NEW INDUSTRY-WIDE PROCESS AGREED FOR VALUATION OF HIGH-RISK BUILDINGS
The Royal Institution of Chartered Surveyors (RICS), The Building Societies Association (BSA), and UK Finance have today agreed a new industry-wide valuation process which will help people buy and sell homes and re-mortgage in buildings above 18 metres (six storeys).
The industry is also encouraging the owners of these buildings to proactively pursue independent testing of external wall materials to safely speed up the process for buyers and sellers.
RICS have been leading a cross-industry working group to consider best practice in the reporting and valuation of tall buildings within the secured lending arena, to agree a new standardised process. This will be used by valuers, lenders, building owners and fire safety experts in the valuation of high-rise properties, with actual or potential combustible materials to external wall systems and balconies.
This is endorsed by RICS, UK Finance, Buildings Societies Association, IRPM and ARMA. MHCLG are supportive of the approach.
Mortgage approval, valuation and insurance on high rise blocks of flats that have external walls consisting of potentially combustible material have been causing difficulties across the market, and has been impacting transactions.
RICS has an important leadership role to play in this area, acting in the public interest and utilising the expertise of our professionals to solve critical issues in the market.
The new External Wall Fire Review process will require a fire safety assessment to be conducted by a suitably qualified and competent professional, delivering assurance for lenders, valuers, residents, buyers and sellers. The Review has been developed through extensive consultation with a wide range of stakeholders.
Only one assessment will be needed for each building and this will be valid for five years.
RICS are issuing this notification, to create consistency in the process and reporting of the valuation of tall residential buildings over 18m, with external wall systems comprising potentially combustible material. This is to combat issues in the valuation and sale of buildings in this category.
FIND OUT MORE ON THE RICS WEBSITE BY CLICKING HERE