The Royal Institution of Chartered Surveyors (RICS) has issued new guidance for the valuation of buildings with cladding to provide “clarity and confidence” to the market.

RICS valuers are expected to work according to the new advice with immediate effect, with the framework intended to “support lending and boost confidence for home buyers and sellers in the public interest”.

In addition, RICS said it will continue to work with lenders and the lending industry bodies to encourage “consistent adoption” in valuations instructions, as well as actively engaging with valuers to implement the guidance.

The latest move follows guidance from RICS issued in 2021 that aimed to reduce the number of EWS1 external wall safety surveys requested by lenders, with high levels of checks required to assess the potential financial impact of cladding on high-rise flats following the Grenfell tragedy in 2017.

The new advice guides valuers on how to take into account any agreed remediation funding and timelines when forming an opinion on the value of properties in blocks of flats with cladding.

RICS observed that the loss of confidence in the fire safety of blocks of flats had “severely impacted the property market and leaseholders”, with many still unable to sell due to the absence of mortgage finance, and, until recently, facing “unaffordable costs” for risk mitigation and remediation. The organisation added that it is committed to “supporting all parties” in tackling the issue. Training and support will be provided to RICS valuers to enable them to apply the guidance.

“The protections brought into law for leaseholders and the pledge made by the lending industry to provide mortgages on properties covered by these protections have enabled us to provide guidance to valuers, ensuring a consistent approach for their lender clients,” said Dame Janet Paraskeva, chair of the RICS Standards and Regulation Board. “This brings much needed confidence to buyers, sellers, and the market as a whole.

“The board is pleased to put this advice into effect immediately, with support of stakeholders, to help those impacted by the building safety crisis,” Paraskeva added.

The new guidance was jointly welcomed by UK Finance and The Building Societies Association, who said it was an “important step forward” in enabling mortgage lenders to provide finance to those buying and selling flats where building safety remediation works are planned.