Homebuyer compensation for false claims

Wimpey has been fined for misleading homebuyers

A group of homeowners have won compensation from Scotland's biggest home developer, after a court ruled it misled them by claiming a council estate near their homes was soon to be demolished.

The ruling is Scotland's first successful claim under the 1991 Property Misdescriptions Act, which aims to protect housebuyers against misleading claims during a property sale.

The developer, Wimpey Homes, and its salesperson have been ordered to pay a fine of £3,500 and £750 respectively.

The victory is expected to open the way for further civil action against the group.

Demolished

The homeowners, who live on the upmarket Avonlea Gate estate in Hamilton, were told by a Wimpey Homes salesperson that the Scottish Homes estate, situated adjacent to their homes, would be demolished by the end of 1999.

The action was brought by five couples, all of whom had bought homes at Avonlea Gate.

They said their belief that the estate was to be removed had been a major factor in their decision to purchase property at Avonlea Gate.

The court heard that in fact there were no plans to demolish the estate and that the salesperson was merely relaying a rumour.

Important factor

In sentencing the firm and its salesperson, Sheriff Lewis Cameron said: "These representations were clearly a very important factor in the buyers' decision."

The judge ruled that he was satisfied that the Wimpey salesperson had misled the homebuyers, despite the fact that the assurances were verbal.

In a statement Wimpey Homes said: "George Wimpey regrets any belief on the part of any residents at Avonlea Gate that they have been misled as to the future of the demolition of the neighbouring Scottish Homes Orlit properties."