home reports

New system launch is badly timed

Published:

IN THEORY, home reports will make buying and selling houses cheaper, more transparent and give the consumer more power to make decisions for themselves.

A single source of information on a property, available to all, levels the playing field and, again in theory, makes for a smoother transaction all round.

The theory flies out of the window, however, when such factors as vested interests, the co-operation of mortgage lenders and the state of the economy are taken into account.

As of yesterday, anyone putting their house up for sale must have a home report including a survey.

Its launch has been ill-advised and badly timed.

Lenders have not given full backing to the scheme and may still demand that buyers commission their own surveys. The economic slump has put the market into the doldrums and anything that has the potential to further depress activity is about as welcome as rising damp.

On top of all this, there has been extensive lobbying by surveyors and lawyers – the two groups who stand to lose financially from the move – to undermine the idea.

The Scottish Government has defended going ahead with the launch, but it would surely have been more prudent to wait until the dust had settled on the credit crunch and mortgage lending was in ruder health.

At best, ministers can hope that the move has no real effect on the housing market. At worst, it could put off buyers and sellers from entering the market until the impact of home reports becomes clear.

Ministers would have been well advised to sit out the financial storm before launching home reports.