Home reports 'beneficial' to buyers and sellers

STV
Home reports 'beneficial' to buyers and sellers

New style home reports have been "beneficial" to Scottish property buyers and sellers, according to surveyors.

Today marks the first anniversary of the introduction of the home report scheme, which made it compulsory for sellers to have a report prepared as part of putting their home on the market.

At the time they were introduced critics claimed they would mean the "death of the Scottish property market".

At the weekend, the Scottish Government published figures showing more than 75,000 of the reports - which combine a building survey, an energy report and a property questionnaire -  had been completed.

On the first anniversary of the introduction of the new rules, the Royal Institution of Chartered Surveyors (RICS) Scotland said the home reports could be used as a "marketing tool" for sellers to attract potential buyers, while would-be purchasers gained from having information about the property's condition and valuation before seeing it.

Chartered surveyors have welcomed the introduction of home reports, and blame the recession for the slowdown in Scotland's property market.

In a survey of ten of Scotland's biggest chartered surveyor firms, the Institution found that most said the reports "had not hindered" the recovery of the housing market.

The firms, who between them carry out 90% of all home reports in Scotland, were asked about how the new rules had affected the market.

Eighty per cent said that house prices had not been affected, and 20% said they thought prices were now higher than a year ago.

Seven firms said the home report had "no impact" on the number of homes being put up for sale, and two said more sellers had been enticed onto the property market.

Graeme Hartley, director of RICS Scotland, said the reports offered "clarity" to buyers and sellers.

"There is no doubt in my mind that the home report has benefited buyers and sellers over the past 12 months.

"The home report was not intended to miraculously fix the housing market but as our survey of chartered surveyors shows, it has certainly not hindered the market."

Housing and Communities Minister Alex Neil said the reports were "a simple tool, which doesn't cost a fortune", that helped buyers make clear decisions when buying a house.

"Buyers can now keep hold of their savings for deposits, without having to shell out for surveys on properties they don't get to buy," he said.

"There is also much more clarity about the value of a house, with a virtual end to the unrealistic 'offers over'.

"For sellers it's proving a great way to attract inquiries from potential buyers and guide them on how to prepare the property for sale. In the round, it's good news for everyone."

Sarah O'Neill, head of policy and solicitor at Consumer Focus Scotland, said the reports helped to boost confidence for buyers and reduce the risks and stresses of buying a home. "Everyone benefits from home reports and as the market recovers, their importance will become even clearer."