Source · Select Committees · Public Accounts Committee
Recommendation 20
20
In response to our concern that leaseholders are receiving nil valuations, the Department told us...
Conclusion
In response to our concern that leaseholders are receiving nil valuations, the Department told us that this is an “industry issue” but it is engaging with lenders and involving the Treasury on this.63 UK Finance wrote to us to say that it has been working with the sector to resolve valuation issues of high-rise buildings, which includes the creation of a sector-wide database of completed EWS1 forms.64 The government has committed to providing necessary funding for this.65 The Department told us that the process is not intended to be used for all properties, i.e. those under 18 metres. It told us that it and RICS are working to clarify the role and purpose of the form.66
Government Response
Not Addressed
HM Government
Not Addressed
5.3 The department is aware that some lenders and valuers are using the RICS EWS1 valuation process for multi-storey, multi-occupancy residential blocks of any height. The department does not support this blanket approach, especially for lower rise blocks. The department has therefore been encouraging lenders to adopt a more proportionate response and use other equivalent evidence to support building safety and valuation assessments.