House hunting can be frustrating, exhilarating and sometimes both at the same time, but there are few feelings better than stepping into a property and immediately feeling a connection.
Our role as advisers is to guide borrowers towards the most sensible decision for their circumstances before buying a property. This includes having a frank conversation about the importance of home surveys in uncovering potential defects, which can be particularly common in the UK, since we have a large volume of ageing housing stock.
An ageing housing stock comes with potential issues
The evidence is undeniable: the UK has the oldest housing stock in Europe.
Recent analysis by the Resolution Foundation suggests that 38% of UK homes were built before 1946 – more than any other European country. In comparison, only 21% of homes in Italy and 11% in Spain were constructed before the end of the Second World War.
Many older properties were built to last, using durable materials and sturdy foundations – but the reality is that they often have poor insulation. This can lead to greater heat loss compared to modern homes, generating higher energy bills. It can also increase the likelihood of damp, which, if left untreated, can cause further issues.
Mind over mortgages: why we need to look after intermediaries’ mental health
Sponsored by Halifax Intermediaries
Dampness in properties can take many forms, from condensation to penetrating and rising damp. While moisture penetration can affect brick and mortar, it is particularly dangerous for wooden structures, such as joists and floorboards, which can rot if not treated or protected from damp.
In the specific case of an older property, borrowers may also be concerned about asbestos. Many will remember artex, a textured finish for ceilings that was all the rage in the 1970s and 1980s. Unfortunately, before asbestos was banned from use in UK construction projects in 1999, some artex was supplemented with asbestos fibres.
If a homeowner was to try to remove the artex, or any other products containing asbestos, it could release asbestos into the air, posing potential health risks. This is but one of many possible issues that a home survey could detect.
The value of a home survey
As advisers, it is our responsibility to ensure borrowers have access to the right information and tools to make an informed decision before buying a home. When a borrower is interested in buying an older property, it is particularly important that they commission a home survey.
However, recent reports reveal a concerning trend – just 10.6% of UK homebuyers opt for a home survey to support their purchase, despite it being the largest financial commitment most people will ever make.
A home survey is a bare minimum piece of due diligence. Conducted by a Royal Institution of Chartered Surveyors (RICS) qualified professional surveyor, it will offer a comprehensive overview of the entire property, uncovering issues that may have otherwise gone unnoticed.
And while the upfront cost may seem an unnecessary expense, especially if the borrower is already close to their maximum spend, an investment of a few hundred pounds could save thousands in the long run. A survey also offers the opportunity to negotiate a lower purchase price or avoid a problematic property altogether. While often viewed as optional, surveys should be discussed as an essential element in the house buying process.
Ultimately, while the UK’s ageing housing stock does pose a challenge, this is not insurmountable by any means. In our current market, advisers can help borrowers to assess the liability of buying an older property by opening up a dialogue about a home survey early in their home buying journey.
A home survey is the best way to protect consumers from the potential financial challenges of an older property – and, most importantly of all, it will help navigate the borrower towards a positive buying outcome. It deserves a prominent place in the advice conversation.
