June 2006 - Property News with Bruce de Wert Despite the recent wet weather, the sun is shining on the property market at the present time. There is a definite split in the market between "town" and "country", the price of country properties being very much up on this time last year as a result of confidence within the English market. The major demand is for "something with a sea view" and, outside of the renovation market, the prices that they can afford to pay, generally, are in the region of £80,000-£150,000. The local market is also up on last year but the continuing trend of house price inflation outpacing wage inflation has had a serious effect on the first-time buyer's market. Whereas, in the fairly recent past, it was quite possible for someone to buy a two or three bedroomed house as their first home, this is now becoming increasingly difficult. I am finding more and more first-time buyers having to look for smaller properties and, indeed, there is a demand for shared ownership with bodies such as Pentland Housing. In a previous article, I promised to say something further on the question of the much vaunted "Purchasers Information Pack". The packs are "designed" to provide purchasers with more upfront information to assist them in the selection of the future home and to avoid multiple surveys. It will be a legal obligation to provide one at your own expense before you put your property on the market. This has been trumpeted by the Scottish Government as the answer to the "problem" of house selling. The overwhelming feedback to the Government from the professionals was that there was no problem (except in England) and the provision of a pack would just cause delay and expense. The public then voted with their feet during the "trial run" and refused to stump up for the pack. Despite this and, I suspect, under pressure from Westminster where it is also a flagship policy (the English do have a problem to solve although this is no answer), the Scottish Government have bulldozed through the unwelcome feedback and are pushing ahead with an anticipated start date in 2008. It is anticipated that the cost of the English equivalent would be £1000, which is significantly more than the Government had predicted. The benefits that the Government suggests for the pack are that there will be a survey (although not a valuation) and other information about the property. The question is, however, whether you would trust a survey commissioned by the seller? I can't say that I would and in those countries that have this system, it appears that 75% of buyers still go ahead and get their own survey ( which is, I think, only slightly less than now). The big problem that I foresee is the delay inherent in the system. At the moment, a client coming in to see me on Monday, having made the decision to put their property on the market, could reasonably expect to have everything ready and a For Sale sign up at the end of the week or, at least, the following week. This will not be possible under the new system as it will take some time for them to have a survey carried out and prepare all the necessary information such as copies of any planning, listed building consent and building warrants relevant to work carried out on the property, drainage paperwork and suchlike. The comment in England is that it will be about a month. Such delays are unwelcome and will be particularly so for those in financial difficulty. Why can't the government to leave well alone? Anyone who would like to comment or for this column to touch on any particular matter, please email me on bruce.de.wert@georgesons.co.uk. Bruce de Wert has 25 years of experience and is now Principal Solicitor and Estate Agent at Georgesons, Wick and Thurso. < Back to Property News