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RICS – LANDLORDS TAKING RISKS RELYING ON MORTGAGE VALUATIONS; Private landlords should arrange a Homebuyer Survey or Building Survey before buying older properties, warns RICS. The continuing buy-to-let boom, coupled with the shortage of houses for sale, means landlords have little choice but to buy properties which need work. But, warns RICS, they need to know what they are buying or their invest…ment could turn into a liability.
RICS notes that demand for rental properties remains strong due to many would-be first-time buyers being unable to access the sales market, coupled with a shortage of properties coming onto the market – something that looks set to continue over the coming 12 months.
However, older properties could need a lot more than redecorating or a new bathroom to bring them up to rentable condition, making a fuller survey a worthwhile investment. Typical building or structural faults include dry rot, blocked drains, rising damp, fractured support beams and subsidence.
According to the Building Cost Information Service (BCIS), private landlords could end up paying tens of thousands to resolve faults. For a four-bedroom house, a significant damp problem could cost anything up to £28,000 to repair and prevent from happening again, while subsidence could cost around £24,000 to correct.See more