The changes to the ‘Red Book’ – which comprises the rules used by chartered surveyors when making asset valuations – will require surveyors to ask the seller, builder or developer, or selling agents for a copy of any ‘disclosure of incentives’ for the new home property under consideration.

The form, prepared in accordance with guidance from the Council of Mortgage Lenders (CML), will consist of 12 questions which disclose the full details of all financial and non-financial incentives and also details of any third party interest in the transaction.  This change is aimed at help restore confidence in the new-build market whilst helping to improve transparency in the new build valuation process.

The changes will not be limited to the valuation process; CML will make changes to the conveyancing process requiring developers to disclose incentives, and the Home Builders Federation and Homes for Scotland have amended their code to encourage transparency amongst their membership.

These loop holes in the process have been reported as resulting in the increase in the number of frauds, particularly city-centre new-build developments with buyers being left with negative equity immediately after purchase.

RICS spokesperson Barry Hall said:

" This change to the 'Red Book’ will protect the new build market from fraudulent activity. Buyer, lenders and valuers have all been victims of the non-disclosure of incentives by developers with many buyers left with a mortgage worth more than the property’s real value.

" All parts of the property industry are in agreement that standard  must be maintained and that the consumer must be protected from any  disingenuous practice."