House Surveys and Valuations

What is the difference between a house survey and a valuation? Does the survey include valuation?

I get this question from every client I chat to. A valuation is when the bank or building society you’ve applied to for a mortgage goes to the property and checks that it’s worth lending you money for the house.

They’re looking at the value and whether it’s worth lending against. If half the roof is missing or it’s riddled with damp, the surveyor that goes to do the valuation would report that back.

Primarily, they’re paid by the lender to prepare a report for them.

It’s not prepared for the applicant. Interestingly, in a lot of cases the lender doesn’t share that report with the applicant, or me as the broker.

A survey is where a surveyor goes around that property to look at its condition. They’ll start at the top – the chimney stack, roof coverings, gutters, drainpipes, pointing and silicone around the windows. They’ll look at the topography of the land, and then look inside.

They take damp meter readings, look at the bathrooms etc….they’re preparing a survey based on the condition of the property.

The two things are very different. On the question about whether valuation is included within the survey, that very much depends on the surveyor. If you’re asking a building society to do a survey on the property, they can carry out the valuation for the lender at the same time.

If you’re instructing a surveyor on your own account to do a survey of the property, it rarely includes a valuation – unless you stress that you want this.

Do I need both a survey and a valuation? Can I use the mortgage valuation as a full survey?

The mortgage valuation isn’t a full survey. It’s just a check that it’s worth a lender giving you a mortgage on that property.

Getting a survey is very much about peace of mind. You could be buying a property that’s just been fully renovated. It has had a new roof and damp course, there’s a warranty, a new boiler, new kitchen, new bathroom, it’s been rewired and you have all the receipts… Arguably, you’re covering most of the points a surveyor would look at.

Those warranties and guarantees from the developer would probably give you the peace of mind to buy with just a valuation. But in most cases, you probably want something more detailed with a professional’s view on it.

Another thing is that a lot of lenders now use ‘automated’ valuation or ‘index’ valuations. That means nobody’s actually going around to the property to check its condition. They’re taking Land Registry information to see what a property is worth – they just do that on a computer.

You could be buying a property for £1 million without anybody actually doing a condition report on it. That’s why you would probably arrange a survey.

Also, you might find a property where absolutely everything needs updating. I’ve got one client who is taking the roof off and replacing it all, including timbers. There’s some damp, so he’s taking up floorboards and replacing joists. It needs a new kitchen, bathroom and rewiring.

He isn’t bothering with a survey, because he’s replacing everything that might come up. It’s very much horses for courses, and led by the buyer’s attitude to risk.

Who arranges the house survey, the buyer or the lender?

A lot of people assume it’s the solicitor, but it isn’t. Let’s say we’ve arranged a mortgage through HSBC. They don’t do any level two or level three surveys – they only provide valuations.

In that case, you would arrange the valuation through the lender and book your own survey with a reputable company.

Nationwide or Halifax, however, will do a Homebuyer’s report (level two) and also a level three report. It’s therefore more cost-efficient to arrange it through the lender rather than directly with a surveyor.

If you want a more in-depth survey done on the property, you often have to arrange that yourself [information correct at the time of recording in November 2025].

How much do surveys and valuations typically cost?

Typically, a valuation with the majority of lenders is free, although not in every case. A lot of lenders charge for it on a Buy to Let application, though. For a limited company Buy to Let mortgage, a basic valuation is actually quite expensive.

But often with residential mortgages they’re free or there’s a negligible cost. Halifax tends to charge around £100 for a first-time buyer. But if you want a Homebuyer’s report, often called the RICS Level 2 Homebuyer’s, that’s a lot more in-depth.

You can end up with a report that’s 40 to 100 pages long, and very much based on the value of the property. One of my clients is buying a £600,000 property and the Homebuyer’s report is £980. That’s a bit on the expensive side – we normally see them at £750 to £800, but it depends on the property, the area and the build. If it’s a non-standard construction, it can be more expensive.

This is always subject to a client’s thought processes. If your dad’s a builder and he says the property is fantastic and absolutely immaculate, you probably don’t need to worry about a survey. You might go for a basic valuation, costing you nothing.

If you want more peace of mind, especially if it’s your first or second house, you might want a professional surveyor to provide a comprehensive report on the property – that Homebuyer’s level two report.

How long does a house survey or valuation take?

A surveyor for a valuation will have done a bit of work beforehand to look at other similar properties in the area to see what they’ve been selling at. It’s always based on sold prices.

You could have a house for sale at £400,000, but five others in the street have sold for £300,000. The surveyor bases it on the sold prices rather than what a seller thinks it’s worth.

Then they come to the property to check it’s in good condition, or if it needs cosmetic updating or the condition is poor. They decide whether to go a little higher or a little lower than the comparison properties.

A level one survey or valuation tends to take just 10-15 minutes, because most of the work goes into that research. With a level two, it’s more dependent on the property because they’re going through everything. In some cases, they’re going in attics and cellars and so it can be a lot more labour-intensive – anything between an hour or two to half a day.

It’s very much subject to the size of the property, its build and location.

What happens if a survey finds problems with the property?

I can give you a perfect example – one client has just put an offer in on a property and instructed a Homebuyer’s report. The property needed a lot of cosmetic updating, and had been priced to allow for that. It needs a new kitchen and bathroom, plus rewiring.

They’ve got about £20,000 saved to do that. But the Homebuyer’s report has found that there’s suspected asbestos in the property and it will cost about £6,500 to take that out. That wasn’t something the buyer could see or know about when they put their offer in.

