This item was published during the term of a previous administration that ended in April 2007
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Single survey pilots launched
14/07/2004
Home buyers in four areas of Scotland can now make more informed decisions and potentially save money when they make an offer for a home.
A pilot single survey scheme gets underway today in Inverness, Dundee and parts of Edinburgh and Glasgow in an attempt to cut the common and costly problem of multiple surveys in property hotspots.
The survey also means buyers have much more detailed information about the condition of a house or flat before they make an offer.
When any of the 293,000 homes in the pilot areas are put on the market, the owner can now commission and pay for a single survey and make this available to all viewers. It is anticipated that this cost - expected to start from around £300 - will then be reimbursed by the successful buyer.
The survey provides a comprehensive guide to the condition of the property, together with a valuation. It also contains important information on energy efficiency and a report on access for disabled people.
Launching the pilot in Glasgow, Communities Minister Margaret Curran said: "Buying a home is probably the most expensive transaction in someone's life and we want to make the housing market more transparent. Too many buyers invest with the minimal valuation and miss out on important information about the state of the property.
"Our research shows that one in four buyers face unexpected repair costs of almost £4,000 in the first year when they've moved home. And in popular areas, a third of buyers waste money on multiple reports costing about £100 a time.
"So the benefits of single surveys are clear. It will bring peace of mind about the state of the investment. People looking to buy in the four pilot areas will see whether a single survey is available from the property particulars.
"And I'm certain sellers can reap benefits too. A single survey should create more interest in the property and result in realistic bids."
The Executive has devised the pilots in conjunction with solicitors, estate agents, chartered surveyors and mortgage lenders.
Bill Scouller, Chief Executive of the Glasgow Solicitors Property Centre (GSPC) said: "GSPC and our member firms will be actively supporting this pilot. Anything that could benefit the consumer or simplify the house buying process should be taken very seriously and given the chance to prove its worth. We will be the first to make single surveys available on our website and we will strive to ensure that access to single surveys is as easy as possible for the public".
Elizabeth Bruce, Assistant Director of RICS Scotland said: "We welcome the start of this pilot. We've always argued that homebuyers should have as much information as possible before making such a major financial investment. We've worked hard to ensure that this will be a robust service that will truly assess the market demand and await the results of the pilot with great interest."
Graeme Millar, Chairman of the Scottish Consumer Council said: "This pilot will avoid the need for every prospective buyer to commission and pay for their own survey, and will provide better information about the property before bidding. We hope that it will also help to address the problems caused by the setting of artificially low 'upset' prices. Buyers have told us that this has led them into paying for surveys for properties they would never realistically be able to afford."
Linsey Lewin, of the Law Society of Scotland said: "The Society is delighted that the Pilot has now been launched. We hope it will be successful in establishing whether the single survey is the way forward and look forward with interest to the pilot results."
Kennedy Foster of CML Scotland said: "This could help to reduce multiple valuations and establish more realistic pricing, but might also increase transaction costs or have other unforeseen effects. We therefore welcome this pilot to help gauge the impact of the single survey in practice. If the results are positive, a trial of purchasers' information packs may also be needed to reflect the full breadth of the Housing Improvement Task Force's recommendations."
The pilot areas are:
- Edinburgh North and Leith
- Greater Dundee
- Glasgow North and West
- area around and including Inverness
Maps showing the pilot areas and a mock-up survey can be found at www.singlesurveypilot.co.uk
Number of homes in the pilot areas:
- Inverness area - 40,000 homes
- Glasgow area - 130,000
- Edinburgh area - 38,000
- Greater Dundee area - 85,000
Average house prices according to the Registers of Scotland's latest data (in pounds sterling):
- Scotland - £106,932
- Edinburgh area - £139,859
- Glasgow area - £103,066
- Central Scotland (includes Dundee area) - £96,974
- Highlands and Islands - £92,348
Areas have been chosen to reflect a diversity of market conditions and features such as prices, market activity, urban and rural properties and the extent to which solicitors and estate agents are active as selling agents.
The pilot is a voluntary scheme. It is expected that selling agents will ask and encourage all sellers in the area to take part. A full evaluation of the pilot will be carried out in around 8-12 months.
A Housing Improvement Task Force identified weaknesses in the house buying and selling system in Scotland.
These were
- a reliance by most purchasers on valuations which provide only limited information on the property's condition
- the existing system encourages multi-surveys and valuations, particularly in buoyant markets such as Edinburgh and Glasgow, resulting in increased costs for buyers and means they are less inclined to commission detailed surveys in advance of making an offer
- artificially low upset prices set by the seller to stimulate interest, which can result in prospective buyers making unrealistic offers on property