Housing Improvement Task Force

The Single Survey Pilot

I refer to the previous Journal articles and now write to advise you about the further progress being made by the HITF Single Survey Steering Group, which has held two meetings and will hold further meetings throughout the next few months.

You may recall that the pilot is to take place in Greater Glasgow North and West, Edinburgh North and Leith, Greater Dundee and Inverness and the surrounding areas. These four areas have been chosen because they reflect a diversity of market conditions, e.g. urban, rural, high demand and low demand. The pilot will run for at least eight months and for up to a year if necessary, i.e. if an insufficient number of transactions is generated within eight months.

Here is an overview of some practical matters being discussed relating to the operation of the pilot.

The single survey report

The RICS has prepared a draft of the single survey report and the Scottish Executive has appointed Professor Brian Sloan of Napier University as an external assessor. Professor Sloan will work with Anthony Andrew, the Executive’s Chief Estates Adviser to examine the report developed by RICS and to advise the Steering Group on possible amendments and improvements.

There is still detailed work to be done on the terms of engagement under which the surveyors will operate. The terms of engagement require to be clearly stated at the outset of the transaction so that all parties privy to the contents of the report will be clear about what it covers and who can rely on its contents.

There have also been discussions about the need to ensure a legal transfer of the surveyor’s liability when the property is actually sold, i.e. when the surveyor’s liability to the seller for the contents of the report passes to the purchaser. The Executive is taking legal advice about this matter and it is hoped that the best way of dealing with this will be established shortly.

Project management plans

There are ongoing discussions about the project management plan. Obviously it is important to have a management plan so that the Executive can ensure that the pilot operates to time, is effective and produces the necessary results for the evaluation.

The pilot is being run by Communities Scotland and their research team have now prepared a brief for the pilot evaluation. A number of research contractors have been asked to express their interest in tendering for this work and some four or five companies were believed to be issuing a tender document by the end of November.

It anticipated that the pilot will be web based although there have been discussions about whether or not it is appropriate to have an e-solution, since it has been considered that this might present a barrier to some professionals and thus to some consumers participating in the pilot. However, it has also been acknowledged that a web-based system is likely to be less complicated and more manageable than a paper system. At the time of writing a final decision about how this will be progressed is yet to be taken.

It is obviously necessary to have both quantitative and qualitative assessments of information where the single survey has impacted on the behaviour of sellers, prospective and actual buyers, the professionals and lenders. The results of the pilot are not to be confined to how the “process” has influenced behaviour but are also to assess the impact of the availability of greater information.

Obviously, as I am writing this, the practical details of how the pilot will actually operate have not been finalised but the Steering Group is well aware of the fact that it is necessary to communicate practical information to the public and profession in the pilot areas as soon as possible. I have concerns about the lack of detail available at the moment but can assure you that Stewart Brymer and I, the Society’s members of the Steering Group, have raised these concerns and are pressing for the details to be finalised as soon as possible. When we know more I will write to the individual firms in the pilot areas to explain the position.

Purchasers’ information packs

As I have previously mentioned, it was broadly agreed at earlier Steering Group meetings that the PIP would follow on as a natural consequence if the single survey was a success, and the decision is still to be taken about whether and when to pilot PIPs. The Society’s view is that these should be piloted so that we can establish and iron out any problems before PIPs are introduced.

Raising awareness

At the last Steering Group meeting members reported their views on the current state of “awareness” of the relevant professionals in the pilot areas and commented on what action could be taken and had already been taken. It was agreed that a communications strategy would be necessary to ensure a coordinated approach. The Executive will be organising meetings with the RICS and the Law Society of Scotland etc in order to further this.

It is anticipated that the Scottish Executive will issue various press releases, a leaflet or newsletter will be produced for distribution to the professionals in the pilot areas and there will then be regular updates linked to features in the local press, property papers and supplements and radio and television. There will also be local meetings for professionals involving the Scottish Executive, the Society and the RICS. It is anticipated that the Solicitors’ Property Centres network will be used to disseminate information to the profession and public.

By the time you read this you should, if you are in the pilot areas, have received a letter detailing the position so far. I anticipate that we will continue to write to firms on a regular basis to update them and that we will be visiting the pilot areas as soon as possible after the New Year once the fine detail of how the pilot will operate is available.

Paying for survey copies and distribution

At this moment there has been general acceptance amongst the Steering Group members that access to the survey by prospective buyers should ideally be free (although the eventual purchaser who uses the survey would ultimately be expected to pay). There are obviously issues around meeting the costs of producing and distributing copies particularly where there is a good deal of interest in a property; there is also an issue about controlling/monitoring access to the survey for a number of reasons. These issues are going to be further discussed at the next Steering Group meeting, as we perceive them to be vital to the process.

I hope this gives you a flavour of the discussions at the Steering Group. I have indicated that Stewart and I have concerns about the timescale, the practicalities of how the pilot will operate and the practical and cost implications for the SPCs and the solicitors’ firms involved. We have already had meetings with the SPCs in the pilot areas and will be meeting with them again shortly for further discussions. If you have any questions or concerns or simply wish to make any comments I would be happy to hear from you. Your input is important. Please email me at linseylewin@lawscot.org.uk or telephone me on 0131 476 8174.

Linsey J Lewin, Secretary, Conveyancing Committee