As the remote working trend has seeped into every corner of our lives, it seems the housing market isn’t immune to its effects. But this shift, while convenient, comes with a significant catch for homeowners and potential buyers. A rising trend in banks employing work-from-home surveyors for property evaluations is now casting a long shadow over the future of selling these very homes.

Once upon a time, before the world was hit by the pandemic, only 4% of property surveyor jobs were performed remotely or on a hybrid basis. Today, that number has risen to 33%, based on insights from job search giant Indeed. While this dramatic increase helps banks handle the flood of mortgage applications, it also introduces a risky gamble into the equation.

The Crux of the Problem

The convenience of remote valuations comes at a significant cost. These desktop assessments, often based on mere photographs, make it challenging for surveyors to accurately gauge a property’s construction quality. Consequently, some properties are mistakenly deemed fit for mortgages, only to later be discovered as unmortgageable. This misstep can trap homeowners in properties they cannot sell, turning their investment into a financial quagmire.

Real-Life Repercussions

Take the story shared by Steve Savage from Connells Survey and Valuation. A seemingly straightforward case of a two-storey terrace house built in 1900 with single skin brickwork turned out to be a homeowner’s nightmare. A remote valuation had previously green-lighted the property for a mortgage, missing the crucial fact that its construction made it unmortgageable. Such scenarios not only jeopardise the buyer’s investment but also their future prospects of selling the property.

The Invisible Enemy – Spray Foam Insulation

Another silent but formidable issue comes from the use of spray foam insulation in lofts. Though intended to improve home insulation, if installed improperly, it can hinder heat circulation, causing the roof to deteriorate. This potential for structural damage often leads mortgage lenders to refuse loans on such properties, a fact easily overlooked in remote valuations due to the lack of physical inspections.

The Path to Resolution

While customers can seek recourse through the Financial Ombudsman Service for issues missed in valuations, the reality is that bank valuations are not liable for structural defects. This was highlighted in a 2021 case against Santander, where the valuation type, aimed solely at mortgage purposes, led to a buyer discovering subsidence issues too late, with no support from the FOS due to the nature of the valuation selected.

Advice for Potential Buyers

In light of these challenges, the Royal Institution of Chartered Surveyors (RICS) urges buyers to commission their own professional home surveys before making a purchase. Unlike lender’s valuations, these surveys provide a comprehensive view of the property’s condition, revealing any faults or urgent defects. This crucial step can help buyers make informed decisions, potentially saving them from significant financial and emotional distress.

A Call for Industry Reform

The narrative brings to light a broader issue within the mortgage industry, highlighting a pressing need for reform. The shortage of surveyors, especially in areas like Portsmouth, exacerbates the situation, with out-of-area firms often conducting evaluations on properties they’re not familiar with. This lack of local knowledge can lead to inaccurate valuations, further complicating the already murky waters of the mortgage industry.