Although it’s not unusual now for flats in London to cost over a million pounds, few of us bother with a survey when we buy. According to the Royal Institution of Chartered Surveyors, only 20% of people buying any kind of property get a survey. Yet 6.3 million UK homes fall beneath the government’s decent homes standard. And one of the DCLG’s original arguments for the Home Information Pack was that it would improve standards because it contained a compulsory survey, the Home Condition Report.
The HCR is now voluntary – too expensive, and not enough qualified Home Inspectors. The DCLG says it still hopes to make it mandatory eventually. But the real focus was always on the Energy Efficiency Certificates, which continue to be mandatory and enable the government to comply with an EU directive at the property seller’s expense.
So most homebuyers will continue to rely on their mortgage lender’s valuation. It’s a much cheaper option – for instance, Halifax charges £240, and Barclay’s £355 on a £250,000 property, while both ask close on £1,000 for a full Building Survey. But, although you pay for it, the valuation’s purpose is to reassure the lender the property represents security for the loan. It will pick up on glaring defects, like subsidence or serious damp, but that’s as far as it goes.
Some estate agents would argue you don’t need a survey for a flat – if there are major works in the offing, your solicitor will spot this during conveyancing. And you can see for yourself whether the flat itself and the common parts are in good repair. But that can be risky. Supposing the management company hasn’t got round to the leaking roof yet? Supposing the immaculate decor is covering up dodgy wiring? And if you’re paying hundreds of thousands wouldn’t you like to know whether impact noise from the flat above is going to drive you crazy?
The RICS Homebuyer’s Report and Valuation costs less than a Building Survey, although, like the ill-fated HCR, it is done to a format and won’t, for instance, give you a detailed report on the roof. But you can commission a surveyor just to check out a particular problem like noise or wiring.
A survey is a useful negotiating tool. And property prices have risen faster than surveyors’ fees. A few hundred pounds buys you a lot of peace of mind when you’re shelling out many thousands.
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