The clients weren’t sure what to do – they were worrying about cutting their budget back to cover this. But as I advised, the first thing to do is go back and renegotiate. That’s why you’ve paid for a survey.

They’ve now got a reduction of £6,500 off the asking price. It sounds like a big reduction but that just takes the asbestos out – it doesn’t actually replace it. There’s probably still another £3,000 or £4,000 to pay for that. But when they sell in future they know there won’t be issues with asbestos.

When a client gets a survey back, I ask for a copy of it and go through that with a fine tooth comb. We’ll arrange a follow-up appointment and look at the details together. I’m not a surveyor, but I do go through three or four Homebuyer’s reports every week. I often have a good gut feel about what’s good, bad or indifferent.

We can see what’s wrong with the property or anything else to look into. A surveyor might think there’s a problem with the electrics, in which case you need to get an electrician to visit. We’d go back and renegotiate if there are any problems at that point.

That’s where using a mortgage adviser pays dividends – we don’t just arrange a mortgage. We’ll help you at every step, including the survey. If you choose to ignore something, that’s fine, but at least you know exactly what you’re moving into.

Can I renegotiate the offer price based on the survey results?

Absolutely, and it’s a key reason to get that survey done. If you find out there’s £5,000 of work needed, you can go back to the vendor and renegotiate. Maybe you were aware of the issue but thought it would cost less. Maybe you didn’t expect any of it.

Ultimately it’s their house and their problem. Anybody else buying that property will have the same issue. It’s all down to the vendor on whether they will or won’t renegotiate on price.

I always talk buyers through all of this.

What are the different types of house surveys?

First is the valuation, often called a level one. Then there’s the RICS Homebuyer’s level two survey, which is the one most people choose for peace of mind. Then you’ve got a level three survey, often called a building survey. Levels two and three are fairly similar.

I had a client a few years ago where I was arranging a level two survey with one of the couple. But the other partner had separately organised a level three survey. When we actually got the two reports together, they were very similar. It was actually hard to tell the difference.

I’m sure if you spoke to a surveyor, they would explain how they differ, and tell you whether a specific property needed a building survey or Homebuyer’s report.

One client was buying a property that had been heavily extended. It had loft conversions and ended up as a seven or eight bedroom home. When the surveyor went round to do a Homebuyer’s report, he said there were too many extensions to qualify and so he could only do a level one report. I’d never come across that in 30 years of arranging mortgages.

Generally, though, we often find that a surveyor will guide you on whether a property needs a building survey or if a Homebuyer’s will be fine.

Which type of survey should I get for an older or listed building?

If it’s listed as a grade one or grade two you will want a more comprehensive survey. If any works have been done to the property, you’ve got to ensure they’ve been done to the correct standard for the listing.

You don’t want to breach the rules on a listed property. You would automatically get a building survey on that – it’s considerably more in-depth.

Do new builds need a survey?

Probably not. With a new build, you will have a 10-year warranty, and the first two years of that warranty are with the builder themselves. If there are any issues, you would call them direct.

Beyond two years, you would call their insurer or warranty provider. It might be the National House Building Council (NHBC), in which case you would contact NHBC about the issues with the property, and they would send their own surveyor round. That would be covered under the warranty.

However, there are various YouTube videos on the bad state of some new build properties – which might make you want a survey.

I did one in Harrogate recently that was 12 months old. Somebody had lived there and needed to relocate, so my client was buying it. It was still covered under the builder’s warranty for another year and eight years beyond that with NHBC.

For some reason, my client decided to do a Homebuyer’s level two report. I thought it was a waste of money, but it gave that client the peace of mind to buy the property. It didn’t actually come up with anything significant but gave the reassurance they wanted.

What are the most common problems found in house surveys?

Probably damp and roof problems. The two things you don’t want are rising damp or water penetrating through the roof.

Anything else – like needing a new kitchen, you can manage. But if anything comes up on damp we organise a timber and damp report, and if it’s the roof, we send a roofer round.

Will the survey check for damp, rot or subsidence?

They certainly check for damp. Rot is more difficult to check for. For damp they use a damp meter on the wall to assess the amount of moisture. If it’s over a certain level, they suggest you get it checked.

Wet rot or dry rot on timber can be under carpets or floors. Unless there’s easy access, a surveyor wouldn’t look at that because it means taking carpets up and having to refit them.

They might suggest getting a timber and damp specialist round. They might talk to the vendor and seek permission to take carpets up to check for problems.

Subsidence is something they always check for. It tends to show in different ways: cracking in the bricks, mortar or plaster. Any problems there would always be noted.

Will I get a full report after the survey?

It depends which survey you take. On the valuation, because it’s prepared for the lender, you won’t usually get a report. A Homebuyer’s report is anything between 40 and 100 pages long, including photos. If you get the level three building survey, you will get a full report.

Key Takeaways:

• A valuation is primarily for the lender to ensure the property is worth the mortgage amount, and the report is for them. A survey is a more detailed look at the property’s condition for the buyer.
• A mortgage valuation is not a full survey; it’s a check on the property’s worth for the lender. Buyers often need a separate, more detailed survey for peace of mind about the property’s condition.
• The three main types are: Level one (Valuation), Level two (RICS Homebuyer’s report – most common for peace of mind), and Level three (Building Survey). A Level three is typically recommended for older or listed buildings.
• A survey’s findings are a key reason to renegotiate the offer price with the vendor if significant problems are uncovered that were not previously known, such as suspected asbestos or costly repairs.
• The most common problems found in surveys are damp and roof problems. For issues like rot, a surveyor may recommend further investigations by a timber and damp specialist.
  
  

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.