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The Royal Institution of Chartered Surveyors (RICS) have recently announced that they are removing rental figures from Home Report valuations. Whilst this does not have an impact on the majority of house purchasers, it does have an impact on property investors who are taking out mortgages. Mortgage lenders involved with buy-to-let transactions will now be insisting upon property being re-surveyed and will not accept Home Reports. This is another example of where Home Reports are, in my opinion, a waste of money for sellers and lead to extra expense and administration in the process. I would urge the Scottish government to remove the compulsory nature of Home Reports or at the very least remove the valuation aspect of it.
Partner – Head of Property
Postscript: I have recently purchased a property for a client which is in a very good area but it had been languishing on the market for a considerable time. On investigation, we discovered the asking price had been set too high. Interestingly, the asking price was the same as the Home Report valuation which was around 10% too high and the market reinforced this view. Whether this valuation was a case of the surveyor getting it wrong or manipulation from sellers or their agents is another matter. A blog will follow shortly.