EWS1 (or equivalent) lender data on mortgage valuations for flats: April 2021 to March 2022, United Kingdom & More News Here

Headlines

Data acquired by DLUHC, supplied by seven mortgage lenders within the UK, reveals that the overwhelming majority of mortgage valuations for flats don’t require an EWS1 type or equal. Between January and March 2022 there have been 55,000 mortgage valuations for flats within the UK by these lenders, with EWS1 kinds or equal being required in fewer than 1 in 10 instances.

During the January-March quarter, an EWS1 type or equal was required by lenders for 9% of mortgage valuations for flats within the UK. This is a slight enhance from 8% within the October-December quarter.

Data acquired by DLUHC from 3 mortgage lenders who supplied peak breakdown data, overlaying 29,000 mortgage valuations between January and March 2022, reveals that EWS1s or equal are requested to a larger extent for larger rise blocks of flats: 50% of mortgage valuations for flats in buildings 7 storeys and above required an EWS1 type or equal in the course of the January-March quarter, the identical as within the October-December quarter.

EWS1s or equal are requested to a lesser extent for medium and decrease rise blocks of flats: Only 6% of mortgage valuations for flats in blocks beneath 7 storeys tall required an EWS1 type or equal in the course of the January-March quarter, the identical as within the October-December quarter.

From January to March 2022, mortgage valuations for flats in buildings beneath 7 storeys confirmed a big variation within the share requiring an EWS1 type or equal by peak.

• Flats within the lowest-rise buildings (1-4 storeys) required an EWS1 type or equal in 2% of mortgage valuations in the course of the January-March quarter, the identical as within the October-December quarter.

• Flats in mid-rise buildings (5-6 storeys), required an EWS1 type or equal in 27% of valuations in the course of the January-March quarter, the identical as within the October-December quarter.

Introduction

External wall hearth evaluate course of kinds, generally generally known as ‘EWS1’ kinds, have been developed by the Royal Institution of Chartered Surveyors (RICS), UK Finance and the Building Societies Association to help the valuation course of for high-rise residential buildings with cladding. An EWS1 type is just not a authorities or regulatory requirement, neither is it a constructing or life security evaluation. RICS revealed steering on the factors that must be used to decide whether or not a constructing wants an EWS1 type, which was final up to date 28 January 2022 (RICS, 2022).

There is a low incidence of fireside spreading in blocks of flats^{[footnote 1]} and motion is being taken to deal with business and regulatory enforcement failings uncovered by the Grenfell Tower tragedy throughout the minority of blocks of flats the place potential dangers do exist.

This data launch publishes data on the variety of EWS1 kinds or equal which were required as reported by 7 main lenders within the United Kingdom. This data launch is an ad-hoc launch and doesn’t represent an Official Statistics or National Statistics launch.

DLUHC has acquired month-to-month data in an aggregated, anonymised format for the interval April 2021 to March 2022. Lenders have supplied figures for the whole variety of valuations carried out for flats, and the quantity of those valuations the place an EWS1 type or equal was required. Where doable, these data are categorised in accordance to constructing peak.

Three of the 7 mortgage lenders supplied peak breakdown data, overlaying 29,000 mortgage valuations for the January-March quarter. Two of the 7 mortgage lenders supplied peak breakdown data for February and March 2022, which will be present in desk 5. These further peak breakdowns haven’t been included within the different tables to permit a constant comparability. The publication of lenders’ EWS1 data shall be up to date quarterly.

These data are as reported to DLUHC and characterize the vast majority of the lending market.

Data tables

Table 1. Quarterly mortgage valuations and EWS1 type necessities

	April 2021 to March 2022	April to June 2021	July to September 2021	October to December 2021	January to March 2022
Total variety of mortgage valuations for flats for which data was acquired*	218,000	54,000	55,000	54,000	55,000
Percentage of mortgage valuations for flats the place an EWS1 type or equal was required	9%	9%	8%	8%	9%
Percentage of mortgage valuations for flats the place an EWS1 type or equal was not required	91%	91%	92%	92%	91%

*The determine for flats of all heights (together with unknown peak) is calculated utilizing data from 7 main lenders, the place data had been supplied for this era. Number of valuations are rounded to the closest 1,000.

