RICS has now published guidance for professionals involved in the valuation of properties in multi-storey, multi-occupancy residential buildings with cladding.
The Guidance Note, 1st Edition March 2021, is intended to help valuers undertaking valuations for secured lending purposes on domestic residential properties in blocks of flats. This follows consultation with the fire safety industry, insurers and lenders, and provides criteria that can be used during a standard valuation inspection to identify buildings where remediation work to cladding for fire safety purposes may materially affect the value of a property and when an EWS1 form is required.
Paul Aylott, Head of Valuation and Business Space Lease Advisory, said: "This guidance should offer clarity about the circumstances when an EWS1 form is needed and hopefully allow lenders to progress loans to purchasers, investors and borrowers much quicker and with less confusion. The complexity around the fire risks of cladding and possible PI liability issues affecting valuers and all those involved in the sector has been a problem over the past couple of years. Hopefully this guidance note from RICS is a step towards clarifying some of the difficult issues involved."
The Guidance Note is effective from 5 April with earlier adoption encouraged. For further information please contact our team on [email protected] or visit www.rics.org.