Buying a house is the most substantial transaction any of us are likely to make. It is also a transaction which involves a certain amount of risk, because the house you’re buying may have faults which you won’t spot, including hidden defects that are not immediately visible to buyers. That’s why a professional survey is so important – to tell you about problems which need fixing.
To help you understand the role of surveys, in this article, we look at:
- what a survey involves
- the risks of buying property
- surveys for new builds
- surveys for cash buyers
- mortgage valuations
- surveys for sellers
- the importance of surveys
What is a house survey?
A professional house survey is an assessment of the condition of a property according to the standards set down by the Royal Institution of Chartered Surveyors (RICS). The type of survey you choose depends on the property and your needs. A RICS survey can only be carried out by a qualified surveyor or property surveyor, which ensures that professional standards are followed. You can use any surveyor, but choosing a local surveyor can provide valuable area expertise.
Types of surveys
When buying a house, understanding the different types of surveys available is key to making a confident and informed property purchase. A house survey, carried out by chartered surveyors who are members of the Royal Institution of Chartered Surveyors (RICS), provides an expert assessment of a property’s condition and can highlight issues that may not be immediately obvious.
The RICS Home Survey is one of the most widely recognised options, offering a structured and professional review of the property. The Royal Institution of Chartered Surveyors sets the standards for these surveys, ensuring that buyers receive reliable and consistent information. Whether you are a first-time buyer or experienced in the property market, choosing the right type of home survey can help you avoid unexpected costs and make sure you are paying a fair price.
RICS chartered surveyors offer several levels of home survey, each designed to suit different types of properties and buyer needs. The choice of survey will depend on factors such as the age, condition, and construction of the property, as well as your own concerns as a buyer. By selecting the appropriate survey, you gain valuable insights into the property’s structure and condition, supporting a smoother buying process and giving you peace of mind as you move forward with your property purchase.
There are three levels of RICS survey, designed for different types of property.
Home Survey (Level 1) is the most basic report, now formally known as a condition report, and provides a short overview of a property’s condition, risks, and urgent defects. Level 1 surveys are suitable for newer homes built with common building materials and in reasonable condition.
Home Buyer Report (Level 2), also called a home buyer’s survey or homebuyer report, takes a more detailed look at the inside and outside of the building, records any defects, and includes inspection of roof spaces. Level 2 surveys are usually the right choice for a conventional property in reasonable condition, typically built after 1900, as long as they haven’t been empty for a long time.
Building Survey Report (Level 3), also known as a RICS Building Survey, is the most comprehensive survey. It involves an in-depth inspection of as much of the property as is physically accessible, including roof spaces, with the findings reported in detailed information. Level 3 surveys are advised for homes built before 1900, or if they are listed, renovated, or built from unusual materials, and are the most comprehensive survey for older or complex properties.
After these, the RPSA Building Survey and RPSA Home Condition Survey are alternative options provided by the Residential Property Surveyors Association, recognised for their consumer-friendly formats.
You can also add a market valuation report to a Level 2 or Level 3 survey, which includes the market value and insurance reinstatement figure. Both of these types of surveys can also help in price negotiations.
Most property surveys use a traffic light rating system to indicate the condition of different building elements.
There is no legal requirement to have a survey when you buy property, but you need to understand the implications if you decide that you won’t have one. Survey costs vary depending on the type and level of survey chosen.
The importance of a house survey
Your interests are also protected by a survey. Before the survey is conducted, make sure to communicate any particular concerns you have to your surveyor so these issues can be thoroughly assessed. Without one, you may be buying a home with many problems, which could cost a small fortune to put right. In other words, without a survey, you are at risk of overpaying for your new home. Remember that once the sale contract is signed, there is no comeback to the seller. The decision to part with your money is yours alone, and the risks are yours too.
Is a survey necessary?
Unless you already have the funds to buy the property, you’re likely to be required by your mortgage lender to have one. An estate agent may recommend a surveyor, but buyers should always do their own research to ensure independence. It is usually a condition of the loan that the property is professionally surveyed to protect the interests of the lender, since they own a share of the property until the mortgage is paid off. In such cases, a survey is an unavoidable necessity.
The risks of not having a survey
What can go wrong with a property? The answer is, a lot. The main structure is the biggest issue, and whether it is sound and fit for purpose. Building standards in the UK are reliable, but there are always exceptions. Older properties in particular may have become unsound due to deterioration in roofs, walls or even foundations with the possible culprits including subsidence, poor materials or bad workmanship. There may also be deterioration from the long term effect of damp of tree roots. The more serious the problem, the higher the cost to put it right.
A key risk of not having a survey is missing urgent defects – serious issues that require immediate attention and could have significant financial or safety implications if left unaddressed.
Even more minor problems can leave homebuyers out of pocket, such as rotten window frames or floor boards, or faulty electrics and other services. You need to know about issues such as these, and many others, before you commit to buying. If you don’t there’ll be no-one else to pick up the bill except yourself.
