The lender's valuation
Done for the lender, to confirm the house is worth the loan. Often a desktop exercise or a 20-minute visit. You may not even see the report. It tells you nothing about the condition.
The survey levels (RICS)
| Level | What it is | Typical cost | Best for |
|---|---|---|---|
| Level 1 (Condition Report) | Traffic-light summary of condition. No advice or valuation. | £300 to £600 | Newer, conventional homes in good condition |
| Level 2 (HomeBuyer Report) | Visual inspection, defects rated, advice on repairs, optional valuation. The most common choice. | £400 to £1,000 | Most standard houses and flats built after 1900 in reasonable condition |
| Level 3 (Building Survey) | Thorough inspection of structure and condition, with repair advice and estimated costs. | £700 to £1,500+ | Older, unusual, extended, altered or visibly tired properties, or anything you plan to renovate |
When to choose which
- New build: no survey; a snagging inspection instead.
- Flat in a modern block: Level 1 or 2, plus the lease and service charge questions.
- Typical 1930s to 1990s house: Level 2.
- Victorian terrace, anything with a loft conversion or extension, damp smell, cracks, or a thatched roof: Level 3.
What to do with the report
Every survey finds something; do not panic. Look for: structural movement, damp, roof condition, electrics and boiler age, timber problems, drainage. For anything significant, get a specialist quote and then either negotiate the price, ask the seller to fix it, or walk away. Sellers expect some negotiation after a survey; it is normal.
Down valuations
If the lender's valuer says the house is worth less than you offered, the lender lends against the lower figure. Options: renegotiate the price, find more deposit, or try another lender whose valuer may differ. Your broker will have seen this before.
A note on the numbers. Thresholds, schemes and typical costs are correct as far as we know at the time of writing and are for England and Northern Ireland unless we say otherwise. Rules change and lenders differ. Check the current position, and get advice from a qualified broker before you commit.
Quick answers
Is a survey a waste of money on a cheap house?
Cheap houses are often the ones with problems. A £500 survey on a £150,000 house that finds £15,000 of roof work is the best money you will spend all year.
Can the survey be used to reduce the price?
Yes, if it finds something material. Get a quote for the work and show it to the agent. Most sellers would rather knock something off than lose the sale.
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