Home Reports – The Final Nail in the Coffin?

As readers of previous blogs will know I have been a vociferous opponent of the Home Report since the concept was first mooted many years ago.  I see it as an unnecessary cost and burden on the hard pressed seller and all the evidence that I have gathered shows that it is putting the brakes on the housing market.  One of the reasons behind the introduction of the Home Report was supposedly to reduce the number of surveys that were carried out on a property – this has proved to be nonsensical given the 12 week shelf-life of a Home Report and also the fact that many lenders are not accepting the Home Report or a refresh.  It would appear that now some lenders are in fact instructing their own surveyors to carry out a scheme 1 survey to check the original surveyor’s valuation of the property.

This means that there could be as many as three surveys being done at a considerable cost which will inevitably be passed on to the consumer.   The other interesting thing happening is that when the lenders’ surveyors are carrying out their survey for mortgage purposes they are simply valuing the property at the price the purchaser is paying.  Not only should the extra costs be considered, but the other consequence of the Home Report system is a constant downward spiral in house prices.

I would urge the Scottish Government to scrap the Home Report system now.

Lindsay Darroch
Partner & Head of Property

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