Newsbriefs

Citation

(2012), "Newsbriefs", Structural Survey, Vol. 30 No. 5. https://doi.org/10.1108/ss.2012.11030eaa.002

Newsbriefs

Newsbriefs

Article Type: Newsbriefs From: Structural Survey, Volume 30, Issue 5.

Which advice on house surveys

Keywords: Advice, Consumer, Homes, Purchase, Surveys

The consumers’ association Which has offered positive advice on the employment of a surveyor by home buyers: “It's essential to get a survey carried out when you have an offer accepted on a property to find out about the condition of the building and make sure that it's worth the price you have offered. It can help you negotiate money off if there is costly work that needs to be done and also help you to budget for any future repairs that might be needed.

You will have to pay for a mortgage valuation in order to secure a mortgage offer but this should not be confused with a survey. The mortgage valuation merely confirms to the lender that the property is worth at least what it is lending you – it is not its responsibility to point out any repairs that need doing. You should take the cost of the valuation into account when choosing a mortgage”. The advice then goes on to describe the Homebuyer's report, the Building survey, the Home condition survey and the New-build snagging survey. A recent consumer survey suggests that, of mortgage customers purchasing surveys, 10 per cent had a RICS Building Survey, 30 per cent opted for the new RICS Condition Report and 60 per cent opted for the RICS HomeBuyer report.

Homebuyers are being refused mortgages due to “free” solar panels

Keywords: Home buyers, Mortgages, Photovoltaic panels

At a time when many prospective buyers are struggling to secure the necessary finance to purchase a new home, they are hitting further difficulties with banks and building societies refusing to lend on properties with roofs leased for the use of “free” photovoltaic panels. These panels are installed by solar companies for free who then sell any extra energy generated back to the grid under the UK government's feed-in tariff subsidy. These schemes are usually based on leases of 25 years for use of the roof space, which requires the prior approval of the mortgage lender, which many lenders are refusing to give.

New rules of measurement

Keywords: Cost, Measurement, Rules

RICS new rules of measurement allow for more accurate advice leading to a clearer picture of construction costs, more efficient process and greater scope for potential costs savings.

This will lead to a better understanding of costs during the construction process and operational use of the building, making it easier to reduce these costs and increase certainty of business planning. This will help save money in the delivery of a construction project.

It also provides the basis for government to establish and analyse the costs to help reduce spending on individual projects and allow for more projects to be delivered within restricted targets.

UK economic outlook

Keywords: Construction, Economy, House sales, Trends

RICS advise that growth expectations are continuing to be scaled back as the gloom surrounding the euro crisis deepens. They recommend channelling quantitative easing funding directly into the construction and housing sectors to generate a more meaningful boost for an economy desperately in need of a driver. They report that there is certainly precious little comfort to be derived from the real estate sector at present. The latest RICS Housing Market Survey showed a worsening trend in price expectations with the agreed sales net balance painting its second consecutive negative reading. Meanwhile, data from the British Bankers’ Association indicate that the number of mortgage approvals for house purchase in May 2012 slipped to its lowest level in more than a year. The second quarter RICS Commercial Property Market Survey continues to contrast the mood in the capital, particularly central London, with the rest of the country. The April reading on construction output from the Office of National Statistics suggests no speedy rebound from the very weak first quarter number is likely.

Professional indemnity insurance (PII) for valuations in the UK

Keywords: Insurance, Negligence, Valuations

The most serious financial crisis for decades is still causing significant instability in many markets. In response to the crisis, RICS set up a Working Group to undertake a review of the impact on the property sector because of concerns that have arisen in the UK valuation sector about current risk and pricing in the market, and that these issues may have a long-term structural impact on that sector once the current crisis is over. The report of the Working Group summarises the implications of the issues surrounding valuations for secured lending purposes in the UK for all stakeholders and sets out recommendations for further work. The report is available at: www.rics.org/site/scripts/download_info.aspx?fileID=12057