The NAEA is urging the Scottish Government to scrap Home Reports – the Scottish version of Home Information Packs.
Unlike HIPs, Home Reports contain a valuation. But a few days ago, the Edinburgh Solicitors Centre reported that ‘most’ properties are selling for less than their valuations, with one in five homes during the last three months being sold for more than 10% below valuation.
NAEA Scottish spokesman David Mackie said first minister Alex Salmond should abolish Home Reports, which have been compulsory in Scotland since 2008.
He said: “Home Reports are widely seen as an extravagance in Scotland; they haven’t had their desired impact and it’s not too late to suspend the scheme.
“Salmond should give the Scottish housing market a double dose of support by scrapping Home Reports and by reforming Stamp Duty.”
The newly-passed Scotland Act grants the Scottish Government full powers over the rate of Stamp Duty.
Mackie said: “Now that he has been granted these extra powers, it is the perfect opportunity for Alex Salmond to make full use of them and scrap the unfair ‘slab’ structure of Stamp Duty. He should replace it with a fairer, more logical system that ditches the extreme jumps in taxation created by the current system and set by the UK Treasury.”
Mackie added: “The UK Government has made it clear that it has no intention of addressing the current system, despite a strong case for reform. Stamp Duty distorts the housing market, and especially hits first-time buyers.”
Comments
NAEA? Doing something? Surely not?
Perhaps Salmond could tell the NAEA who to run their business oh and the idiot RR!
At no other point in the process before an offer becomes unconditional, does a buyer obtain any form of valuation to get appropriate advice about the wisdom, or otherwise, of their decision to buy.
Valuers 'follow' market evidence. Good valuers keep following it.
In a falling market, prices paid will, of course, tend to be lower than valuation prices.
That shouldn't mean that you ought to chuck the valuation!
The Home Reports in Scotland have been a disaster from day one. Over-expensive and untrusted.
They are instructed by the selling agent, who gives tens of thousands of pounds worth of business to the surveyor over the course of a year. Are the surveyors really going to argue with the agent over value and stand to lose thousands of pounds of business ? No.
Also, properties are selling so far below home report value that no-one in Scotland actually believes the home report and its now common for the buyer to instruct their own survey as well, which somewhat defeats the purpose.
Its only a matter of time till the lenders wake up and refuse to accept the Scottish Home Report anymore. They are not worth the paper they are written on, and cost from £400-£1000 for one done by a 'reputable' company. Its an unecessary barrier to many to be able to put their property up for sale. I wouldn't buy a property based on the home report - I'd always order my own independent survey by a surveyor I know and trust.
Abolishing them is long overdue !