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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A prospective buyer contacted SERL based on recommendations from their valuation surveyor. They needed a report to address the concerns of their mortgage surveyor, who identified structural issues associated with both general external and internal cracking.

The surveyor had endorsed SERL Structural Engineers Reports as a reputable, independent, and highly experienced structural engineering firm practising in the Sheen and Richmond area of South West London.

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 property is a right-hand semi-detached family home, likely built in the early 1900s based on its architectural style. It is situated on a relatively flat site, which our geological mapping suggests is probably Kempton Park Gravel.

The interior decoration is in extremely poor condition and appears to have been neglected for about thirty to forty years. Consequently, there are more internal cracks than one might typically expect.

SERL’s findings

The rear elevation of the property exhibited one significant crack that will require a thorough resin repair as part of regular maintenance. However, this issue does not affect our assessment of the property’s value or risk from a purchase or loan perspective.

Overall, the alignment and stability of the house is good, and better than many other properties we survey. This is evident in the straightness of the brickwork and the alignment of door and window sills.

Occasional spirit level checks indicated minor undulations in the alignment of the window sills and brickwork, which are within acceptable standards, especially for a property of this age.

SERL’s conclusions and recommendations

We were confident that the structural issues could easily be repaired for a few hundred pounds, which would allow the purchase to proceed.

We were able to provide a positive report to the client, who was pleased with our advice and guidance, and we expect that the mortgage company was able to approve the loan.

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Simon Pole BSc C Eng FIStructE MICE MRICS MAE

Simon is well known within the profession and has regularly provided training courses and lectured at The Institution Of Structural Engineers and the Party Wall Society together at numerous firms of Chartered Surveyors.

SERL Pole Structural Engineers Reports is a specialist company advising all manner of buyers, sellers and owners of residential property in London and the surrounding area.

This article, together with several further blogs to be published shortly, is an introduction to cracks in buildings, explaining in simple terms what they are, why they occur, whether they are something to worry about and what to do about them.

This article introduces the topic and covers:

• What is a crack?
• Why do we worry about cracks.

Introduction to cracks

Cracks are, understandably, a very emotive subject. Our property is usually our largest financial investment and anything which appears to damage it, can be a worry. The very mention of cracks conjures up images of something breaking or not being strong enough and, in rare cases, be a significant problem involving health and safety. Normally cracks are just a nuisance that can be dealt with quite routinely. Whilst repairs are often routine, the prospect of them reoccurring is often high and reducing the risk of them reoccurring or eliminating such risks in the future is far more difficult. A structural Engineer can help you appraise this risk. See later article on Building Insurance issues.

In most scenarios, cracks are more routinely repaired, a bit like a dent in the bodywork of a car, and can normally be lived with. This article provides clarity on the subject and offers some reassurance.

1. What is a crack?

In simple terms cracks are the “pulling apart” of brittle materials, whether bricks, plaster or render.

Most domestic property is built using clay bricks, which are strong when compressed but relatively weak when pulled apart or “in tension”.

Cracks generally occur when there is a change of circumstance or environment either to the wall surface itself, for example temperature or moisture changes, or more significantly when there are changes to the volume of the supporting subsoil:

• • Changes in moisture and temperature result in minor effects such as normal plaster or render cracks.
  • Where there has been recent building work there may be slight changes to weight loading stresses.
  • When all other factors are stable but there are changes in ground conditions, for example, the drying out of London Clay soil due to trees sucking moisture from the soil, can cause varying degrees of cracking. See later articles.

2. Why do we worry about cracks in our homes?

Whether buying or selling a home, cracks can be a major issue, and up to 75% of our Structural Engineers Reports for properties in London and the surrounding area, arise at the point of sale for this reason. The remaining 25% tend to be for existing homeowners worried about cracks and whether they should notify their Insurance Company.

There are all manner of reasons to be concerned about matters of movement and cracking, whether buying or selling, as a Surveyor of property responsible for mortgage valuation or as a bank, Building Society or an Insurance company considering household insurance risks. Solicitors and Estate Agents advising the various parties will also want to understand the risks involved.

Cracks of any sort tend to be a warning for what could be a problem. They may not necessarily an issue but their sudden appearance and widening over time or reoccurring in newly decorated walls may indicate a problem. It is the not knowing which often causes concern and the need for our advice and reporting.

