To ask the Scottish Executive whether it has received any representations regarding the single survey scheme, in particular regarding the merit of the scheme if a survey is three months old or more, and, if so, who the representations were from and what views were expressed in respect of the length of time for which such surveys should be valid.
In its final report in 2003, the Housing Improvement Task Force recommended that there should be no prescribed “shelf life”
for the single survey on the basis that a surveyor can be expected to assess the condition of a property only at the time when survey is carried out. This is similar to the current position when surveys are commissioned by buyers.
The Scottish Executive consultation paper on proposals for the Housing Bill included a question on time limits for surveys. Eighty-six percent of those who responded on this point said that there should be a time limit on single surveys. Of those who agreed that there should be a time limit over 60% proposed that the time limit should be six months or less. A further quarter of respondents to this question said that the maximum time limit on the validity of a single survey should be one year.
Some respondents, for example the National Association of Estate Agents and the Law Society, suggested that a compulsory time limit on single surveys would place financial pressures on sellers particularly in areas where the market is less active.
The Royal Institution of Chartered Surveyors expressed strong opposition to any time limit, noting that a survey is a “snapshot” of the property at the time of the inspection. It also pointed out that there are risks in relying on old information.
The Council of Mortgage Lenders argued that it would be difficult to be prescriptive about a time limit. It expressed the view that in areas where there is a buoyant market, such as Edinburgh, the valuation might change significantly over a three-month period. However, in less active areas a valuation might not change significantly over a six or even a nine-month period.
From our discussions with the parties mentioned above, we are not aware of any changes to these views on this issue. We will work closely with all stakeholders on this and other issues to deliver an effective scheme.
A full report on the consultation can be found at
http://www.scotland.gov.uk/library5/housing/mhphcr-00.asp.