Different Types of Home Surveys & When They Are Needed
When buying a home you might want to get a professional property survey carried out to help spot defects and confirm the price you are paying is at, or below market value (rather than over value).
Choosing the right type of survey is important and there are a couple of options, so here we will look at the different types of home surveys depending on the property you are buying.
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by Robert Jones, Founder of Property Investments UK
With nearly two decades in UK property, Rob has been investing in buy-to-let since 2005, and uses property data to develop tools for property market analysis.
What is a Home Survey?
In England & Wales, a home survey is a professional inspection of a property that is carried out by a RICS surveyor.
The survey will provide you with a report as to the nature and condition of the property and identify any possible problems with it that you can the carry out further due diligence and maybe negotiation with the seller.
A property survey may also include a valuation of the property, but not always, it depends on which one you choose. There is a specific valuation survey, these are quiet basic and are typically required by mortgage lenders to help confirm the security for the property you are buying.
Home surveys are important as they can help you identify issues that might affect the property, its value and any work needed. These can be invaluable for spotting problems like damp, dry rot, subsidence, wet rot, non-standard construction methods, roofing problems, plumbing and drainage problems, Japanese knotweed, structural defects or any repairs needed.
Scotland has a different system for buyers and sellers. It is usually necessary for anyone selling a property in Scotland to have a Home Report before putting it up for sale. The Home Report is then made available to prospective buyers before they decide whether or not to buy the property. This works well to help identify issues early and reduces sales falling though.
Types of Home Surveys Available from RICS Surveyors
RICS is the Royal Institution of Chartered Surveyors.
There are now three types of survey available from RICS members.
(Home surveys from RICS were previously often known as a Valuation Report, Homebuyer Report and Building Survey or Structural Survey).
RICS Home Survey Level 1
This home survey uses a traffic light type rating.
Here is an overview from RICS on what is included
The level one survey is designed for clients (buyers, vendors and owners) seeking a professional and objective report on the condition of the property at an economic price. It includes a visual inspection that is less extensive than survey level two and survey level three. No tests of the building fabric or services are undertaken.
This level of survey is designed as a very basic overview of the condition of the property. It will not contain any detailed advice on repairs. This level of service is better suited to conventionally built, modern dwellings in satisfactory condition.
It is the lowest priced of the RICS surveys and is intended for conventional properties and newer properties.
Sample RICS Home Survey Level 1 Report (.pdf)
RICS Home Survey Level 2
Here is an overview from RICS on the scope of the level two property survey
The level two survey is designed for clients (buyers, vendors and owners) seeking a professional and objective report on the condition of the main elements of a property. It will not contain any detailed advice on repairs.
This intermediate level of service includes a more extensive visual inspection of the building, its services, and grounds. This level of service suits a broader range of conventionally built properties, although the age and type will depend on the knowledge and experience of the RICS member.
Sample RICS Home Survey Level 2 (survey only) Report (.pdf)
Sample RICS Home Survey Level 2 (Survey and Valuation) Report (.pdf)
RICS Home Survey Level 3
Here is an overview from RICS on the scope of a property survey level 3
A level three survey is more thorough and detailed than then others and will address matters such as the materials used for each part of the building, defects and remedial options as well as issues related to the future maintenance of the property. Concealed areas normally opened or used by the occupiers are inspected if it is safe to do so.
Although services are not tested, they are observed in normal operation. This level of service is for clients who are seeking a professional opinion based on a detailed assessment of the property
Types Of Surveys Available From RPSA
RPSA is the Residential Property Surveyors Association and although RICS is the most common association when landlords and investors think of surveys, there are indeed other associations.
The RPSA provide five types of surveys for buyers
- Home Buyer / Condition survey
- Building survey
- Buy-to-Let survey
- New Build snagging survey
- Home review
For some buyers these may be seen as more comprehensive and you can see a full list of their reports and what is included here.
Below is an example of their buy-to-let survey:
The Buy To Let Survey is ONLY available from RPSA members. The only survey of its type, designed for a traditional property that is, or will be, let to tenants. A unique product that helps landlords protect their investment while safeguarding the safety of the home for tenants.
- All the benefits of the Home Condition Survey, plus...
