Is Buying a House with a History of Subsidence Always a Bad Idea?
If you are buying a house it is always a good idea to check if it has a history of subsidence. Here's some useful information about subsidence and whether buying a house with a history of subsidence is a bad idea or not.
Historic and active subsidence are not the same buying situation. Documented, stable historic movement leaves a different mortgage, insurance and repair position from movement that is active, unexplained or missing evidence.
Article updated: July 2026
For an investment property or a buy to let property for sale, the useful distinction is not simply whether the word subsidence appears in the history. The cause, current activity, repair evidence, valuation, mortgage position and insurance terms determine how much uncertainty remains.
What is Meant by Subsidence?
Subsidence is a problem where the ground on which a house is built sinks and affects the structure of the property. Subsidence is said to be one of the most common structural problems.
Settlement is a minor form of subsidence. A certain amount of settlement is considered perfectly normal especially with a newly built house, however.
Landslip is also a form of subsidence. Landslip is a situation where sloping land literally slips away. Heave is the reverse of subsidence. With heave, the ground rises up instead of subsiding.
Subsidence can be caused by one or several different issues. Subsidence can be caused by building faults, ground conditions, trees or plants which remove moisture from the ground, flooding or leaks which add moisture to the ground and - in ex-mining areas - mining subsidence.
The Different Types of Subsidence
There are broadly two different types of subsidence: current subsidence and historic subsidence.
Historic subsidence is when a house suffered movement in the past and the cause, repair and later stability can be evidenced. Current or active subsidence is movement that is continuing. A third practical situation is suspected or unexplained movement, where the available records do not yet establish the cause or whether it is active.
| Position | What the records need to establish | What remains uncertain |
|---|---|---|
| Documented historic movement | The cause, repair, completion date and later monitoring or condition evidence. | Whether a lender and insurer accept the current evidence and terms. |
| Active movement | The current cause, extent, rate of movement and required remedial work. | Repair scope, completion timetable, valuation, mortgage security and insurance response. |
| Suspected or unexplained movement | Whether visible cracking or distortion is subsidence, settlement or another defect. | The cause and activity remain open until the focused investigation is complete. |
How Serious a Problem is a House With Subsidence?
Subsidence can potentially be a very serious problem.
Minor cases of subsidence may not be such a serious problem especially if they are properly diagnosed and professionally remedied.
Severe subsidence can be a very serious problem. Subsidence can lead to severe structural problems which can make a house uninhabitable. Severe subsidence can be dangerous and eventually lead to structural instability and collapse. Subsidence can make a house unmortgageable and so, perhaps, unsaleable.
Which Properties are Most Affected by Subsidence?
All kinds of properties can be affected by subsidence including both old and fairly new properties.
Properties built on certain types of soil are more likely to be affected by subsidence. Properties built on clay soils, often found in the south east of England, are particularly susceptible. Clay soils tend to expand in wet weather and contract in dry weather causing the land to subside. The RICS subsidence guide also explains how leaking pipes can wash away or soften soil beneath foundations.
Properties in ex-mining areas such as the Midlands, Yorkshire, the north east and north west are also more liable to subsidence.
How to Tell if a House has Subsidence
It is very difficult to tell if a house you are thinking of buying has a subsidence problem, or how serious it might be - especially if you have no previous knowledge of the problem.
Often neither the house seller (or vendor) nor the estate agent will know that a house has subsidence. So it is sensible to make your own checks.
A professional house survey provides evidence about the property's condition. RICS guidance says the appropriate survey level depends on the property's age, size, condition and complexity. It describes Level 3 as the most comprehensive option, but it is not automatically the right survey for every property.
Common tell-tale signs of possible subsidence include interior and exterior cracks, doors and windows that do not fit properly and sloping or sagging floors. (These may be caused by other structural problems too, however.)
A crack over 3mm in width could be a sign of subsidence.
A home survey records visible defects and can identify matters that need further investigation. It may not establish the cause, extent or current activity of suspected movement on its own. A surveyor, lender or insurer may ask for a focused structural report, together with monitoring, drainage checks or other technical evidence.
The time needed to diagnose the movement depends on the evidence. The Financial Ombudsman says a thorough insurance investigation can include foundation and soil checks, drain inspections and crack monitoring to establish whether movement is continuing or seasonal.
Subsidence and Mortgages
Mortgage availability is not a simple current-subsidence or historic-subsidence rule. Lenders assess the property, valuation and supporting evidence against their own criteria.
For example, Halifax mortgage criteria say each property application is assessed on its own merits. The property must be habitable, readily saleable, structurally sound and insurable. Where a serious defect needs further investigation, the lender may require a focused report that deals specifically with the cracking, structural movement or subsidence.
Active or unresolved movement can stop a lender treating the property as suitable security. Under the same lending criteria, the valuer may be unable to provide a valuation until a focused report is supplied. After reviewing the evidence, the lender may accept the property or decide that it is unsuitable security. Historic subsidence is not an automatic approval or refusal.
| Mortgage evidence | Question it answers | Possible next step |
|---|---|---|
| Valuation | Whether the valuer can provide a current value and regard the property as readily saleable. | A valuation, a request for more evidence or a conclusion that the property is unsuitable security. |
| Focused structural report | The nature, cause and significance of the reported cracking or movement. | The lender reviews the report rather than relying on a general description of “historic subsidence”. |
| Repair and monitoring records | What was repaired, when it was completed and whether later movement has been recorded. | The evidence forms part of the lender's property-specific assessment. |
| Buildings-insurance terms | Whether suitable cover is available and on what premium, excess and exclusion terms. | The lender can consider whether the property meets its insurability requirement. |
Is Subsidence Covered by Home Insurance?
