Experienced estate agents anticipate and navigate various issues that may hinder a sale, which could affect both their clients’ interests and their own commissions and reputations. Such issues include missing documents for alterations or extensions, like town planning or building regulations. The absence of landlord consent for structural alterations in leasehold properties, and defective RICS surveys. A proactive agent can foresee these potential challenges, aiding in a smoother sales or purchase transaction.

With regards to structural engineering and property condition at the point of sale, we have practical experience with numerous issues that could benefit both estate agents learning their craft and seasoned professionals seeking a refresher.

Reasons a property might require a Structural Engineer’s Report include:

1. Cracks or structural movement
2. History of underpinning or insurance claims for subsidence
3. Concerns raised by failed surveys, whether mortgage or buyer-related
4. Previous alterations without Building Regulations Approval
5. Flats with structural changes made without landlord consent

Our helpful suggestions regarding the above points:

a) General points

If it is likely that a buyer will request a Structural Engineer’s Report due to issues such as cracks, movement, or a history of underpinning or unauthorised building work, it is advisable for the seller to proactively obtain this report. Experience shows that a report from a Chartered Structural Engineer, who is well-versed in residential property issues, can be immensely beneficial. This report not only informs the owner about necessary repairs and associated costs but can be openly provided to prospective buyers. It can even be assigned to them as a reliable reference, though this may incur additional fees to cover the changes in the report and additional responsibilities.

b) Cracks, sloping floors, or door issues

If, during a valuation or early viewing, you notice a significant crack near the front door or in any prominent location, do not ignore it. The buyer’s surveyor will undoubtedly spot it and might request a Structural Engineer’s Report to satisfy mortgage application requirements or to reassure the buyer.

c) Previous underpinning or insurance claims for subsidence

If your initial vendor questionnaire or discussions reveal previous underpinning or a subsidence claim, this is likely to raise concerns for both the buyer and their potential mortgage and building insurance providers. Despite these terms often causing alarm, in practice, they may not be problematic. Underpinning was quite commonly carried out prior to the 2000s, often unnecessarily. In fact, an underpinned house is now stronger than it was prior to underpinning and will compare very favourably to similar properties. In our experience, an early report from a seasoned Chartered Structural Engineer can often alleviate concerns for all parties involved.

d) Concerns arising from failed surveys, mortgages, or buyer surveys

Structural Engineers’ Reports are often requested due to issues identified by a surveyor. This could involve a valuation survey required for mortgage purposes, in which case a Structural Engineers’ Report may be necessary. Alternatively, it might stem from a buyer’s Homebuyer or full Building Survey, both of which might suggest obtaining a structural report for the buyer’s reassurance.

As an estate agent, obtaining feedback from the surveyor’s report allows you to recommend a structural report early, expediting the process. If the property is in poor condition, or there are visible cracks and a history of structural movement, anticipating the need for such a report early can facilitate a smoother transaction.

e) Previous alterations without building regulations approval

A common issue arises when prior structural changes have been made without the necessary documentation, such as the approval of plans through Building Regulations and a completion certificate. This scenario often involves loft conversions, extensions, or the removal of walls or chimney breasts.

Estate agents should be aware that structural engineers can conduct a visual inspection, similar to checking a car’s condition. When alterations were completed many years ago, we can generally ascertain that they have endured over time. However, if changes were made recently, it is more difficult to determine their long-term safety and stability, as insufficient time has passed.

During a property sale, structural engineers can only perform a visual inspection and provide a report, as we do not dismantle the building’s fabric or carry out retrospective calculations. Such an in-depth analysis could be arranged by the vendor, but it is time-consuming, costly, and, in our experience, often unnecessary.

f) Flats without landlord consent for structural changes

If any work, such as wall removal, was done without the landlord’s consent, a retrospective assessment can be carried out, similar to the procedure for non-compliance with Building Regulations. Solicitors representing buyers will likely advise obtaining these assessments when consent or compliance is missing, to ensure due diligence and professionalism.

Conclusions

The pivotal role of the Estate Agent positions the profession to anticipate the need for specialists, including Structural Engineers’ Reports. A proactive approach can save considerable time, boost buyer confidence, and maintain transactions that might otherwise collapse due to unforeseen stress.

