RDC0010

 

 

Written evidence submitted by UK Finance

 

Introduction

UK Finance is the collective voice for the banking and finance industry. Representing more than 250 firms, we act to enhance competitiveness, support customers and facilitate innovation.

 

We welcome the opportunity to submit written evidence on cladding remediation to the Public Accounts Committee.

 

Key points

1)      Mortgage lenders want and need to ensure that home buyers are purchasing a property they can afford, is secure, and maintains its value. Part of the home-buying and most remortgaging processes will include an independent valuation of the property that considers costs associated with cladding.

 

2)      It is clear many buildings with cladding on them will need remediation work to ensure that they are safe. The identification of these buildings, what work is required, when it will be carried out and how it will be funded needs to be taken into account in the valuation process.

 

3)      UK Finance has worked, and continues to work, with RICS and a wide range of other stakeholders on the process for the valuation of properties in buildings with cladding on them to reflect current information available on the risks associated with certain types of materials.

Mortgage valuations

 

 

 

 

Cladding on high-rise buildings

 

 

 

 

 

EWS1 forms including the number of experts available and challenges within the professional

indemnity insurance market. We are willing to work with government and other stakeholders to help resolve these issues.

 

Under 18m buildings

 

 

 

Funding remediation work

cause issues for residents in blocks of flats. The fund does not cover buildings below 18m, which may exclude some buildings in need of urgent remediation; the fund does not cover the inspection of buildings to assess whether they need remediation which could cause a delay in the assessment taking place; and the fund does not cover works needed as a result of remediation, for example where additional safety issues with the building have been identified as a result of the removal of unsafe cladding.

 

inform valuers and lenders about the impact remediation has on the value of an individual property.

 

     July 2020

3

 


[1] https://www.rics.org/uk/news-insight/latest-news/fire-safety/new-industry-wide-process-agreed-for-valuation-of-high-rise-buildings/