IT’S sometimes said that three of the most stressful things in life are the loss of a loved one, divorce and moving house. The first two are fair enough, but why should changing one’s address be profoundly stressful and difficult?
Perhaps it’s because the housing market is a huge earner for both the Government and a variety of professional groups. Expense is literally in with the bricks. To the layman at least, the associated costs are out of all proportion to the work and expertise required. Mandatory single surveys, introduced in 2008, are a case in point.
Essentially, they were intended to avoid multiple surveys being carried out on the same property. Additionally, it was claimed independent valuations would eliminate artificially low “asking prices” and ultimately improve the quality of the nation’s housing stock.
In 2013, the Government conducted a two-part review of its new system. The consultation elicited a derisory 144 responses. The Registers of Scotland tells us that between 2006 and 2016 an average of more than 95,000 houses changed hands each year. Yet, on the basis of 144 responses the Government claimed the broad majority “supported and valued home reports”. With apologies to Mandy Rice-Davies, “Yes, they would, wouldn’t they?”
To be fair, the parallel research study confirmed that multiple surveys had virtually been eliminated and asking prices were being pitched at more realistic levels. Yet not everything in the house was in order.
The review did not take account of the significantly changed housing market. When the new system was introduced the market was at its most buoyant. In 2006-2007 more than150,000 homes changed hands and multiple surveys were the order of the day. By 2015- 2016 the number had fallen to just over 100,000. While it’s difficult to separate chicken and egg, is it possible that the new system depressed the market?
In 2014, the Law Society of Scotland highlighted the problems the new system posed for financially distressed sellers. Many find it difficult to raise the hundreds of pounds upfront for a single survey, often resulting in repossession.
Anecdotally, there are doubts whether single surveys represent value for money. What do potential sellers get for around £800? They will get what is described as a “visual inspection”. In layman’s terms that means someone will poke around your house for an hour, prod external walls in a few places with a screwdriver and make non-committal noises. Rigorous or scientific it is not.
There will be pages of terms and conditions essentially absolving the surveyor for oversights. The terms and conditions could be replaced by a single sentence, “A big boy did it and ran away”.
At the end of the day the seller receives a 20 or 30-page report, much of which is of little value to the end user. The system requires simplification and made much more affordable.
A fresh look is required to adjust the balance in favour of buyers and sellers and significantly reduce eye-watering and unjustifiably high professional costs.
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