- Consideration of health and safety matters that are likely to have an impact on tenants occupying the property - considers all 29 hazard profiles identified in the Housing Health & Safety Rating System (HHSRS)*
- Separate DASH - Decent & Safe Homes hazard review report
- Lets your tenants know you care
*Does not include a full assessment of hazard scores as defined by HHSRS
What Do The Different Types of Home Survey Cost?
The average cost of a house survey in the UK is currently £470 according to price comparisons site compare my move, based on the average UK house price of £285,000.
The house survey cost will depend on various factors such as the size, value and location of the home. It will also depend on the surveyor you opt for.
However, the cost will be largely influenced by the type of survey you need. The RICS Home Survey Level 2 is arguably the most popular survey type, costing an average of £424.
The most thorough survey is the RICS Home Survey Level 3, with an average cost of £578. Keep in mind that these costs will vary, with surveys costing more in areas such as London or for unusually built homes.
Below we've looked at the average costs for different surveys in the UK:
| Survey Type | Brief Overview | Average Cost |
|---|---|---|
| Snagging Survey |
Designed to find "snags" or defects in new-build properties, this survey will ensure the home has been finished to the required standards. | £390 |
| RICS Home Survey Level 1 |
The most basic survey provides a general overview of the condition of the home. It will highlight any major issues. | £380 |
| RICS Home Survey Level 2 |
Formerly known as a Homebuyer Survey, this is suited to most homes in good condition and built within the last 50 years. It highlights defects and required repair work, in addition to details about the construction of the property. |
£424 |
| RICS Home Survey Level 3 |
Previously called a Building Survey, this is the most thorough survey. It will highlight all potential issues, problems and concerns throughout the home and grounds. It also provides essential information about the fixtures and fittings in the property. |
£578 |
| Home Report (Scotland only) |
Arranged by the seller, this is made of three parts including the Single Survey. This is essentially a RICS Level 2 survey, giving potential buyers an overview of the condition of the home and any defects. | £703 |
Frequently Asked Questions
Which Type of Survey Should I Order?
There is no right or wrong answer as to which type of home survey you should get.
The best survey will be the one that suits the specific property and your needs. For example if it is clear that the property has a large crack in the wall, it may have subsidence and you may wish to get a structural survey carried out.
The type of home survey you might need depends on other factors, such as the type of property, what it is constructed from, the age of the property, the size of the property and if you are already aware of any possible defects or faults.
For example, a reasonably new brick-built house is likely to need a simpler home survey than an Edwardian semi-derelict house or something unusual like a converted barn or church.
Before choosing which type of home survey to have it is a good idea to speak to a surveyor. Tell them about the type, size and age of the property you are considering buying. Ask them what type of home survey they consider will be most appropriate for that property, and ask them to provide a sample home survey so you can see that it includes everything you need.
You can easily find a surveyor with the relevant associations
Do I Really Need a Home Survey?
This is a great question as some buyers are put of by the potential high cost and are happy doing their own checks on the property. However this is a risky strategy. Buying a property can be one of the largest financial transactions in your life and for the sake of saving a couple of hundred pounds, skipping a survey can be a costly mistake.
Yet technically a home survey is not a legal requirement. However if you are buying a property with a mortgage, your lender may require at a minimum a valuation survey (and some lenders offer mortgage products that include your valuation survey for free as part of their offer).
Why You Should Consider A Property Survey?
As a property buyer there are many costs to consider from stamp duty, finance, conveyancing, insurance, searches and even moving costs. Yet one of the most valuable things you can spend some of your budget on is a quality survey.
Checking how much a property is worth is only one reason. The amount of problem properties I have seen investors avoid, because of something spotted on a survey that they had missed on a viewing is staggering.
Instead of thinking of it as a cost, think of it as an investment. Many experienced buy-to-let landlords I know, choose to instruct their surveys very early on as soon as they have agreed a purchase price, especially when the property is a high value asset and they do not wish to make a mistake (this would be most buy-to-lets in London for example).
They do this because once the survey report comes in they can do three things with it
- They can pull out of the sale. If the surveyor spotted a critical issue, they can choose to pull out and save valuable time and further costs.
- They can use it to re-negotiate the sale price. At this stage of the transaction any problems with the house is an issue for the seller not the buyer. So when problems are spotted by an independent RICS surveyor. The report can be a great negotiation tool to help get a better deal on the property or get the seller to fix the issue before you proceed,
- You can proceed with confidence. If your property survey passes with flying colours, great news. You can continue with the purchase knowing the property is sound.