Lawyers deliver damning verdict on 'fatally wounded' Home Reports

Published on Monday 9 March 2009 21:13

THE Home Reports system is "dead or fatally wounded" and its abandonment or suspension should be considered immediately by the Scottish Government, lawyers have said.

A spokesman for the Scottish Law Agents Society (SLAS) said the scheme was "in chaos" after lenders confirmed they would not accept reports from surveyors not on their approved list.

The Law Society of Scotland said the Scottish Government should use its interim review of the system to consider the whole future of Home Reports.

Ian Ferguson, of the SLAS, which represents about 2,000 lawyers, said: "The government promised that sellers obtaining one would not have to pay for a report when they are buying because they can rely on the Home Report. Not only may they not be able to rely on the report, but the report they have paid for may not be accepted by anyone buying their property.

"The government have broken these promises and have no way of keeping them for the future. The scheme is now in chaos and should be scrapped.

"The effect of all this is that the scheme is dead or fatally wounded."

Ross MacKay, a member of the Law Society of Scotland's conveyancing committee, said: "We are pressing the government to widen the scope of its interim review, which is intended to consider minor changes to the regulations, to include the options of suspending or abandoning Home Reports or at least the compulsory single survey."

A Scottish Government spokesman said Home Reports gave buyers and sellers the best information possible.

"The Council of Mortgage Lenders has said all the major lenders involved in house purchase in Scotland will accept the valuation provided through the Home Report approach, in line with their policies," he said.

"The lenders' panel system works the same way as before Home Reports were introduced. There's no evidence to suggest this is a problem."

The spokesman added: "We intend to undertake a review after 12 months of operation and we will take on board any refinements that are required to improve its implementation. However, it is important to stress that the Home Report is here to stay and there is no question of it being abolished."

David McLetchie, the Scottish Conservatives' chief whip, said he endorsed the calls made by the Law Society, coming on top of what was said by the SLAS.

"The government to date has been pig-headed and stubborn on the issue, but it should recognise that it is not a matter of political pride or machismo; it is now a matter of dealing with a serious situation as regards the housing market and it should heed the advice."

A COMPULSORY CHANGE IN LAW

SINCE 1 December the law states every house put on the market in Scotland must come with a Home Report provided by the seller.

This consists of three documents: a survey showing the condition and value of the house compiled by a chartered surveyor; an energy certificate showing the efficiency of the house also by a surveyor; and a property questionnaire showing information such as council tax banding compiled by the seller of the house.

The report costs sellers of an average house about 300 plus VAT and remains valid for a period of 12 weeks.

There are some exceptions to the rules, with new-build properties, right to buy homes and some conversions not included.