This item was published during the term of a previous administration that ended in April 2007
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Most home buyers content with system
09/05/2002
Research published today shows that most home-buyers are satisfied with the buying and selling process, but believe that there is room for improvement in the information that they get on the condition and running costs of their new home.
The report was commissioned on behalf of the Housing Improvement Task Force and is based on a survey of 900 house buyers across Scotland and interviews with solicitors, surveyors and other professionals conducted by DTZ Pieda Consulting and NFO System Three Social Research.
It provides a detailed analysis of the house buying and selling process in Scotland, the experiences, attitudes and levels of satisfaction of purchasers and sellers and the views of those that advise them.
The main findings include:
- 46% of respondents did not get any advice on the house buying process. While this figure decreases to 30% for first time buyers, it is still a considerable percentage. Those that did get advice mainly did so via a solicitor
- People often only had contact with one or two of the professionals involved in the transaction. In particular, they tended to instruct valuations/surveys via a third party
- There is a great deal of written information available. However, people often reported they felt overwhelmed by the volume of information, and noted that a clear, concise guide to what they had to do was not available
- 76% of people were successful with the first offer they made for a property and 67% of people had just one valuation/survey conducted. 32% of buyers experienced multiple surveys
- There is broad support for some form of "single" survey system among home buyers but no consensus as to how this should be achieved. Professionals of all types showed little enthusiasm for single surveys
- While most people were satisfied with the information they received about their home, 27% discovered unexpected work needed in the first year (costing, on average, £3,700)
- The majority of valuations/surveys conducted are Scheme 1 Mortgage Valuation Reports
- Respondents did not always display a good understanding of the role and content of the different types of valuation and survey reports available. There is also some evidence that the standard surveys currently being offered by surveyors do not meet the needs of home buyers
Minister for Social Justice Margaret Curran said:
"This report is a detailed analysis of research commissioned for the HITF prior to the publication of the Task Force's Stage One Report in March this year.
"The in-depth examination published today bears out what HITF saw as the priority challenges and issues for modernising the house buying and selling system in Scotland. The information will be a key element of the evidence that HITF will use to draw up its final recommendations on what needs to be done to improve the system.
"Over 100,000 houses are bought and sold each year in Scotland; a house is the biggest purchase that most people ever make and represents a major long term financial commitment. Good information on the condition of a property is essential if buyers are to make informed choices.
"The report demonstrates that the system we have in Scotland works well for most people and that solicitors, lenders, surveyors and estate agents are providing good quality services to buyers and sellers. But it also shows that it could be better. The job of the Task Force is to consider how this can be achieved without losing any of the strengths."
An interim report of this research was used to inform much of the analysis of current house-buying and selling processes set out in the Task Force's First Report and published on March 13, 2002. The interim research was used following agreement by HITF members that the interim findings provided an authoritative base on which to base their conclusions. The detailed findings are published today on the HITF website on www.scotland.gov.uk/hitf
The HITF was established in March 2001 to undertake a comprehensive examination of the issues affecting the conditions and quality of private sector housing in Scotland. The Task Force agreed to undertake its work in two parts - an examination of the problems and issues (Stage One), and the consideration of policy options for tackling these issues (Stage Two). The Stage One Report "Issues in Improving Quality in Private Houses" was published on 13 March 2002 as a basis for wider consultation. The Stage Two Report will be published in early 2003.
The 16 members of the Task Force have been drawn from a range of organisations including:- The Council of Mortgage Lenders, the Institute of Housing, the Scottish Consumer Council, local authorities, the private sector, surveyors, the legal profession and academia. They serve on the Task Force as individuals rather than representatives of their organisations or professions.