The guidance, ‘Valuation of properties in multi-storey, multi-occupancy residential buildings with cladding’, clarifies the types of properties which will and will not require additional inspections as a result of concerns about fire safety.

It stipulates that for buildings over six storeys, an EWS1 form should be required where:

• there is cladding or curtain wall glazing on the building, or
• there are balconies which stack vertically above each other and either both the balustrades and decking are constructed with combustible materials (eg timber) or the decking is constructed with combustible materials and the balconies are directly linked by combustible material.

For buildings of five or six storeys, an EWS1 form should be required where:

• there is a significant amount of cladding on the building (for the purpose of the guidance, approximately one quarter of the whole elevation estimated from what is visible standing at ground level is a significant amount) 
• there are aluminium composite material (ACM), metal composite materials (MCM) or high pressure laminate (HPL) panels on the building
• there are balconies which stack vertically above each other and either both the balustrades and decking are constructed with combustible materials (eg timber), or the decking is constructed with combustible materials and the balconies are directly linked by combustible materials.

For buildings of four storeys or fewer, an EWS1 form should be required only where there are ACM, MCM or HPL panels on the building.

The guidance mentions that, if metal panel cladding is present, the valuer should confirm with the building owner or managing agent in writing that they are not ACM/MCM/HPL, due to the visual similarities between the two types.

If confirmation cannot be obtained in this situation, an EWS1 inspection should be requested.

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The document aims to create clarity and consistency about when a valuer is not required to request further investigation of cladding through an EWS1 form before valuing a property in a building of multiple occupation. 

It also makes clear that an EWS1 form should not be required for buildings over 18 metres that have a valid building control certificate in place, or where a valuer or lender can establish that the building owner has met the advice in the consolidated advice note.

However, not all flat owners can benefit from the measure, as buildings of any height that have HPL cladding and those of five stories or higher with combustible cladding linking balconies, will still need an EWS1 form. 

This decision — made in light of the evidence received during the consultation — is set to provide appropriate protection for lenders and purchasers.

Dame Janet Paraskeva, chair of the RICS standards and regulation board, which approved the guidance last week, said: “We recognise the significant distress caused to leaseholders struggling to sell flats in blocks with external cladding. 

“This announcement is a crucial step in unlocking the market, by ensuring that only those buildings where there are risks of costly remediation as a result of safety concerns from cladding are subject to additional checks.”

She added that the guidance was anticipated to result in a reduction in the number of EWS1 requests, which would allow more focus on the assessment of higher-risk buildings, thus speeding up the overall process while ensuring appropriate protection for lenders and buyers.

Ben Elder, RICS’ head of valuation standards, commented: “We have reached our final position following very careful consideration of the evidence to ensure that buildings at higher risk of remediation work are appropriately investigated in the valuation process, to support reliable advice by valuers to their lender clients. 

“With the majority of lenders in support of the guidance, we now call on all UK lenders to support the guidance and work with their valuation providers to implement.”

Peter Wilkinson, technical director at Institution of Fire Engineers, stated: “IFE welcomes the RICS guidance to support valuers in adopting a risk-based approach for valuation assessments. 

“IFE will continue to engage with RICS, the government and lenders to help refine the guidance to ensure ongoing compatibility with other fire safety guidance and legislation."