Question 1

What types of survey are available when buying a property?

Accepted Answer

There are three main types of survey available to property buyers in the UK, broadly aligned with RICS (Royal Institution of Chartered Surveyors) survey levels. A RICS Level 1 survey — also known as a Condition Report — provides a basic assessment of the property's condition using a traffic light rating system. It identifies urgent defects but does not provide detailed advice and is only suitable for newer, conventional properties in good condition. A RICS Level 2 survey — commonly known as a Homebuyer Report — is the most widely used survey type. It provides a more detailed assessment of the property, identifies defects that may affect value, and flags items requiring repair or further investigation. It also includes a market valuation of the property. A RICS Level 3 survey — the Building Survey, formerly known as a Full Structural Survey — is the most comprehensive and is recommended for older properties, properties of non-standard construction, those in poor condition, or where significant works are planned. In addition to these purchaser-commissioned surveys, lenders conduct their own mortgage valuation for their own purposes, which is separate from and should not be confused with a buyer's survey.

Question 2

What is a mortgage valuation and does it protect the buyer?

Accepted Answer

A mortgage valuation is an assessment commissioned by the lender — not the buyer — to satisfy the lender that the property provides adequate security for the loan. Its purpose is to confirm that the property is worth at least the agreed purchase price and is mortgageable (i.e. of standard construction, in a habitable condition, and not subject to issues that would make it unsuitable as security). A mortgage valuation does not protect the buyer. It is not a survey; it does not identify defects, structural problems, or items requiring repair. It is a narrow check conducted for the lender's benefit, and the buyer typically has no legal recourse against the valuer if the valuation misses a serious defect — the valuer's duty of care is to the lender, not the purchaser. In many cases, the buyer pays the mortgage valuation fee but receives little or no benefit from it. Buyers should always commission their own independent survey in addition to the lender's valuation if they want a meaningful assessment of the property's condition.

Question 3

What is a homebuyer report (RICS Level 2)?

Accepted Answer

A RICS Level 2 Homebuyer Report is a standard survey conducted by a qualified RICS surveyor on behalf of the buyer. It is more detailed than the lender's mortgage valuation and covers the general condition of the property, including the main elements of the building: roof, walls, floors, windows, services (drainage, plumbing, heating), and grounds. Defects and areas of concern are rated on a condition scale from 1 (no significant problems) to 3 (urgent repairs required) and flagged for the buyer's attention. The Level 2 report also typically includes a market valuation and an insurance reinstatement value. A homebuyer report is carried out on a 'non-intrusive' basis, meaning the surveyor inspects what is visible and accessible without lifting floorboards, moving furniture, or opening up the building fabric. It is generally appropriate for conventional residential properties built in the last 100 years that are in reasonable condition and have not been significantly extended or altered. For properties with more complex histories or conditions, a Level 3 survey is preferable.

Question 4

When should I commission a full building survey (RICS Level 3)?

Accepted Answer

A RICS Level 3 Building Survey is the most thorough type of residential survey and is recommended in several situations. First, older properties — particularly those built before 1930 — are more likely to have significant structural issues, period construction methods (such as solid walls without a cavity), or materials that require specialist knowledge to assess (such as timber frames, cob, or early concrete). A Level 3 survey provides the in-depth analysis these properties warrant. Second, properties of non-standard construction — including thatched roofs, flat roofs, steel or timber frames, concrete panel construction (such as PRC or 'Airey' houses), or properties with extensive extensions — carry additional risks that a Level 2 survey may not adequately identify. Third, properties in poor or uncertain condition, or those requiring significant renovation, benefit from the fuller investigation and detailed advice a Level 3 survey provides. Fourth, if you plan to carry out major works — such as a loft conversion, extension, or structural alterations — a Building Survey provides a baseline assessment of what you are working with. The Level 3 survey costs more than a Level 2, but the cost is small relative to the purchase price and can avoid a very expensive surprise after exchange.

Question 5

Who pays for the survey when buying a property?

Accepted Answer

The buyer pays for any survey they commission on their own behalf. This includes the RICS Level 1, 2, or 3 survey obtained for the buyer's own information and protection. The cost of a homebuyer report typically ranges from around £400 to £700 depending on the property value and location; a full building survey typically costs between £600 and £1,500 or more for a large or complex property. The buyer also typically pays the lender's mortgage valuation fee, though some lenders include a free basic valuation as part of their product offer — particularly on higher loan-to-value products or as a promotional offer. It is important to note that paying the mortgage valuation fee does not give the buyer any rights in relation to that valuation or its findings: it is still the lender's report. Survey costs are generally not refundable if the purchase falls through, though some surveyors offer to transfer the report to a different property in certain circumstances. Survey costs are a standard part of the purchase transaction and should be budgeted for alongside conveyancing fees, stamp duty, and any broker fee.

Question 6

Do I need a separate survey if I am buying a new build property?

Accepted Answer

New build properties present a different situation from second-hand properties. Because the building is new and has not been occupied, there is no history of use and — in theory — no accumulated wear or hidden defects. For this reason, some buyers of new build properties choose not to commission an independent survey of the type used for second-hand purchases. However, this does not mean new builds are risk-free. New builds can have snagging issues — defects arising from the construction process itself — and more significant structural or specification problems are not unknown. Some buyers commission a 'snagging survey' from a specialist company, which inspects the completed property before legal completion and identifies defects the developer should remedy before handover. This is not an RICS survey but can be valuable. New build properties sold with a developer warranty (such as NHBC Buildmark or LABC warranty) provide some protection for structural defects for up to ten years, but this warranty is with the developer or warranty provider and does not replace the value of an independent inspection. It is also worth noting that some mortgage lenders have specific policies on new build properties and may require a valuation confirming market value before agreeing to lend.

Mortgage Survey FAQ