The controversial compulsory home report scheme, launched by the Scottish Government two years ago, is not helping the country’s housing market, according to the Law Society of Scotland.
In calling for an end to the single survey required by home reports, the society is echoing a Tayside property expert’s repeated pleas for the Scottish Government to ditch the scheme and so boost the country’s “stagnating” housing market.
Lindsay Darroch, head of property services at Blackadders, has been a vociferous opponent of the home report scheme, which requires every seller to obtain a survey and energy report and complete a property questionnaire before putting a house on the market.
Now the Law Society has agreed that despite containing useful information for property buyers, home reports are not helping sales.
It acknowledged that a number of solicitors said the home report was a useful marketing tool which provided helpful information for prospective purchasers at minimal or no cost however it maintains that there are problems with the scheme, some of which are undermining the confidence of participants and adversely affecting the conveyancing system.
Janette Wilson, convener of the Law Society of Scotland’s conveyancing committee, said, “Solicitors are integral to the whole buying and selling process in Scotland and, from the feedback we’ve received from our members, it is apparent that some of the objectives of the system have not been met-namely the improvement of the quality of housing stock and elimination of multiple surveys.
She adde, “We think that removing the mandatory requirement for all sellers to include a single survey in the home report, and instead making it a voluntary feature, would markedly improve the situation in the Scottish property market.”
Mr Darroch said, “The Scottish Government should scrap the home report with immediate effect and the UK Government should implement a programme of assistance for the housing market and in particular first-time buyers.”Lending downHe pointed to reports last month’s mortgage lending was at its lowest level since 2000 and 18% lower than December 2009.
However, Perthshire Solicitors’ Property Centre chairman Alastair Anderson said the society submission did not tally with his experience.
He said, “I don’t think the negatives they list are sufficiently strong to convince the government to make a change and withdraw them.
“Our position is that whilst there are certain aspects we don’t like, and definitely it’s an expense some people find very difficult to bear, there are a lot of positives in the home reporting system and they are not outweighed by the negatives phrased by the Law Society.
“Sometimes different cities have different views. From our point of view, we have a small number of surveyors and, with their good local reputation, people are happier to accept their reports.”A Fife property agency has said home reports caused a “slowing of the market.”
Matthew Gray, property sales director for Pagan Osborne, said, “The original purpose for the home report was to bring greater clarity to the buying and selling process but, now that they are in place, many anomalies have appeared which have led to a slowing down of the market in certain areas of Fife.”
He added, “Valuations have become quite confusing, especially when there is a discrepancy between two separate surveys, and while many banks still insist on another valuation before agreeing a mortgage, the process will be subject to delays.”
“Having said that, the home reports often focus attention on the need for repairs and maintenance that many sellers act upon. This does bring a level of comfort and confidence for the buyer, and that is a good thing.
“A home marketed at a realistic price has a better chance of selling, particularly if the property is presented to the market in reasonable condition,” he added.
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