Rethink single survey, urges Society
10 May 07
Call for new executive to take a fresh look as England heads for a "mess" over HIPs
The Law Society of Scotland is calling for a rethink on plans to introduce a compulsory single survey in Scotland following the Scottish elections.
The Society has submitted its response to a Scottish Executive consultation on the regulations for purchasers’ information packs (PIPs) and is urging solicitors to do the same before the 15 May deadline - the day before MPs at Westminster are set to vote on home information packs, due to be brought into force in England and Wales on 1 June.
HIPs "in a mess"
Janette Wilson, convener of the Society’s Conveyancing Committee, said: “You only have to look at the mess that home information packs (HIPs) are in south of the border, just weeks before they are due to be brought into force, to see that the new Executive will need to seriously rethink plans for a compulsory single survey in Scotland.”
The Society, which welcomed the Executive’s aims to improve Scotland’s housing stock and the housebuying process, has been highly critical of plans for a compulsory single survey, believing that a legal requirement for a seller to commission such a survey before they can put their house up for sale, reduces consumer choice and could increase problems for housebuyers, particularly in a slow market or for those on low incomes.
A recent poll of Scottish solicitors showed that over 80% of respondents did not believe the single survey would improve the housebuying and selling process, while 82% thought it would not improve the housing stock in Scotland.
The results of another online questionnaire run by the Society showed that the biggest concerns for clients when buying a property are late confirmation of mortgage loans, and home alterations that have not received proper authorisation. These lead to delays which cost the housebuying public millions of pounds per year.
Multiple surveys "not solved"
Ms Wilson continued: “The Society absolutely supports the Executive’s desire to improve the housebuying process for the Scottish public and we also believe that more and better information earlier on in the housebuying process is essential.
"But we don’t believe the single survey has been fully tested and there are other priorities to be addressed. For example, the property sale questionnaire (PSQ), which every seller would be obliged to complete as part of the PIP, is a good way forward and provides much of the information that housebuyers want to know."
Because any property survey is time sensitive, she added, a compulsory single survey would not solve the issue of multiple surveys, and their use could impact on those living in less desirable properties or areas where properties tend to sell more slowly. Some homebuyers would also commission their own reports in an effort to get a higher valuation and therefore a better loan; and the bar on the purchaser having any discussions with the surveyor might lead to some carrying out their own surveys.
“The single survey also seeks to serve both the seller and the buyer who have completely opposing desires, in that the seller wants to achieve the highest price, while the purchaser wants to make the lowest possible offer to secure the property.”
To view the Society’s response log on to: http://www.lawscot.org.uk/Members_Information/convey_essens/PIP/Response.aspx .