Thousands of Scottish flats hit by ‘zero valuation’ over cladding fire fears
Thousands of homes across Scotland are likely to be hit by “zero valuations” as a result of fire-risk cladding on the building, MSPS have been told.
The strict new approach taken by mortgage lenders in light of the Grenfell tragedy is having a “significant” impact on Scotland’s property market, experts have also warned.
Multi-storey apartment blocks in Glasgow, Edinburgh and Dundee are among those affected, although the full extent of the problem remainsunknown,holyrood’s local government committee heard.
A growing number of cases emerged in recent months of flats being given a “zero” survey valuation because it could not be verified that cladding used on them met post-grenfell disaster safety standards.
Keith Denholm, from the Royal Institution of Chartered Surveyors, said the issue was
“significant” in some hotspot areas of the country.
“They will be around developments in primarily harbourside developments in Glasgow, Edinburgh, Dundee,” he told MSPS.
“But it’s not limited to specific types of property. It can be other properties and other developments throughout the country. We don’t know the extent of the problem.”
The properties tend to be apartment blocks built from 1990 onwards covered in cladding designed to provide insulation. The Grenfell tragedy showed certain types of cladding can be highly combustible.
A new industry wide test has been established, known as External Wall Systems 1 (EWS1), to assess whether cladding poses a fire risk. But this requires majority approval from individual flat owners in buildings, which may raise practical problems.
Green MSP Andy Wightman questioned whether the scale of the problem could be quantified.
Chartered Building Surveyor Phil Diamond said it was “very difficult” to give a general figure. But he added: “It is substantial and it would be in the thousands.
“I don’t want to say we have triple that amount or half of that amount, it’s in that realm.
“But the bottom line is we do not know until such time as an inspection of the building has been undertaken.”
Brian Smith, from the Law Society of Scotland, warned the “uncertainty” would have a damaging impact on Scotland’s property market.
“Until we’re in a point where there has been some comprehensive evaluation of the extent of the problem and some understanding of what the remediation path is going to be, I think the market is going to continue to be affected by these uncertainties,” he said.