Whenever someone buys a new home or remortgages their current one their mortgage lender is required to get a valuation of the property from an independent valuer. In recent months, valuers and lenders have found it increasingly difficult to agree on how to value accurately high-rise buildings with cladding on them.

A little over two years ago the horrendous fire at Grenfell Tower led to an urgent reassessment of how we assess fire risk in other high-rise buildings (defined by the government as those over 18m). The government banned the use of unsafe ACM cladding, like that used on Grenfell Tower. Testing of other types of cladding used on hundreds of buildings across the country is currently underway. The government has said it will pay for the removal of ACM cladding on social housing blocks and create a fund for private blocks to access. Additionally, some developers, building owners and insurers have already stepped in to pay for works in buildings they are responsible for.

The banning of unsafe ACM cladding and concerns about the fire risk of other types of cladding has made it difficult to assess the value of properties in high-rise blocks. Without knowing what type of cladding and fittings have been used, how they were put up, whether remedial work is needed, and who will be paying for it, lenders and valuers have found it hard to understand what the value of a particular property is, meaning homeowners have been having difficulty remortgaging or selling their home.

The professional body for valuers, the Royal Institution of Chartered Surveyors (RICS), and UK Finance have discussed how to resolve this with their members and a wide range of other stakeholders. We have jointly published a one page form that a valuer can request from a building owner or representative that will require a professional with building expertise to confirm that the actual material on the walls is of limited or non-combustibility. If it is, a fire engineer or similar expert will need to say what work is needed. This change will enable valuers to make a valuation and lenders to make a lending decision.

While it is not the culmination of our work on cladding, it is a step forward. In coming weeks and months we hope people trying to find suitable mortgages for home-owners and buyers will find it easier to do so.