Do I need a survey for a new build?
Construction in the UK is legally required to meet the standards of Building Regulations set down by the National Housebuilding Control Council (NHBC). With NHBC certification, developers can provide reassurance to buyers that their new home meets the requirements for all aspects of the building, including:
- Structural safety
- Fire safety
- Site preparation
- Toxic substances
- Resistance to sound
- Ventilation
- Sanitation
- Drainage
- Access
- Electrical safety
- Workmanship and materials
For new build homes, it is important to have a snagging survey carried out to identify any defects or compliance issues before completing the property transaction. Ideally, the snagging survey should be carried out before you exchange contracts, as this gives you greater negotiating power with the developer to ensure any issues are addressed before you commit to the purchase.
NHBC certification allows buyers to proceed in confidence. From a survey point of view, however, it is always advisable (and usually obligatory for borrowers) to also have a RICS level one survey. With an NHBC certificate and a Level 1 Home Survey, buyers can proceed without worrying that there are any significant problems with the property.
What can building surveyors find on new-build house surveys?
In a Level 1 survey, surveyors will carry out a visual inspection and report on the general condition of the property. Note that the report will not include advice on repairs.
Home survey reports provide buyers with a clear summary of the surveyor’s findings and recommendations.
What surveyors look for in new homes
The details covered will include windows, exposed floors, the roof space (viewed from the hatch) and an external visual assessment. While the survey won’t be comprehensive, it will be carried out by an experienced professional who will be on the look out for any evidence of defects. If any are seen, the survey report will recommend further investigation.
Issues found in new build homes
Possible defects in new builds could be cracks in walls, gaps in roofing, windows which don’t open and close properly or are draughty, and floors which don’t run properly up to walls. Minor issues such as minor cracks in internal plaster from settlement, or damaged surfaces on access roads and paving, can be taken up with the developer and will normally be put right. Some surveys may also assess broadband speed to provide buyers with information about the property’s connectivity.
Do you need a survey if you are a cash buyer?
There is no obligation, legal or otherwise, to have a survey when you buy a property with cash. However, understanding the house survey cost is important for cash buyers to budget appropriately. But that doesn’t mean you shouldn’t.
Why cash buyers should have a survey
The risks of a property purchase don’t change, however you fund it. Any problems that come with your purchase are yours to put right, with all the attendant costs. Compared to the cost of property, the outgoings for a Level 1 Survey are relatively small – typically starting from a few hundred pounds depending on the property and survey type. In return, you potentially save many thousands of pounds, and, just as importantly, buy a significant amount of peace of mind.
There is no difference between a RICS survey for a cash buyer and a mortgage buyer. It’s not the way you pay for a property that matters, but the type of property.
If you’re buying a more expensive or older property, a Level 2 or even a Level 3 survey may be the right option. Prices will be higher, but then so will the amount you are spending, as well as the scale of potential problems. A survey is always money well spent.
Is a house survey different from a mortgage valuation?
Yes, very different. Mortgage valuations are used to verify the value of the property. They are used by lenders to make sure they are not lending money on a property which is worth less than the sum borrowed. Buyers can also have a valuation report undertaken by their surveyors to check they are paying a fair price for the property, and potentially to use as a negotiating tool.
A house survey report provides a detailed assessment of the property’s condition, highlighting any potential issues and offering recommendations for repairs or further investigations. This is different from a simple valuation, which only estimates the property’s market value.
By contrast, a survey is undertaken on behalf of homebuyers to protect their interests, even if they are required by the lender. Survey reports are given to homebuyers and are usually also required by lenders. RICS surveys also conform to set standards and layouts, including the use of a traffic light system to provide a quick overview of the report.
Do I need a survey to sell a house?
Homeowners are not legally required to provide a survey when they sell a house. However, surveys are a very good way of establishing the property’s condition for both sellers and buyers, as well as validating the asking price.
Sellers are perfectly able to commission a survey as an aid to selling the property. The survey can be shared with prospective buyers and can justify the asking price. A survey can also head off any request for a price reduction. Since all RICS surveys comply with the same professional standards, buyers can take them as an objective assessment of property condition.
If any problems are revealed in a seller’s survey, an open, honest approach with a realistic attitude to the selling price can also help the sale to proceed. If the survey comes before the house goes on the market, sellers have the very real advantage of either fixing problems or factoring in the costs into the asking price.
The case for buyers to have the reassurance and security of a survey is clear. Surveys are an effective form of financial protection, as well as a route to buying with confidence. The same is true for all types of property, including new builds, and whether you are a cash buyer or borrowing from a mortgage lender. Sellers, too, can benefit significantly from having a survey to help the selling process and price negotiation run smoothly.
The costs of a survey, especially for any cash-strapped buyers, may seem unattractive, but the cost of not having a survey could be astronomically higher. The risk simply isn’t worth taking.
