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'Home Report' to be launched this year
30/01/2008
Would-be house buyers will save money and get greater peace of mind under Scottish Government plans for a greener and more informed housing market.
In a move approved by the Local Government and Communities Committee today Communities Minister Stewart Maxwell said that from December 1, 2008, properties for sale will have to be marketed with information, now branded as the 'Home Report'.
The Home Report, commissioned by the seller, will provide prospective buyers with detailed information about the condition and value of the property before offers are made.
In this way buyers will not waste time and money on mortgage valuation reports on properties where their offers are unsuccessful.
And first-time buyers, with nothing to sell, will particularly benefit from a Home Report provided by the seller.
The Home Report will contain three documents providing home buyers with more information than they have ever had. These are
- A single survey prepared by a chartered surveyor containing detailed information on property condition, accessibility information and a valuation.
- An energy report giving a home's energy efficiency rating and its environmental impact in terms of carbon dioxide emissions. It recommends ways to improve the building's energy efficiency and gives contact details for further advice and information about how to make a home more energy efficient and save fuel costs.
- A property questionnaire to give prospective buyers useful information about the property, such as parking arrangements, factoring and property alterations.
Mr Maxwell said:
"The Scottish Government has accepted what consultation has established - that the Home Report will make the housing market fairer, greener and much more informed.
"Buying a house is for most people the largest investment they make in their lives and we believe that the buyer should have good, professional information about its condition and value before making an offer.
"The Home report will offer prospective buyers more confidence in the property's condition.
"The Energy Report should result in greater demand for energy efficient homes and is supported by environmental groups."
Julia Clarke, Principle Public Affairs Officer for consumers organisation, Which?, added:
"We are pleased that the Home Report has been designed to suit the Scottish housing market.
"This significant change to the buying and selling process in Scotland means that buyers and sellers will have better information than ever before about the condition and value of properties before offers are made.
"The Home Report will have an immediate benefit to first-time buyers who often have to spend hundreds in order to find out whether they can, or indeed should buy a home."
Sarah O'Neill, legal officer at the Scottish Consumer Council said:
"We welcome the new Home Report, which we believe is in the consumer interest.
"It will avoid the need for every prospective buyer to commission and pay for their own survey, and will provide potential buyers with better information about the property before bidding.
"The single survey will also be in the interests of sellers. It must be remembered that most sellers are also buying, and will benefit from the new system as purchasers.
"The single survey will also flag up any major problems to sellers at an early stage, providing an opportunity to address them early in the process.
"We are convinced that in a few years time, the new system will seem unremarkable, and we will wonder why it took us so long to finally adopt a more common sense approach."
Stuart Hay, Head of Projects and Campaigns for Friends of the Earth, said:
"Scotland's homes account for a third of our greenhouse gas emissions, making a massive contribution to worsening climate change."
"One of the biggest barriers to reducing these emissions is that occupiers and owners are often unaware of how energy efficient their building is, and what they can do to improve it. The Home Report's energy report will help bridge that information gap."
Councillor Paul Edie, Housing Convenor at City of Edinburgh Council, added:
"The Home Report will help people buying a home make better-informed decisions on what, for many, will be the biggest financial investment they make in their lives.
"It will encourage house sellers to invest to minimise their properties' impact on the environment, improve energy efficiency and make their homes more accessible."
The proposals and legislation for the Home Report followed the recommendations of the Home Improvement Task Force and have been subject to a number of public consultations and with the bodies representing the interested professions.
Advice and involvement in developing the proposals has been obtained from a number of groups that have involved the Royal Institution of Chartered Surveyors, the Law Society of Scotland, the National Association of Estate Agents, the Scottish Consumer Council and the Council of Mortgage Lenders.
The Home Report Implementation Group which includes representatives from the Royal Institution of Chartered Surveyors, the Law Society of Scotland, the National Association of Estate Agents, the Scottish Consumer Council and the Council of Mortgage Lenders will work on an implementation plan for the Home Report.
The Group will be involved in be involved in disseminating information to firms involved in the house buying and selling process. The Scottish Government is working with the organisations on the Group to prepare for this programme of work during 2008.