Bodies representing estate agents and lenders joined forces last night to call for urgent reform of the current Home Report system.
Home reports were introduced five years ago replacing the traditional property survey as the property market began to go into decline. The cost of a Scottish Home Report is £480 and the report includes a mortgage valuation that must be updated every 12 weeks.
The National Association of Estate Agents in Scotland (NAEAS) and the Council of Mortgage Lenders (CML) agree the reports, which require a revaluation every three months, are putting off would-be sellers.
David Mackie, NAEAS’s head, said: “It took five years from when they first dreamed it up to when it was finally implemented, by which time the market had become quite weak.
“It’s ideal for a fast-flowing market, but when the market is sluggish and you never know what house prices are going to do from one month to the next it doesn’t work. It reduces the number of properties coming onto the market.”
He added that in the present market circumstances, sellers are not prepared to pay hundreds of pounds up front to put their house up for sale.
Kennedy Foster, CML Scotland policy consultant, said: “The Home Report was designed for a buoyant housing market – clearly not what we’re in now. There definitely needs to be a review.”
However, Home Reports have their defenders. Sarah Speirs, director of the Royal Institution of Chartered Surveyors Scotland, said Home Reports were prepared to a “strict mandatory set of valuation standards”.
She added: “The Home Report is not restricting the market, but providing purchasers with detailed information to ensure they are fully aware of all the facts relating to condition and value before committing themselves to what is probably the largest financial decision they will make.
“It has also been well received by sellers as they view it as a positive marketing tool with no hidden surprises when it comes to progressing an offer.”
The Scottish Government has said it will review Home Reports in December.