Block Management: Changes to Valuations

12th March 2021

The block management industry has seen significant changes coming into play in relation to cladding and the use of EWS1 forms.

A new industry valuation process for high-rise buildings has been agreed to help people to lend, purchase and sell homes in developments over six storeys. The guidance put together by The Royal Institution of Chartered Surveyors (RICS), The Building Societies Association (BSA), and UK Finance provides clarity about whether valuers need to further investigate cladding through an EWS1 form before valuing a property in a high-rise block.

Some of the main details of the guidance indicates an EWS1 form is only required when:

• Buildings over six storeys have cladding, curtain wall glazing or vertically stacked balconies made from or connected by combustible materials.
• Buildings of five or six storeys or more, that have cladding which covers approximately a quarter of the building or more.
• Buildings of five or six storeys or more that have ACM, MCM or HPL panels on the building which covers approximately a quarter of the building or more.
• Buildings of four storeys or less , if there are ACM, MCM or HPL panels on the building.

The new criteria for an EWS1 Form is:

• Buildings over five or six storeys or more;

AND at least one of the following

• There is classing or curtain wall glazing on the building or the vertically stacked balconies with both balustrades and decking of which are constructed with combustible materials
• There is a significant amount of classing on the building, (which is regarded in this guidance of anything over a quarter of the building)
• There are ACM, MCM or HPL panels on the building

It has been found that metal cladding and ACM/MCM/HPL are visually similar, and therefore if the building owner or managing agent are unable to confirm in writing that that is is not combustible cladding then an EWS1 inspection will need to be carried out.

Click here for the full guidance notes.

If you are a director for a block of flats and require assistance on any of these issues above, please contact Seraph for a quotation for block management services.

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