Now that the housing market has restarted deals placed on hold will start to progress and new sales will be agreed although the viewing arrangements are very different to those that we were familiar with pre Covid19.
The arrangements now in force are governed by the Health Protection Regulations. Under these regulations initial viewings by potential purchasers will be done virtually either using an online service provided by the selling agent or looking at a screen in the agent’s office – assuming that the office layout permits the necessary social distancing and hygiene arrangements.
Viewing property
Estate agents will need to have upped their game and be able to offer a well-presented virtual tour of the property and its surroundings so that potential purchasers can readily appreciate its advantages and also any possible drawbacks. Purchasers will want to be taken virtually though the rooms, into the garden and up and down the road.
Physical viewings are then permitted if the purchasers are keen enough so long as a number of stringent requirements are adhered to. These include periodic hand washing, minimal touching of surfaces, internal doors to be kept open and two metre social distancing to be maintained at all times between those doing the viewing, any agent present and the occupying owner or tenant.
Whenever possible properties should be vacated while house hunters are being shown around. So in many cases it would be wise for the agent to arrange for the occupiers to go into the garden or for a drive in a car whilst viewing takes place. At the end of the viewing everyone concerned will need to dispose of face masks and gloves and use a hand sanitiser.
Mortgage valuation
Assuming that the viewing results in an agreed sale subject to contract the purchasers may then need a mortgage and may decide that they require a survey (in England and Wales – not Scotland where a different system applies).
If no survey is wanted and the mortgage advance is low, say 60% loan-to-value or less, then an internal physical inspection by a surveyor for valuation purpose may not be needed and the mortgage lender may rely on an Automated Valuation Model (AVM), desk top valuation or drive past valuation to confirm the property value.
In those cases where an internal inspection by a surveyor is required to confirm the mortgage valuation there are a number of potential infection dangers. First of course it is necessary to be sure beyond reasonable doubt that the surveyor is free from infection and not subject to any test and trace notification and in good health with no symptoms.
If the house or flat is empty and the surveyor is borrowing keys he or she will need to observe social distancing when collecting and dropping off keys at the agent’s office and will need to wear appropriate Personal Protective Equipment (PPE) during the inspection. If the property is occupied the surveyor will need to observe social distancing and in most cases it would be prudent for the vendors to make themselves scarce.
Loft inspection
Some mortgage lenders require the surveyor to undertake a loft inspection when preparing a valuation report which necessitates either using the vendor’s loft ladder, if there is one, or bringing a surveyor’s ladder into the house and opening the loft hatch all of which results in additional touching of surfaces.
Most experienced surveyors would argue that a head and shoulders inspection inside the loft rarely provides significant information relevant to a mortgage valuation and could usefully be dispensed with in most cases.
Valuation surveyors are also expected to take selective readings with a damp meter which may involve some crawling around at skirting level within the rooms.
Building Survey or a HomeBuyer Report
The mortgage valuation is for lenders to help them make a risk assessment on the property they are lending money on. It may be that the purchasers also require a survey for their own information, either a Building Survey or a HomeBuyer Report. These may be undertaken by the same surveyor and at the same timer as the mortgage valuation.
These surveys will involve an extended period at the property and lots of touching of surfaces including opening and closing of windows and doors, inspections inside cupboards and, in the case of Building Surveys, running taps and inspecting and testing drains.
Surveyors undertaking Building Surveys and HomeBuyer Reports will need lots of PPE and great care will need to be taken inspecting and testing drains and sanitary appliances as these are always high risk areas with any potential infection.
The surveying profession is up to the challenge. We will be able to provide mortgage valuations and surveys for our clients in this changed environment whilst keeping ourselves and everyone else involved safe.
Peter Glover FRICS is author of BUILDING SURVEYS first published in 1983 now in its 8th Edition and BUYING A HOUSE OR FLAT published in 2020.
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