Scottish Property News

Lawyers want introduction of home reports to be delayed

The Scottish Government says all houses for sale will have to be marketed with a home report - which includes a single survey, an energy report and a questionnaire - from December.

Communities Minister Stewart Maxwell says it will provide "full and proper information" and will bring stability to the housing market.

The report has the support of a number of influential bodies, including the Royal Institution of Chartered Surveyors (Rics) in Scotland and the Scottish Consumers' Council. Rics has said the cost of the new single-survey system will average between £585 and £820.

However, the Scottish Law Agents Society (SLAS) is opposed to the report and has called for its introduction to be postponed for two years in light of the economic climate. Yesterday, at a special meeting of the Law Society of Scotland, a motion in favour of postponing the introduction was backed by 2052 solicitors, to 52 against.

The vote appears to be in vain as the Scottish Government yesterday said it was sticking to the implementation date of December 1. Following the vote, Janette Wilson, convener of the Law Society of Scotland's conveyancing committee, said: "We recently asked the Scottish Government to postpone the introduction of home reports because of our concerns for the house buying and selling public in light of the current economic climate. Change at a difficult time in the property market could cause even further slowdown."

Ms Wilson said the society had a number of concerns about the single survey being included as part of the home report, including the survey's shelf life. She said any property survey may not be viable after a few weeks and sellers may have to buy two or more surveys to ensure that the report was still relevant.

She said it was also possible buyers may have to commission their own surveys to satisfy lenders, particularly during a downturn, or in those areas of the country where properties take longer to sell.

Ms Wilson said the home report could also have a detrimental impact on people who are struggling to keep up payments and are forced into selling their homes, as well as first-time sellers. Professor Lorne Crerar, one of the original architects of Home Report as chairman of the sub-group of the Housing Improvement Task Force that recommended the single survey, yesterday said the report represented a "very significant improvement" on the house buying and selling system.

Professor Crerar, chairman of Harper Macleod solicitors, said: "It provides meaningful information to customers and gets rid of multiple valuations and the unpleasant process of advertising property at artificially low prices, encouraging viewers who have little or no prospect of purchase.

"The principle reason why the SLAS sought to have their members oppose the Scottish Government's proposals is supposed to be based on consumer interest.

"The custodian of the consumers' interest is the Scottish Consumer Council which supports the introduction of the home report."

A Scottish Government spokesman said arguments put forward for the home report's introduction had been carefully considered.

He added: "Scotland is not immune from the effects of the global economic downturn. That is why it is essential that those buying a house receive the best advice possible.

"By reducing costs for buyers, particularly first-time buyers, the home report has the potential to help stimulate the property market."

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