Further industry calls for the SNP to abandon home reports

Published on Monday 1 December 2008 21:38

THE Scottish Government has come under further pressure to drop home reports from two leading figures in the property industry.

John MacRae, of the Aberdeen Solicitors' Property Centre, and the Edinburgh-based Jim Dallas, from Allied Surveyors, have warned the new rules will mean that more than one survey will have to be carried out on properties.

Their criticisms directly contradict claims by Stewart Maxwell, the SNP housing minister, in The Scotsman last week. In his letter, Mr Maxwell said home reports would have a neutral effect, surveys would not need to be repeated and the actual cost would be from about 350.

But Mr Dallas insisted surveyor costs in Edinburgh alone would range from 450 to 1,250. He added: "I suspect solicitors will advise purchasers that they cannot rely on home reports, simply so they can't be sued.

"It's difficult to say what sort of effect that will have, but there will also be a problem that these home reports will run out after 12 weeks. If that happens, they will have to be done again at the cost of the seller because the valuation may have changed."

Mr MacRae added that he believed mortgage companies would not accept home reports and would insist on their own surveys.

"That means that every property will get at least two surveys carried out on it," he said. "This really brings into question what value the home reports provide."

Mr Dallas and Mr MacRae raised serious concerns about the impact on a market where property is not selling.

Their concerns come after a rush of properties went on the market to beat the home reports. More than 400 in Edinburgh and 300 in Aberdeen, three times the weekly average, were put up for sale in the last three days of last week.