Property Surveys
Once your mortgage is approved and you receive an accepted offer on a property, there are still important steps to take before finalising the deal. One crucial task is arranging for property surveys. If you need help deciding whether to proceed with a property survey, here at Connect Mortgages, we offer valuable insights to help you make an informed decision. This article delves into the different types of property surveys available and whether they are worthwhile investments.
In a previous article, we emphasised the significance of obtaining property surveys for potential property buyers. We covered essential points, such as the ability of property surveys to uncover hidden defects, offer financial protection, and provide long-term peace of mind. It’s important to revisit these points before delving further into this topic, as we now focus on the costs associated with property surveys and debunking the misconception that property surveys are unnecessary expenses.
After all, being prepared with knowledge is empowering. Selecting the right survey will help identify significant problems and inform you about specific risks before committing to the property buying or selling process.
What are the three primary types of property surveys?
To simplify matters, there are three main types of property surveys, and they should only be conducted by fully qualified surveyors affiliated with the Royal Institution of Chartered Surveyors (RICS), the industry’s most esteemed surveying authority.
Level 1: Condition Report (RICS)
- Property Type: A newly constructed or modern house without visible signs of damage.
- Price: Ranging from £250 to £350. This price covers the surveyor’s visit to inspect the property, create a condition report and its delivery to you.
What to expect from a Level 1 condition report
An RICS Level 1 Condition Report is the most basic and affordable survey option when assessing property surveys. It provides a brief overview of the property’s condition. The surveyor will examine the property’s interior and exterior, potentially utilising tools like a damp meter. However, they will not move furniture or floorboards.
Using a traffic light system, the surveyor will create a condition report. Each part of the property will be assigned a red, amber, or green rating based on its condition and any urgent attention required. 
The report will also highlight any potential risks or legal issues that may cause problems in the future. Communicating these matters to your solicitor or conveyancer, such as approvals for extensions or boundary ownership, is important.
However, it’s important to note that you cannot seek additional advice from the surveyor based on their report. Therefore, this type of survey is more suitable for newer properties. For older properties, a HomeBuyer Report may be preferable.
Level 2: HomeBuyer Report (RICS)
- Property Type: Suitable for most homes in reasonable condition.
- Price: There are two types of RICS HomeBuyer Reports. The first is a HomeBuyer Report (survey only), starting from around £350. This price covers the surveyor’s inspection, the HomeBuyer Report (survey only) creation, and its delivery to you. You can also consult the surveyor for clarification on any aspect of the report.
The second option is a HomeBuyer Report (survey and valuation), which includes an additional valuation of £100 on top of the property survey cost.
What to Expect from These HomeBuyer Surveys
An RICS HomeBuyer Report (survey only) provides more detail than a Level 1 Condition Report. It includes assessing potential structural or subsidence issues in addition to the information covered in a Level 1 report. Common problems like damp and rot will be addressed, but the surveyors will not conduct intrusive inspections, such as under floorboards or behind large furniture, limiting their findings.
An RICS HomeBuyer Report (survey and valuation) includes everything from the survey-only report and a property valuation. This type of survey can provide a more accurate valuation and leverage for renegotiating the asking price if there are significant differences between the survey valuation and the estate agent’s valuation.
Level 2: Home Condition Survey (Sava or RPSA)
Property Type: Suitable for slightly older homes in reasonable condition.
Price: Starting from around £450. This price includes the surveyor’s inspection, the creation of the Home Condition Survey, and its delivery to you. You can also request a debrief with an RPSA surveyor to address any questions you have about the report.
What to expect
While the previous surveys are offered by RICS, the Home Condition survey can be provided by either the RPSA or Sava. The main difference lies in the independent quality-checking process for these reports. They are considered more user-friendly, featuring pictures and numbered or colour-coded ratings for each part of the property. Additionally, an RPSA surveyor will provide a debrief to answer any questions you may have.
Level 3: Building Survey (RICS)
- Property Type: Suitable for old properties, rural properties, unusual properties, or properties showing visible signs of damage.
- Price: This survey is the most expensive, starting from approximately £600. The exact cost depends on the property’s type and size. It covers the surveyor’s inspection, the creation of the Building Survey report, and its delivery to you.
You can also seek advice from the surveyor regarding their findings, which can be helpful in estimating the costs of renovation and repairs.
