Free leaseholders trapped in new build properties by post-Grenfell EWS1 form

Fire safety is a natural concern within the building sector after the Grenfell tragedy.

The EWS1 form is designed to identify tall buildings where lives are at risk, but leaseholders in safe, modern, and even <18m buildings are left unable to sell or remortgage as lenders demand invasive surveys.

Three issues need resolving: 1) Lenders should not be able to require an EWS1 form for buildings that were never intended to need one.

2) Building surveyors, rather than fire engineers, need to be insured to carry out surveys on low risk buildings, to help reduce the two-year backlog which is trapping residents.

3) Requiring invasive surveys to establish new building safety is a Pandora’s box. Engineers, architects and builders must be compelled to produce evidence of safe construction.

We share homeowners’ concerns in the way EWS1 forms are being used. We also recognise the difficulties and uncertainty they now face in obtaining mortgages. The government continues to encourage and work with industry to resolve these issues quickly.

We understand that lenders need to assess a property's value and whether any major building work could be required to both inform their lending decision and protect the buyer. To support the valuation of high-rise buildings with cladding, the Royal Institution of Charted Surveyors (RICS), in conjunction with lenders devised the EWS1 process. While we appreciate the EWS1 form helps provide consistency and clarity for valuation purposes we do not recognise the EWS1 form as a safety assessment.

The Government is aware that some lenders are requesting EWS1 forms for lower rise properties. We do not support a blanket approach to the use of EWS1 forms on buildings and encourage lenders to accept equivalent or other forms of assessment as evidence for valuation purposes.

Building owners and managing agents should also make available relevant information, to reassure residents about the safety of their homes. This can also be shared with mortgage lenders, valuers, potential buyers and leaseholders to enable swift and informed decisions.

The Building Safety Minister has had assurances from lenders that they would look at applying a proportionate approach to assessments and valuation. We understand they are reflecting this in their policies and guidance to valuers and some lenders have said they would be open to other evidence on value-affecting matters, in line with the approach we outlined above.