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Executive proposes 'single survey' process

13/03/2003

Single surveys, commissioned by a property seller and made available to potential buyers, are to be tried out in Scotland by the end of the year.

The pilot survey scheme is one measure proposed by the Executive in response to a report from its Housing Improvement Task Force (HITF) which addresses common frustrations experienced by home owners, house buyers and private sector tenants.

The problem of multiple surveys was found to affect one third of house purchasers in Scotland. Research found that up to 27 per cent of recent buyers faced unexpected repair costs of around £3,700.

The HITF final report has made over 150 recommendations including proposals to:

  • improve the information for home buyers on property condition and remove the need for multiple surveys
  • ensure that private landlords carry out necessary repairs
  • help flat owners work together to ensure that common repairs are done
  • modernise the powers available to local authorities to tackle house condition problems

Today, at the Institute of Chartered Housing conference in Aberdeen, Social Justice Minister Margaret Curran said:

"Current arrangements date to an era when home ownership was the preserve of the few. Today, 70 per cent of Scotland's housing is privately owned and a radical rethink is required to modernise this outdated system.

"The areas I want to immediately concentrate on are single surveys, new forms of assistance such as loans for repairs, more effective rules for communal maintenance and updating the tolerable standard. We will be consulting closely on these aspects with all the relevant bodies, to see how they can be progressed.

"We hope to be able to take forward proposals for a pilot single survey as soon as possible given there is broad consensus that this should be the first step.

"This is a thorough report with over 150 recommedations and I am sure it will inform government policies. Some could be implemented through existing powers, others would need new legislation and it will be for the future administration to decide on this."

The HITF first met in March 2001. Its membership was drawn from a range of backgrounds across the housing sector including: the Chartered Institute of Housing, the Scottish Consumer Council, Shelter, housing associations, local authorities, private landlords, property managers, surveyors, mortgage lenders, the legal profession and leading academics.

On the question of multiple surveys, research showed that the majority of buyers opt for a basic Scheme 1 mortgage valuation survey which is intended to provide a valuation for the lender rather than a report on the condition of the property.

It is anticipated that a pilot single survey system, based on a more detailed Scheme 2 valuation, will involve the seller commissioning the survey including a valuation, making it available to interested parties, with the costs being passed on to the successful bidder.

Existing arrangements to fund repairs allow for the provision of grants, either mandatory, for example where a notice has been served by the council, or at the council's discretion.

The HITF is proposing that councils should not be required to provide mandatory grants but they should have wider discretion to make grants to owners who face genuine problems funding repair works or provide loans or other practical assistance to ensure that the work proceeds.

The HITF is also recommending that the services provided to older owners and those with particular needs, through Care and Repair projects, should be available in every local authority area.

Existing arrangements for communal repairs in tenements are based largely on the title deeds of the individual flats and, where these are silent or flawed, the common law of the tenement applies.

The HITF is recommending that existing title based arrangements should remain in force, but that the common law provision should be restated and simplified. A draft bill has already been prepared by the Scottish Law Commission and the HITF makes recommendations for changes to their proposals. The Executive will shortly issue a consultation paper based on the Commission's proposals for a Tenements (Scotland) Bill which makes reference to the relevant recommendations of the HITF. Any decision on the introduction (and terms) of the Tenements Bill will be a matter for the incoming Administration after the parliamentary election on May 1.

The Executive has already announced that £215 million will be available over the three years (2003/04-2005/06) for private sector housing overall.

Page updated: Wednesday, July 21, 2004