Table 2. Quarterly mortgage valuations and EWS1 type necessities, by peak

	April 2021 to March 2022	April to June 2021	July to September 2021	October to December 2021	January to March 2022
Total variety of mortgage valuations for which peak breakdown data was acquired1	107,000	29,000	25,000	25,000	29,000
Percentage of mortgage valuations the place an EWS1 type or equal was required – Lowest Rise (1-3 or 1-4 storeys)2	2%	2%	2%	2%	2%
Percentage of mortgage valuations the place an EWS1 type or equal was required – Mid Rise (4-6 or 5-6 storeys)2	23%3	18%3	23%3	27%	27%
Percentage of mortgage valuations the place an EWS1 type or equal was required – Combined lowest rise and mid-rise (beneath 7 storeys)	6%	6%	6%	6%	6%
Percentage of mortgage valuations the place an EWS1 type or equal was required – High Rise (7 storeys or extra)	51%	52%	52%	50%	50%

¹ Number of valuations is rounded to the closest 1,000. These figures are calculated from data from 3 main lenders, as these lenders had full peak breakdowns for all valuations.

² Data collected from April to July 2021 aren’t straight comparable to data from August 2021 onwards. From April to July 2021, two lenders group 1-3 storeys collectively, and one lender teams 1-4 storeys collectively, and equally two lenders group 4-6 storeys collectively and one lender teams 5-6 storeys collectively. From August 2021 onwards, all lenders have grouped 1-4 storeys collectively and 5-6 storeys collectively.

³ These figures shouldn’t be used to estimate the share of valuations in 5-6 storey buildings requiring an EWS1 type or equal, as a result of from April to July 2021 two lenders embrace 4 storey buildings within the mid-rise class and constructing peak can have an effect on whether or not an EWS1 type or equal is required.

Definitions

Lenders both use EWS1 kinds, or their very own in-house equal.

“EWS1 form or equivalent was required” contains flats in buildings the place an EWS1 type or equal was already held for the constructing. Therefore, these figures are probably to be larger than the variety of new EWS1 kinds or equal that lenders request.

Mortgage valuations refer to the whole variety of valuations accomplished as a part of a mortgage utility course of, overlaying regulated mortgages, buy-to-let mortgages and second-home mortgages. Cash purchases aren’t included. These data don’t replicate mortgages granted or gross sales.

Data high quality

Data is supplied by lenders to DLUHC in an aggregated, anonymised format. DLUHC consequently doesn’t have oversight of lenders’ assortment methods and high quality procedures. This is the third data publication. DLUHC are persevering with to work with lenders with a view to additional improve its high quality and search additional data to higher perceive the affect of EWS1 requirement on mortgage transactions.

Lenders had been requested to present month-to-month data from April 2021 onwards on EWS1s. However, there are some gaps for particular months from completely different lenders. Where month-to-month data are lacking, DLUHC have gone again to lenders to request these data, however DLUHC haven’t tried to impute lacking data. In this publication we’re updating to embrace probably the most up to date data, for the interval January 2022 to March 2022.

Where peak data have been supplied by lenders, there may be inconsistency under 7 storeys. Data collected from April to July 2021 aren’t straight comparable to data from August 2021 onwards due to discrepancies in peak brackets under 7 storeys. Height has a big affect on share of valuations requiring an EWS1 type or equal, with valuations in decrease rise blocks having decrease percentages of EWS1 or equal needed. Therefore, this determine is probably going to be decrease than the share of valuations in 5-6 storey buildings which require EWS1 kinds or equal, due to the inclusion of 4 storeys for two lenders from April to July 2021.

This publication covers the newest quarter of data (January-March 2022). We goal to replace this publication on a quarterly foundation.

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