An average of £200 to £250 million is spent on subsidence claims per annum, with one in five UK homes at risk, experts warn.
Despite the threat, subsidence risks may not always be checked during the conveyancing process, meaning many property purchasers are buying home without realising the dangers of subsidence and the impact on value, insurability and saleability.
According to European research, there could be more than 50 per cent increase in subsidence over the next 30 years and The Council of Mortgage Lenders advises conveyancers that they must “carry out any other searches which may be appropriate to the particular property, taking into account its locality and other features.”
Landmark Information Group has teamed up with Property Assure in launching a range of Subsidence Risk Services to provide clarity of all forms of subsidence risk. As an initial investigation, solicitors can obtain a ‘Subsidence Risk Rating – Postcode Report’ which will determine the level of risk of subsidence at a detailed, specific postcode level; the report also includes a manual expert review. Depending on the findings, further reports, which investigate issues of concern more deeply, are available to purchase.
Andy Lucas, Managing Director of Property Assure, said: “Subsidence is a silent natural disaster and represents the largest ground stability risk in the UK. It affects a vast number of homes throughout the country and is a great drain on our economy; typically the same number of insurance claims is made annually for subsidence as for flood. Over the last 10 years, subsidence has cost the economy an estimated £3bn.”
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