What to expect:
The RICS Building Survey, also known as a ‘full structural survey’ or ‘full building survey,’ is the most comprehensive option available. Although it does not include a valuation, it provides a detailed inspection of the property, identifying any structural issues and necessary remedial work. The report will also outline potential consequences if major repairs are not undertaken.
What are the associated costs of a survey?
The cost of a survey depends on three main factors:
- Type of survey selected.
- Property value.
- Property location.
To obtain precise costs, many surveyors offer an online survey calculator to perform the necessary calculations.
Is a survey worth the expense?
Now, for the pivotal question: Is a survey a worthwhile investment? As previously outlined, a survey helps potential buyers become aware of any existing issues or future problems that may arise. It can also equip buyers with essential information to renegotiate the purchase price if significant concerns and potential costs are identified.
It’s important to note that the choice of survey type, or whether to have one at all, remains the purchaser’s prerogative. However, not having a survey or opting for an insufficient level of survey can lead to expensive issues upon completion.
While an initial cost is associated with obtaining a survey, it provides long-term peace of mind and helps avoid unexpected expenses. Ultimately, it’s an investment that offers assurance for the future and safeguards against potential financial burdens.
Understanding your survey report
Regarding property surveys report, RICS (Royal Institution of Chartered Surveyors) utilises condition ratings to convey their findings on different aspects of the property.
The three condition ratings are as follows:
- Condition Rating 1 – No repair needed.
- Condition Rating 2 – Defects that require repair or replacement but are not considered serious or urgent.
- Condition Rating 3 – Serious defects that demand immediate repair, replacement, or investigation.
What if the survey reveals a problem?
Most surveys, particularly for older properties, tend to uncover some issues. Discussing the findings with your surveyor and inquiring about the potential costs of addressing any problems is essential.
In certain cases, the surveyor may recommend a more detailed survey to investigate a specific issue, such as damp or dry rot.
Once you have this information, you can make a decision on how to proceed. Options include:
- Contacting a builder to obtain a quote for significant repairs.
- Renegotiating the asking price.
- Requesting the seller to fix the issues before completing the sale.
- Withdrawing from the sale altogether if you have concerns about the problems identified in the survey.
- It’s important to note that you are not obligated to proceed with the sale if you have reservations about the issues discovered during the survey.
Property surveys in Scotland
House survey regulations in Scotland differ from those in other parts of the UK. In Scotland, a house seller is required to provide potential buyers with a Home Report, equivalent to a Level 2 Survey.
The Home Report offers a detailed overview. However, you might still want to consider a full structural survey for older, unusual, or poorly maintained properties.
What is a Home Report in Scotland?
- A Home Report provides essential information about the property.
- The seller is responsible for covering the cost of the Home Report.
- It must be made available to interested buyers within 9 days of listing the property for sale.
The Home Report comprises three parts:
- Single survey and valuation: The single survey and valuation involve a visual inspection by a chartered surveyor. It provides details about the property, its condition, accessibility, and any necessary repairs. If repairs are identified, obtaining quotes from builders before proceeding is advisable. If the repairs seem unmanageable, you have the option to withdraw without incurring penalties. The survey also includes a property valuation.
- Property questionnaire: The property questionnaire covers 16 different categories, offering additional information about the property. This includes the council tax band, any past issues like fire or storm damage or the presence of asbestos, details of alterations made (including specialist works and guarantees), and any notices that may affect the property.
- Energy report: The energy report provides information on the property’s energy efficiency in the form of an Energy Performance Certificate (EPC). It indicates the property’s energy usage and provides average heating, lighting, and hot water costs. The EPC also offers advice on making the property more energy-efficient to reduce fuel expenses. Additionally, it rates the property’s environmental impact in terms of carbon dioxide emissions.
Is it mandatory to have property surveys when purchasing a home in the UK?
When it comes to property surveys, there is no legal requirement to conduct a property survey when buying a property in England, Wales, or Northern Ireland. However, it is highly recommended to do so. Property surveys can provide significant benefits, saving both time and money in the long run while helping you avoid unpleasant surprises.
For instance, if you opt to forgo a survey and later discover that the house requires a new roof, you could face substantial costs that could have been avoided if the issue had been identified prior to purchase. In such cases, you may attempt to negotiate a lower sale price or request the seller to address the problem before completing the transaction. 
If all else fails with the property surveys, you can withdraw your initial offer and walk away from the sale.
Considering the relatively low cost of a survey compared to potential expenses after signing the contracts, obtaining a survey is undoubtedly a wise decision during home-buying.
