04 March 2005 Latest News
Executive backs single surveys

MINISTERS MOVED yesterday to bring in a mandatory single survey for people selling their houses.

At the moment would-be buyers have to pay for a survey for each property they hope to purchase. Under the Executive proposals the seller will provide a single survey for use by all potential buyers when the property comes on the market.

Ministers have decided to impose the single survey after the failure of a voluntary scheme. The voluntary pilots in Dundee, Inverness and parts of Edinburgh and Glasgow, began in July and were due to run for between eight and 12 months.

It was hoped that 1200 surveys would be commissioned to allow for statistically robust analysis.

However, in seven months only 74 surveys were commissioned—65 in Glasgow, five in Inverness, three in Dundee and one in Edinburgh.

Last night Communities Minister Malcolm Chisholm explained why he was bringing in compulsory single surveys.

“For most people, buying a house is the most expensive purchase of their lives,” he said.

“Yet the worry of spending hundreds of pounds on what could be wasted surveys means many house buyers take ownership of their new property lacking an in-depth knowledge of its condition.

“We know that one in four buyers face unexpected repair costs of around £3700 in their first year in their new home, while in popular areas, a third of buyers effectively waste hundreds of pounds on surveys that don’t lead to a purchase.”

The minister said the voluntary approach had not worked.

“As we approach the eight-month point of the pilot, it is clear that the voluntary approach has not delivered, and that in this market-led situation, the potential marketing advantages have not provided sufficient incentives for house sellers to take part,” he said.

“We believe that the rationale for the single survey remains strong…We have therefore concluded that…we should now evaluate the detailed outcomes of the pilot with a view to introducing a mandatory single survey scheme.”

Scottish Tory finance spokesman Brian Monteith blasted the idea.

“Clearly it doesn’t matter that a meagre 73 people rather than the target of 2000 bothered to use single survey in its pilot study,” he said.

“What is a pilot for if not to let Ministers know that the public don’t want the system, that it is not trusted and is being met with consumer resistance?

“Why bother with a pilot; why bother with any consultation?”

Graeme Hartley, director of the Royal Institute of Chartered Surveys Scotland, said, “We believe that this is not in the best interests of consumer choice. Sellers across Scotland have already shied away from the single survey in droves. Surely it would logical and useful to have robust analysis of the reasons for this lack of interest?

“Professional advice has been sought and readily given over the past few years to develop a product that met the original aims of the Housing Improvement Task Force.

“Sellers across Scotland have turned their backs on this scheme and by pressing ahead regardless the Executive is ignoring their views.

“We are particularly concerned about issues such as the inevitable bureaucracy that will have to be set up to manage a mandatory system. A mandatory single survey will impact hardest on lower income consumers.

“We also query whether buyers will rely solely on a report commissioned by the seller.

“This is not a market-led outcome but a decision driven by policy and implemented by stealth against consumers’ will.”

Professor Stewart Brymer, a partner in Dundee solicitors Thorntons, last night said the scheme had proven unpopular and left more questions than answers. He said, “The Executive said to me this afternoon they were not going to rush this and they wanted to get all the players back in one room.

“At the present time, given the speed this is being brought forward, no-one is very warm to the idea (that) we should be meeting with the Executive. If they know so much about it as a result of a failed pilot, why don’t they tell us? Why bother with the pilot?”