Why do we need to do an internal property inspection?
Other than the obvious reasons such as potential defects, quality and condition, all of which contribute to valuation, we are required professionally by RICS Global Valuation Standards January 2020 to inspect property assets internally.
Valuation Practice Statement 2 confirms that “any limitations on the inspection, inquiry and analysis for the purposes of the valuation assignment must be identified and recorded in the Terms of Engagement (VPS para 3.2(i)) and also in the report (VPS 3 para 2 point 2(h))”. The limitation of the inspection is created by the requirement to socially distance from the advice given by Public Health England due to COVID-19.
VPS 2 para 1.3 reminds valuers that “to dispense voluntarily within an inspection or examination of physical assets may introduce an unacceptable degree of risk in the valuation advice to be provided”.
Furthermore, we have tried to offer an alternative procedure for your Help 2 Buy valuation and as well as the RICS requirements to inspect internally, we have had two categoric responses from Homes England (Government). Please note that Target are the administrators for Homes England and will be instructed to comply with their instruction.
Please see the second response below which confirms that it is an unacceptable risk for Homes England not to have an internal inspection of the property.
“Dear Richard,
Thank you for your Enquiry. Our team has replied with,
“ … can Homes England relax the requirement to carry our internal inspections for RICS Surveyors involved in Help to Buy valuations (due to COVID-19 precautions)?”
My understanding is we are not in a position to relax this requirement (it involves the security of the equity loan); we appreciate this is a difficult period and we have heard that a number of surveyors have stopped attending properties due to the current lock-down.
Regards
Help to Buy – Mortgage Administration Team
Homes England
Kind regards
Enquiries Team”
