Uncertainty surrounds Scotland’s Home Reports

Permalink: Uncertainty surrounds Scotland’s Home Reports
by Lin Freestone

From the beginning of December 2008, potential purchasers of a residential property in Scotland will have to be given a Home Report, which will contain a survey of the property, a valuation and an energy assessment. They will also contain a questionnaire compiled by the seller, concerning issues like council tax, parking and maintenance costs.

The introduction of the Home Reports has not been welcomed by some people operating in the housing market in Scotland. The Scottish Law Agents’ Society has campaigned against them, arguing that launching the scheme in a time of recession is bad judgement.

The preparation of the report will cost in the region of £800 and it is claimed they are costly, and unnecessary. Scotland’s housing market is as fragile as it is in the rest of the UK and there are fears that, instead of simplifying the buying and selling of properties in Scotland, the mandatory reports could cripple the market.

However, the reports have the support of the Scottish Government and the watchdog Consumer Focus Scotland. It is claimed they will prevent buyers having to pay for multiple surveys and offer many benefits not available in the Home Information Pack offered to purchasers in England and Wales.

Some mortgage lenders are refusing to accept the new reports, and are challenging the valuations. Some still require a valuation from a valuer on their own panel for security and quality purposes.

While lenders are undecided about the validity of the Home Reports and still considering their positions, it is very difficult for the Scottish market to operate and get the best deal for those buying and selling at the moment.