The Royal Institution of Chartered Surveyors says the controversial findings of an insurance firm’s research shows that millions of homeowners may be mistaken in relying on lenders’ valuations when in reality they should be commissioning their own surveys.
Yesterday we reported a claim by Churchill Home Insurance that estimated some seven million cost-conscious owners may have chosen not to have a survey - with half of them regarding a mortgage valuation as being sufficient to reassure them to proceed.
Using historic data, the firm claims that while more owners are now having at least a base level survey, the number of owners having the comprehensive building survey has reduced significantly from 28 per cent 20 years ago to just six per cent in the last 12 months.
RICS has now picked up on this, saying “if ever there was a subject needing mythbusting, this is it.”
The institution goes on to say that lenders obtain some valuations at their desktops without visiting. “The message is clear; a home is the most expensive purchase you will ever make and going down a cheaper route will be a false economy if works are required” it says.
Last month we reported that RICS was introducing a new HomeBuyer report without a valuation, with the same components as the traditional report - including colour-coded condition ratings, comments on defects and advice on repairs - but without the valuation and reinstatement cost.