Other professions will not mind me saying that it is only when a Chartered Structural Engineer inspects and reports on cracking and movement that the client tends to be completely reassured. The training of other property professionals might include a general awareness of cracking and movement but their many areas of expertise covers so many other aspects that they cannot be expected to be experts in each particular specialism. Much like a GP Doctor who will provide an initial opinion, then refer the patient to a specialist for particular aches and pains within those particular organs, muscles and tendons etc.

For the above reasons it is increasingly common for Surveyors and other property professionals to recommend a structural engineers report.

More detailed articles will shortly appear to assist each property profession but the following points are the key reasons why each party to a typical property sale might have cause for concern:

• • • The homeowner

You have an immediate vested interest and therefore need to be reassured that your property is safe and strong, whether simple repairs are required or more detailed investigations and repairs may be required. You could also need advice before notifying your insurance company, either in general or for concern of non disclosure, which may jeopardise a future insurance claim, increased premium or even removal of subsidence cover. Some Insurance companies ask for a structural Engineers Report to accompany a claim in the first place.

• • • Selling your Home

Discerning vendors and their selling Agent are more often obtaining a Structural Engineers Report at the commencement of marketing their property, either generally or because of a specific crack or structural defect which they have not repaired, which might concern a prospective buyer.

Providing a Structural Engineers Report pre sale can reassure potential buyers and provides transparency, which increases confidence for the buyer.

All too often we are asked to report for buyers at the eleventh hour, for example, prior to the exchange of contracts and the buyer becomes nervous quite unnecessarily.

• • • The buyer

Most Structural Engineers Reports stem from the General Survey (RICS level 2 or 3) link to RICS or during the Bank Surveyors mortgage valuation. Our report may, therefore, either be for the peace of mind of the buyer or might become a third party requirement. It is particularly important the Structural Engineers Report is prepared by a fully qualified, Chartered Structural Engineer (CEng MIStructE qualifications), since only they will normally have both the expertise and minimum qualifications expected by the Bank, Building Society or Insurance company. Note, a graduate Engineer or Associate Member of a Built environment profession is not a chartered Structural Engineer so do check this carefully to avoid the need for paying for two reports.

A good Structural Engineers Report should provide clear, jargon free advice indicating whether you are able to proceed with the purchase or not, and if any repairs might be involve together with an order of cost.

• • • The Estate Agent

A discerning Estate Agent will appreciate the benefits of an early Structural Engineers Report, to indicate anything serious and for the vendor to have a report they can show to prospective purchasers. This can avoid the last minute problems created by waiting to see whether the buyer or their Surveyor or solicitor calls for a last minute Structural report.

• • • Buyers Surveyor or valuation survey

The majority of Structural Engineers Reports stem from a general Survey of some sort, whether for the buyer or the lender. If they are via the mortgage or Insurance provider they will be essential. If they are for your own peace of mind but a strong recommendation by your GP Surveyor then of course most people will take this advice. It is important, however, to clarify with the Surveyor and specifically what the structural concerns are. For example, are they confined to one particular crack in a bay window, or are there general concerns for the entire property. Most firms of Engineers offer two distinct types of report with different price points; either a specific defect report only or a more general movement report.

• • • Buyers Solicitor

A discerning conveyance solicitor will strongly recommend obtaining various specialist reports or a Surveyors report. This might not be confined to cracks and movement but increasingly common is if there has been any structural alterations, walls or chimneybreasts removed etc without Local Authority Building Regulations consent. Note this is not the same as Town Planning or permitted Development rights.

• • • Buyers lender

The bank or Building Society will need to understand whether any structural issues raised by the Surveyor are serious. The context for this is financial risk generally but particularly in the unlikely event of a repossession and whether the property is easily resold.

If there are expensive structural repairs involved and a mortgage applicant is heavily dependent on a large mortgage with few savings, they might not be able to fund the repairs.

• • • Insurance Companies

Whether for a current owner or for new Insurance associated with a purchase and mortgage offer, Insurers play an important role which is often misunderstood.

For an owner, an Insurance company may receive notification of an insurance claim for repairs. For a buyer, the prospective Insurer will want to know whether there are any current problems with the property or whether there is pre-existing damage.

Insurers are only in the business of Insuring for certain repairs which are not covered by routine maintenance; for example, fire, flood or subsidence. They are not interested in general maintenance, routine repair or neglect. Crucially they only deal with essential repairs to subsidence damaged property, for example, and are not obliged to prevent similar damage from reoccurring in the future. They do not deal with defective design or workmanship issues by a builder or a designers’ shortfall. A more detailed article will follow.

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