Currently, if the developer misses the deadline, the purchaser has to pay a number of extra fees and charges for living elsewhere and holding up others in the chain.
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However, under proposals by Helen Eadie MSP, builders would be forced to foot the bill for all such charges and made more accountable for the deadlines they set.
Eadie said: “This issue was first brought to the attention of the Scottish Parliament through a public petition in 2001. However, despite the best efforts of a number of bodies, entry dates given by developers to the buyers of the new build homes are still not honoured, causing thousands of families considerable expense and inconvenience.”
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Linda Will, managing director of Accord Mortgages, backed the idea. “The market at the minute is a one-way street. If the builder misses the deadline then there is no comeback. If a lender missed a deadline, we would reimburse and pay compensation. Why shouldn’t the builder?”
However, Mary Riley, managing director of Advanced Flexible Self Build Mortgage Limited, said:
“I agree with the proposal, but you have to make some allowance for the builder if they miss the deadline because of factors outside their control.”
