Responding to the paper on the proposed reforms to the home buying and selling process, CML Scotland says that in some instances mortgage lenders will still require their own valuation to assess levels of lending risk. While many lenders will accept the valuation contained in the single survey, some cases will require lenders to conduct their own valuation - for example, when the surveyor compiling the survey does not meet the criteria set by the lender. This important point has previously been recognised by Communities Scotland but is not mentioned in the current consultation paper. This is a concern for lenders.
CML Scotland also urges Communities Scotland to ensure transparency in the business relationships between estate agents and surveyors. This is essential for home buyers and lenders to have confidence in the single survey, and could be done by disclosing any relationship between the two bodies on the survey document. The failure of transparency between agents and surveyors is a weakness in the proposed reforms which could damage confidence in the new system.
Commenting on the consultation paper, CML Scotland policy consultant Kennedy Foster said: "We are disappointed that our concerns have not been addressed in the Communities Scotland consultation paper. The introduction of the single survey is a massive change to the home buying and selling process in Scotland, and we believe more work is needed to ensure the system is a success.
"Communities Scotland needs to dispel the myth that the single survey will completely replace the need for individual lender valuations. This will not be the case and in its current form the consultation paper sends a confusing message to consumers.
"It is also essential for Communities Scotland to ensure clarity in the business relationships between estate agents and surveyors. This will help give consumers and lenders confidence in the new system, and we are disappointed the consultation paper does not address this important concern."
