Scottish Property News

Cost of Home Reports sparks fresh debate

The fee for the reports - between £500 to £700 plus VAT - will assess a property's value, environmental impact and energy efficiency and provide information for buyers. They will be compulsory for all sellers after December 1.

But critics last night claimed the new system would put the fiasco which surrounded Home Information Packs, introduced in England and Wales on December 17 last year, into the shade.

In a separate move, the Scottish Law Agents Society, which represents solicitors buying and selling properties, will today publish a booklet attacking Home Reports as "not fit for purpose", claiming the Scottish Government has concealed the risk they will pose to the housing market.

Graeme Hartley, Rics Scotland director, said: "Figures quoted previously relate to very early estimates before the full details of the Home Report, and therefore all requirements and extent of the work involved for our members, were fully established.

"The guide of £500 to £700, which relates to carrying out the single survey, valuation and energy report for an average property in an average condition, has been reached following consultation and in-depth discussion with our members to provide sellers with some guidance as we all prepare for implementation on December 1, 2008."

A Scottish Government spokeswoman said: "Far from damaging the market, the Home Report will help hard-pressed first-time buyers by cutting the costs of bidding for a house. December 1 was chosen on advice from lenders and selling agents as the best time to transfer to the new system, and we are proceeding on that basis.

"There is a glut of houses already on the market and other houses coming on to the market before December 1 will not require a Home Report. Any temporary effect on the supply of houses will be insignificant compared to this glut."

'Get expert advice'

For Sarah O'Neill, Legal Officer Scottish Consumer Council

At the moment, most of us buy our home on the basis of too little information. Many people end up paying out for unexpected repairs soon after they buy. Some solicitors encourage buyers to put in an "offer subject to survey" with no independent information on the value or condition of the property.

As The Herald reported yesterday, Scotland is bucking the trend and house prices are still increasing. When it's harder to get a mortgage, however, you want to be surer than ever that the property you are buying is sound and represents a good investment. A detailed home report, compiled by a professional property expert, is essential when you are making the biggest purchase of your life. The report will be provided free of charge to potential buyers.

Most sellers are also buyers at the same time, and will only be expected to pay for a report on the house they are selling rather than for a survey on each property they'd like to offer for.

'Not fit for purpose'

Against Ian C Ferguson Spokesman for Scottish Law Agents Society

The time taken to sell property has increased hugely because of the credit crunch. Often houses now take months to sell and prices are declining. Asking sellers to pay for Home Reports up-front will result in some prospective sellers not bringing their property to the market so causing further loss of confidence. There should be a delay in the implementation of Home Reports at least until market conditions improve.

The Scottish Housing market is a powerful driver of the Scottish economy and when houses are not being purchased, employers in the industry have to lay off staff and tradesmen suffer as there are no new house purchasers to employ them. Paradoxically, this leads to decline in the condition of the housing stock, the improvement of which is said to be an objective of the Home Reports regime.

The "single survey" is not fit for purpose as it is structurally and fundamentally flawed.

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