It is important that the Engineer is a Chartered Structural Engineer (C Eng, MIStructE), not just a partly qualified Graduate Engineer. They should have experience in creating practical sale reports, with concise and quick responses, avoiding lengthy investigations or testing.

If the Estate Agent identifies any deficiencies in consents or documentation, recommending an early Structural Report can prevent future stress during the sale process. We have encountered numerous situations where such reports have reassured buyers, securing the sale for the vendor, as opposed to risking the buyer seeking other properties. Estate Agents must anticipate this need and act proactively. For any uncertainty about the necessity of reports, a call to a local firm of Chartered Structural Engineers can provide guidance.

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While the majority of our structural engineers’ reports result from surveyors reports’ and lenders’ valuation surveys, an increasing number of reports are arising from buildings insurance and specifically subsidence cover issues.

These problems include:

1. a) Buyers who are unable to obtain subsidence insurance
2. b) Buyers who are unable to secure a mortgage because of historic underpinning or insurance claims.
3. c) Vendors who are unable to sell their home as there is no subsidence insurance in place.
4. d) Vendors who are unable to sell their property because of historic underpinning or minor subsidence claims and superficial repairs, for example, redecoration.
5. e) Owners insurance premiums increase or even withdrawn without notice.
6. f) Owners who require a structural engineers report to support their application for new insurance terms
7. g) Owners re mortgaging are asked for a Certificate of Structural Adequacy to secure new funding even thought current insurance includes subsidence.
8. h) Owners subsidence insurance is withdrawn after they have made a claim or even merely notifying the insurer of damage without submitting a claim.

So why are there so many insurance problems related to subsidence?

Readers will see from the points above that the entire property chain, ranging from simple home ownership to buying and selling, is fraught with subsidence insurance issues.

Whilst we are not insurance experts, we believe that many of the issues arise from a simple lack of understanding of the subject. The following points are clear to us:

1. a) Property prices are so high that the general public, including insurance company employees, instinctively view cracks in buildings, such as houses and flats, as a significant concern or risk.
2. b) Most people believe that any cracks in houses are an issue, however, most are not.
3. c) Many people think that cracks in houses are expensive to repair and will jeopardise the process of buying and selling a property. In reality, most cracks are neither serious nor expensive to repair especially when compared to the property’s value.
4. d) Insurance companies do not employ technical experts, such as chartered structural engineers, which means they often don’t fully understand the technical issues. Instead they rely on binary computer-generated answers to standardise questions, which is too simplistic a methodology.

Discussion

The starting point with all of these issues is the “risk” specifically “perceived risk”. It all stems from a misunderstanding of how buildings behave and what cracks mean or do not mean. Fear of the unknown perpetuates anxiety until an experienced Chartered Structural Engineer provides a report and clarifies the situation.

It is a requirement of any domestic mortgage that the buyer or owner includes subsidence insurance as part of their buildings insurance policy. The insurance industry provides associated insurance and has to price the risk and ensure premiums to cover the overall costs and contribute to profits, similar to other types of insurance.

Between the 1970s and the 1990s, insurance policy excesses were typically low, around £500. Consequently, large numbers of the public did not hesitate to file insurance claims for minor issues such as small cracks or seasonal movement since the cost of repairs and redecoration nearly always exceeded the policy excess. As an unintended benefit, this often resulted in many rooms being newly decorated leaving them as good as new.

Whilst this article is not the place for a technical engineering thesis, it is fair to say that the subsidence industry, including engineers and surveyors, were somewhat overzealous when dealing with small amounts of cracking. This resulted in expensive underpinning schemes being carried out at huge cost, which was disproportionate to the cost of simply repairing the damage and dealing with offending trees. This legacy has resulted in owners, buyers and insurers being nervous of the terms ‘subsidence’ and ‘underpinning’ as these convey both expense and risk!

These days, it is uncommon to see properties being underpinned. Instead, issues such as tree roots or leaking drains are addressed, followed by straightforward and cost-effective crack repairs.

