,520 --> 00:30:53,800 before listing, if sellers truly have to either fix major issues 644 00:30:53,800 --> 00:30:57,440 upfront or clearly disclose them and accept a lower price 645 00:30:57,440 --> 00:31:00,560 reflecting those costs, how would that fundamentally change 646 00:31:00,560 --> 00:31:04,280 the way we value houses? Would it shift the perceived 647 00:31:04,280 --> 00:31:07,320 intrinsic value of properties across the entire market? 648 00:31:07,320 --> 00:31:10,040 Think about it. Would it mean that significant 649 00:31:10,040 --> 00:31:12,840 wealth, currently represented by the hidden cost of deferred 650 00:31:12,840 --> 00:31:17,480 maintenance, gets shifted away from future buyers, unknowingly 651 00:31:17,480 --> 00:31:21,200 absorb it now and back onto the current owners, forcing them to 652 00:31:21,200 --> 00:31:22,880 account for the true state of their asset? 653 00:31:23,040 --> 00:31:25,720 What are the massive economic consequences if the housing 654 00:31:25,720 --> 00:31:28,480 market genuinely operated on principles of fairness and 655 00:31:28,480 --> 00:31:31,360 mandated transparency? Who wins and who loses when 656 00:31:31,360 --> 00:31:34,200 years of neglect can no longer be quietly passed on? 657 00:31:34,360 --> 00:31:35,880 The whole dynamic changes, doesn't it? 658 00:31:35,880 --> 00:31:39,320 When you move from buyer beware to seller must verifiably 659 00:31:39,320 --> 00:31:41,360 declare. It's a huge potential shift in 660 00:31:41,360 --> 00:31:44,320 economics and responsibility. Definitely something worth 661 00:31:44,320 --> 00:31:45,040 mulling over.