The Royal Institution of Chartered Surveyors has set out new guidance to clarify which properties require valuers to complete an EWS1 form and which do not, in a bid to unlock the sales of flats with cladding.

Following a consultation process, the guidance clarifies that where a valuer or lender can establish that the building owner has met the advice in the consolidated advice note, an “external wall system” EWS1 form should not be required.

The form is also not necessary for buildings over 18 metres which have a valid building control certificate in place.

However, Rics says that unfortunately, not all flat owners can benefit from this measure. 

New evidence has prompted a change to the document which initially went out for public consultation, which means that buildings of any height that have high pressure laminate cladding and those of five storeys or higher with linking balconies made from combustible material, will still need an EWS1 form. 

The guidance states that:

For buildings over six storeys an EWS1 form should be required where:

• There is cladding or curtain wall glazing on the building or
• There are balconies which stack vertically above each other and either both the balustrades and decking are constructed with combustible materials (e.g. timber) or the decking is constructed with combustible materials and the balconies are directly linked by combustible material.

For buildings of five or six storeys an EWS1 form should be required where there are either:

• A significant amount of cladding on the building (for the purpose of this guidance, approximately one quarter of the whole elevation estimated from what is visible standing at ground level is a significant amount)
• Aluminium composite material, metal composite materials or high-pressure laminate panels on the building
• Balconies which stack vertically above each other and either both the balustrades and decking are constructed with combustible materials (eg timber), or the decking is constructed with combustible materials and the balconies are directly linked by combustible materials.

For buildings of four storeys or fewer an EWS1 form should be required where:

• There are ACM, MCM or HPL panels on the building.

The guidance further states that, as metal cladding and ACM/MCM/HPL are visually very similar, so where this appears to be present the valuer should confirm with the building owner or managing agent in writing what it is made from.

If this cannot be confirmed the valuer should request an EWS1 inspection.

Rics says 492 professionals are now undertaking the EWS assessment training course and once they are qualified they will be able to assess low and medium risk buildings, so long as appropriate professional indemnity cover can be obtained.

The criteria will be implemented by April 5 and Rics will produce a guide to help consumers understand the process.

Rics standards and regulation board chair Dame Janet Paraskeva says: “We recognise the significant distress caused to leaseholders struggling to sell flats in blocks with external cladding. 

“This announcement is a crucial step in unlocking the market, by ensuring that only those buildings where there are risks of costly remediation as a result of safety concerns from cladding are subject to additional checks.

“The guidance is anticipated to result in a reduction in the number of EWS1 requests which will therefore allow more focus on the assessments of higher risk buildings, which should speed up the overall process whilst ensuring appropriate protection for lenders and purchasers.”

Housing secretary Robert Jenrick MP says: “I welcome Rics new guidance which will mean nearly 500,000 leaseholders will no longer need an EWS1 form – helping homeowners to sell or remortgage more quickly and easily.”

“Backed by nearly £700,000 government funding, almost 500 assessors have now started training so that where valuations are needed these can be done more quickly, speeding up the process for homeowners. 

“The government has also provided an unprecedented investment of £5bn to protect leaseholders from the costs of cladding remediation.”

UK Finance and the Building Societies Association have also welcomed the guidance.

In a joint statement they say: “Government confirmation that it supports the guidance produced by Rics as an appropriate, risk-based and proportionate basis on which to proceed with valuation assessments, in line with the building safety Consolidated Advice Note published in January 2020 is also a welcome and necessary step for lenders.

“We anticipate that many lenders will implement this guidance, which should see the number of EWS1 requests fall. However, this is a decision for each lender to make based on their own risk appetite.

“Those buying a flat should understand that a decision made by a valuer not to require an EWS1 inspection under the new guidance is no guarantee that fire safety remediation works will not be required in the future.”