Without a safe foundation, a house is almost worthless.
Subsidence can affect the foundations of a house. It is something many homeowners are wary of.
But do you need to declare subsidence when selling your property? Keep reading to find out.
What is subsidence?
Subsidence is when soil shrinks and causes the ground to sink.
If a house is on top of a patch of land with subsidence, it may move downwards and thus be unsafe.
Common signs that a house has subsidence include:
- Cracks in walls and windows
- Doors sticking
- A property leaning.
What causes subsidence?
It is often caused by long periods of hot and dry weather.
It can also be caused by:
- Poor foundations in buildings
- The impact of nearby trees
- Water leaks and flooding
- Mining
How common is subsidence?
Subsidence is a common problem in the UK, although the severity of its effects can vary.
Data from Association of British Insurers shows 23,000 domestic subsidence claims in a recent year.
This figure lists the cases identified by owners. There are plenty more undetected or are not serious enough to report on.
As mentioned further above, subsidence is common on land that was once a quarry.
There are properties built in a former sandstone quarry facing subsidence.
Do you have to declare subsidence when selling a house?
Yes, you need to declare subsidence when selling your house.
It is one of several essential points about a property that all sellers must declare.
There are two types of subsidence:
- Historical subsidence: As the name suggests, this means that subsidence has happened in the past
- Ongoing subsidence: This means that the problem still exists.
If your building has either type of subsidence, you need to declare it.
A surveyor will usually detect subsidence when inspecting your property.
But even if they miss it, you should say that the house has a history of subsidence.
At that point you need to be completely honest.
You must also declare that underpinning has taken place, if that is the case. We have explained more on what this is further below.
How much does subsidence decrease my property value by?
A history of subsidence can reduce your property’s value by up to 25%.
If the subsidence is ongoing and still hasn’t been fixed, it is likely to reduce your value by this figure.
Your new buyers will be taking on this challenge. This includes the costs and time associated with fixing it.
If subsidence is fixed, the decrease in value will be smaller. With high-quality underpinning, you may experience a value drop of around 5%.
What is underpinning?
Underpinning is the name given to strengthen the foundation of an existing building.
This is the most common and effective solution for subsidence on a house.
It is expensive and complicated for construction companies to do this. If you want to get it carried out, you should be ready to pay a sizeable amount.
How much does underpinning cost?
According to Checkatrade, the average cost of underpinning per metre squared is in around £1,500 to £2,600.
The cheapest method is ‘mass concrete pour’, while the expensive solution is ‘piling’.
Challenges of underpinning
Carrying out underpinning is not always straightforward. Not all construction companies offer this service. This limits your options of companies to work with.
The company that completes this service may want a detailed record of work.
They will also want to know about inspections and when the problem began. Gathering this information can be difficult.
If you live in a semi-detached or terraced property, you should give your neighbours two months’ notice. The process of underpinning is usually noisy.
If a tree has caused the subsidence, a tree surgeon may be needed, which adds to the cost and time involved.
Does underpinning affect my property’s value?
Even with an underpinned house, it will reduce the value of your house.
This can be anywhere up to 20% of the property’s value. It depends on the sensitivity of the buyer, and the circumstances.
New buyers only sometimes feel certain that the underpinning is high quality. There is always the (often irrational) fear that the problem will reoccur.
It is illogical that underpinning affects the property’s value. The house is even more secure than those without underpinning. It is prejudices that impact the value in this instance.
Can I sell a house with subsidence?
Yes, you can still sell a house with subsidence.
However, buyers will struggle to get a mortgage on it. If the subsidence is only historic, then a mortgage will still be possible.
You can sell your house with subsidence on the open market in the latter scenario. Keep in mind that the offer you receive will be significantly reduced.
There are other ways to sell your house with subsidence, too. Cash buying companies will buy your property in any condition.
An auction house should let you list your house at one of their auctions as well.
Both of these are viable ways to find a buyer that is not dependent on a mortgage to complete the sale.