Many cladding-hit homeowners will remain trapped in unsellable flats despite new efforts to unblock the mortgage crisis affecting them, campaigners have warned.
They described the new guidance to help with the valuation of cladding-hit flats as ‘well-meaning’.
But they went on to say that they had ‘serious concerns’ about how effective the new way of valuing such homes would be.
Banks are still unlikely to lend on cladding hit flats despite this new approach to valuations.
The Royal Institution of Chartered Surveyors has issued new valuation guidance
In a statement, campaigners at End Our Cladding Scandal, said: ‘While well-meaning, it will not lead to anything close to a proportionate and consistent valuation methodology for properties caught up in the building safety crisis.
‘Our view is that it is highly unlikely that the current proposals will break this deadlock leaving innocent leaseholders still trapped in this living nightmare.’
And the group’s Giles Grover added: ‘Uncertainty and a lack of confidence in the broken flat sales market are set to prevail.
‘Mortgage providers will continue to err on the side of caution and too many innocent leaseholders, in buildings of all heights and with serious external and internal defects, remain ruled out of any help to fix safety issues they played no part in causing.’
Leaseholders affected by the cladding crisis have been unable to sell their homes following the Grenfell Tower fire
The new guidance from the Royal Institution of Chartered Surveyors gives detail about how valuers should approach unsafe buildings undergoing remediation works.
It seeks to take into account the new funding that has been made available by the Government to with those repairs.
Rics said: ‘The loss of confidence in the fire safety of blocks of flats has severely impacted the property market and leaseholders, with many still unable to sell due to the absence of mortgage finance, and, until recently, facing unaffordable costs for risk mitigation and remediation.’
It hopes the new guidance will provide a blueprint allowing surveyors to take a ‘transparent and consistent approach’ to valuations for mortgages, and enable the market to ‘swing into action’.
Many leaseholders are still unable to sell due to the absence of mortgage finance
Leaseholders affected by the cladding crisis have been unable to sell their homes following the Grenfell Tower fire.
A fire broke out in the 24-storey Grenfell Tower in London’s North Kensington in June 2017. A total of 72 people died, including two who later died in hospital.
Dame Janet Paraskeva, of Rics’ Standards and Regulation Board (SRB), said: ‘Our role is to safeguard the public interest. The protections brought into law for leaseholders and the pledge made by the lending industry to provide mortgages on properties covered by these protections, have enabled us to provide guidance to valuers, ensuring a consistent approach for their lender clients. This brings much needed confidence to buyers, sellers, and the market as a whole.
‘The board is pleased to put this advice into effect immediately, with support of stakeholders, to help those impacted by the building safety crisis.’