Most home insurance policies cover subsidence, heave and landslip, according to the Financial Ombudsman. That does not mean every cause, structure or item of work is covered.
The exact outcome depends on the policy wording, when the damage occurred, what was disclosed when the policy was taken out and the technical evidence about the cause. The Financial Ombudsman notes that policies can treat settlement, faulty construction, floor slabs and damage outside the main residence differently.
The ABI's subsidence guidance says an insurer may appoint specialists to investigate the cause and arrange repairs. It also says the existing insurer can normally discuss continuing cover for a purchaser, but this is not automatic and the terms still need to be confirmed for that property and policyholder.
Subsidence and the Cost of Home Insurance
A history of subsidence can affect whether an insurer offers cover, the premium, the exclusions and the excess. The ABI guidance says the decision varies with the insurer's assessment of the current risk.
The ABI guidance says most policies have a subsidence excess of around £1,000, while a property with previous subsidence may have a higher excess. The quoted premium, excess and cover are the figures to compare rather than assuming a standard outcome.
How to Rectify Subsidence
Curing subsidence involves three separate steps: Firstly you will need to find out the cause of the subsidence. Secondly, you will need to fix the cause of the subsidence. Finally, you will need to repair the damage that has been caused by subsidence.
Fixing subsidence can involve work like removing trees or fixing leaks or broken drains. In severe cases, a house affected by subsidence may need underpinning of its foundations, however.
Underpinning is a process where the ground beneath part or all of the foundations of a building is removed and strengthened with concrete. Other methods of fixing a subsiding property include using piling, tie rods and resin injection.
Fixing subsidence can be expensive, although the actual cost will depend on the extent of the underpinning required.
Can you fix subsidence yourself? Diagnosing and rectifying subsidence is not usually a DIY job. You will need expert help to diagnose the subsidence and repair it.
Selling a House with Subsidence
A future sale can depend on the same evidence requested at purchase: the cause of the movement, whether it is active, what repairs were completed, any monitoring results, the current condition and the availability of mortgage finance and buildings insurance.
If a lender does not accept the property as suitable security, or suitable insurance cannot be arranged, the pool of potential buyers can be smaller. There is no fixed subsidence discount. The lender's valuation criteria consider condition and saleability, so a current valuation carries more weight than assuming either that the property has lost value permanently or that repairs restore full market value automatically.
The same evidence matters if a subsidence-affected home is marketed among below market value properties for sale. A lower asking price does not establish the size of the repair, insurance or resale risk.
Alternative ways to sell a house with subsidence include selling it at auction or selling it to a house-buying service.
What Evidence Matters When Buying a House with Subsidence?
The useful distinction is between a documented, stable historic problem and movement that is current, unexplained or missing evidence. The purchase price alone does not settle that question.
The evidence can be compared across the survey, repair, mortgage, insurance and valuation records:
| Evidence | What to establish | Why it changes the picture |
|---|---|---|
| Survey and focused report | The cause, extent and whether movement is active, seasonal or stable. | Visible cracking alone does not establish the diagnosis. |
| Monitoring, drainage and ground records | Whether movement continued, whether drains leaked and what the ground investigation found. | These records test the explanation given for the defect. |
| Repair documents | What work was completed, when it finished, who designed or supervised it and what remains. | “Repaired” can describe very different scopes of work. |
| Valuation and mortgage response | Whether the valuer provided a value and whether the lender accepts the property as suitable security. | Historic subsidence does not create an automatic approval or refusal. |
| Insurance quotation | The premium, subsidence excess, exclusions and whether continuing cover is available. | Most policies include subsidence cover, but the terms are property and policy specific. |
| Purchase and work figures | How the agreed price plus documented work compares with the current valuation and comparable properties. | A lower asking price does not prove that the remaining risk is covered. |
What Should an Underpinned Property Record Show?
Underpinning is a description of work, not proof that the cause and later stability are understood. The record should identify why underpinning was chosen, which part of the building was treated, the design and completion documents, and any later monitoring or professional sign-off that exists. It should also show whether related causes such as leaking drains or nearby vegetation were addressed. A lender, surveyor or insurer may still ask for a focused report because the relevance of each document depends on the current condition and the question being assessed.
Together, those records show where the uncertainty sits. They do not produce a universal verdict, because the property, evidence, lender and insurer can all differ from one case to another.
Frequently Asked Questions
Can a Lender Accept a House That Has Been Underpinned?
There is no automatic rule that every underpinned house is accepted or refused. The Halifax criteria illustrate the property-specific approach: the home must be habitable, structurally sound, insurable and readily saleable, and a focused report may be required before the lender decides whether it is suitable security.
Do Repaired Cracks Prove That Movement Has Stopped?
No. Cosmetic repair can show that a crack was filled, but it does not by itself establish the original cause or whether movement continued afterwards. Survey, structural, drainage and monitoring evidence can provide the wider record. The Financial Ombudsman describes investigations that can include foundation and soil checks, drain inspections and crack monitoring.
Can Buildings Insurance Continue After a Subsidence Claim?
The ABI says the existing insurer can normally discuss continuing cover for a purchaser, but it is not automatic. The actual quotation, exclusions and excess need to be confirmed for the property and the new policyholder. Most policies have a subsidence excess of around £1,000, while previous movement can lead to different terms.
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