Insurance primarily aims to repair and restore the pre-damage condition rather than improve it or prevent future damage. A helpful analogy is that of a vintage car: if a fault develops, it is repaired, but the car does not become like new, and the same issue may arise again. Insurance companies have become more stringent in handling claims and prefer to repair damage even at the risk of future repairs, as this is potentially less costly than investing significantly more to prevent recurrence.

As a consequence, the cost of insurance per claim has reduced significantly, yet many household insurance companies are unprepared to offer simple and affordable terms to most domestic homeowners. This leads us to believe that the past perception of expensive underpinning is unfounded.

Why do we all worry about cracks?

This article is not a technical thesis on cracks and the human and engineering implications but it is important to emphasise that most of the issues discussed here are a result of people misunderstanding cracks and what they mean for residential property. Those interested to read more can see separate articles on our blog website about subsidence and minor cracks.

Previous claims and underpinning

Insurance companies often penalise property owners or buyers who have a history of previous insurance claims, especially if underpinning has been carried out. While various issues may arise from this stance, it often lacks sense from a technical and engineering perspective. Insurance firms most likely use simplified algorithms for these evaluations, as employing a structural engineer to assess each case individually is unrealistic. However, property owners or buyers can seek their own expert by employing a chartered structural engineer to assess the situation more accurately and provide a structural engineers’ report.

In the majority of our inspections and reports, where previous insurance claims have been made or underpinning has been carried out, we find that the current and future risks are no different to those of many similar properties in the same geographical area, sharing a similar architectural style and foundations. With over 30 years of experience, it appears that the criteria used by insurers and brokers are far too simplistic, leading to broad generalisations that cause problems for numerous homeowners and potential buyers.

What should you do?

Most of the issues discussed are unfortunate and frequently avoidable if there was a greater involvement of engineers in the decision-making process. This is unlikely to change given the sheer size of the insurance world. However, homeowners and potential buyers can significantly influence the decision making processes by exercising due diligence. This involves appointing an experience Chartered Structural Engineer to advise them. And the insurance company should be reassured by the subsequent detailed report. At the very least, it will provide essential engineering facts and give the insurance company concrete information on which to base their decisions (no pun intended!).

Although this is an extra task and expense, it can be crucial for securing subsidence insurance, which may affect the ability to purchase certain properties. For existing homeowners, it may significantly impact future annual insurance premiums. In many cases, the report’s cost can be recouped within one or two years through substantial insurance savings.

Should you require further advice or have any questions then do call SERL on 020 8161 9900 or contact us and we’ll be delighted to help.

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An owner contacted SERL, having found us via an online web search and based on our good Google reviews.

The client sought our expertise in structural engineers’ reports, especially within the South-West London area.

SERL’s structural reporting service

In response to the client’s requirements our qualified Chartered Structural Engineer recommended a General Structural Inspection (GSI) report.

SERL offers two types of structural reports:

1)       A localised, specific, and limited Specific Structural Inspection (SSI) report or a Structural Engineers Defect Report.

2)       A broader General Structural Inspection Report (GSI) or Structural Engineers General Movement Report which focuses only on matters of cracking and movement.

Our Chartered Structural Engineer’s report for the South West London property

The owner, who purchased the house the previous year, had become increasingly aware of various internal cracks in numerous rooms and was concerned they might indicate serious issues. Before proceeding with a major refurbishment, the owner wished to understand the significance of these cracks.

This property is a typical 1920s semi-detached house, constructed with solid brick walls, suspended timber floors, and roof framing.

Situated on the well-known London Clay geology, the property is near several large trees, especially at the rear.

SERL’s findings

The living room, master bedroom, and stairwell exhibited several cracks. However, we assured the owner they were merely superficial plaster imperfections, nothing that was structurally concerning. Our examination of the building’s exterior found no evidence of any contemporary structural movement.

SERL’s conclusions and recommendations

We were satisfied that none of the cracking was serious which relieved the owner and allowed them to move ahead and plan the internal refurbishment without concern.

We did make various recommendations with regard to removing a tree in the front garden and pruning trees at the rear, but because the latter were on neighbouring land addressing this issue always proves more complicated.

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