Estate agents raise roof over debut of single seller surveys

Published on Monday 1 December 2008 09:06

EDINBURGH property experts are urging the Government to carry out an early review of the controversial new home report system, amid fears of its impact on the already struggling housing market.

Ron Smith, chief executive of the Edinburgh Solicitors Property Centre, issued his warning on the first day of compulsory "single seller surveys".

From today, anyone putting their home on the market must pay for a "home report" – including a condition report and valuation – which is made available to all prospective buyers.

Critics have claimed the reports, which could cost between 500 and 700 for an average property, are an unnecessary extra expense which will put sellers off, leading to fewer houses coming on the market. It is also still unclear how much it will cost to update a report if a property is on the market for a long time, or when this would have to be done.

The ESPC, in common with many solicitors and estate agents, opposed the new system when it was first proposed, but says it is all geared up to implement it.

However, Mr Smith says the question of whether the change will have a negative effect on the housing market was "too close to call". He said: "December is normally extremely quiet and we are in a big slowdown in the housing market, so the market is pretty depressed anyway."

But he continued: "The Government would be very foolish if they didn't review it continually and react to what the market will tell them.

"It needs to be kept under constant review and the views of professionals in the system and the public who will have to use them have to be taken into account."

Single seller surveys were originally proposed as a way of ending the situation whereby several would-be buyers paid for separate surveys of the same property when only one could end up buying the house.

However, solicitors say so many offers are now made "subject to survey" that househunters are no longer running up big bills paying for multiple surveys.

But Graeme Hartley, the Edinburgh-based director of the Royal Institution of Chartered Surveyors, said the new home reports would be welcomed by both sellers and buyers.

"I think sellers will be happy to get a valuable marketing tool. And buyers are going to get a condition report and valuation up front for nothing."

He said buyers should have no fears about trusting a report paid for by the seller because surveyors had a legal obligation to be as accurate as possible.

Brian Monks, who is trying to sell his three-bedroomed New Town flat, has already had surveyors round to produce a home report. He said: "Being on the market and with the new legislation coming in today, I felt I would be behind the curve if I didn't have this."

And he hopes the fact he can offer a free valuation and other information on the third-floor property in East London Street – which has a 299,995 fixed price – will help attract more interest.

"It has been on the market five weeks, I've not had any offers and interest has been slow.

"Having a home report can't be a bad thing."

THE REPORT'S THREE ELEMENTS

A single survey prepared by a chartered surveyor containing detailed information on property condition, accessibility information and a valuation.

&#149 An energy report giving a home's energy efficiency rating and its environmental impact in terms of carbon dioxide emissions. It also recommends ways to improve the building's energy efficiency.

&#149 A questionnaire to give prospective buyers useful information about the property, such as parking arrangements, factoring and property alterations.