Should I buy a house with subsidence?

Key takeaways

• Subsidence is when the ground beneath a property shifts downwards, causing the foundations to lose support. This can lead to cracks in walls and floors and, in severe cases, buildings may lean.

• Subsidence is caused by a variety of factors, including soil type, water levels, and tree roots.

• Ongoing subsidence is where subsidence is currently happening and requires immediate repair; historic subsidence is where the issues have been repaired.

• It can be difficult to get a mortgage on a property with ongoing subsidence, but easier for properties with historic subsidence.

What is subsidence?

Subsidence is a form of ground movement, where the ground beneath a property shifts downwards.

When this happens, the foundations on which a property is built are no longer sufficiently supported by the ground underneath. This can lead to cracks in walls and floors and, in extreme cases, buildings leaning to one side.

While some small movement is natural, downwards movement that causes subsidence is a major problem. Failure to rectify it can cause huge damage and lessen the value of a property, making it hard to sell.

Mortgage companies are unlikely to offer a loan on a property with ongoing subsidence.

When buying a home, you should get a survey done by a licensed surveyor. The survey should show if there are any signs of subsidence.

What causes subsidence?

There are many potential causes of subsidence. Buyers in higher-risk areas should pay particular attention to nearby trees, drains and historic movement.

What is the difference between ongoing and historic subsidence?

Ongoing subsidence

Ongoing subsidence relates to downwardground movement affecting the foundations that is currently happening. It requires monitoring and may need immediate repair.

In almost all cases, buying a property with ongoing subsidence will make it virtually impossible to get a mortgage. You’ll either need to be a cash buyer or get bridging loan.

Historic subsidence

Historic subsidence relates to downward movement in the past, which has now stopped and the underlying problem has been resolved. Any necessary property repairs have been completed.

Repairing a building affected by subsidence may involve underpinning, which is the process of reinforcing, repairing and/or increasing the depth of a property’s foundations. This work will need to be done and signed off by a qualified structural engineer.

In some cases, it can be resolved by trees being removed, or pipework and drains being fixed.

Vendors will need to tell any buyer about previous work to rectify subsidence and provide any related certificates and documents.

Which documents will be needed if you sell your home after subsidence

If you plan to sell a home which has been affected by subsidence, you will need to provide a number of documents to reassure the buyer and help them obtain a mortgage and buildings’ insurance. These include:

The seller’s property information form

Section 5 of the form asks sellers to provide information about any building works carried out, including underpinning or other remedial works. It is essential that you fill this in truthfully.

Structural engineer's reports

These crucial documents should identify the original subsidence, include any monitoring of the problem, show that the subsidence is no longer ongoing, and include a final report showing full repairs have been completed.

Correspondence with insurer

You will need to provide a paper trail of any insurance claim made in relation to subsidence, including confirmation of the repairs paid for by the insurer.

Details of underpinning or repairs

You’ll need to show documentation detailing the work that has been carried out.

Building regulations approval

If the repair work required Building Regulations approval, you’ll need to provide completion certificates from the local authority.

Tree management records

Where subsidence was caused by trees, you’ll need to show the work that’s been undertaken to rectify the issue.

Ongoing insurance evidence

A buyer's biggest concern is often obtaining insurance, so it can be helpful to provide details of your current buildings insurance and any information showing that the insurer is happy to keep providing cover.

Which properties are affected by subsidence?

Properties affected by subsidence can be found anywhere, but tend to be located:

• Near or in woodland

• Close to large trees

• In old mining areas

• Along unstable coastlines

• In areas with clay soil

How can I find out if a house has subsidence?

When you get a survey done, the surveyor will only be able to give you an indication of whether they suspect subsidence. You will need to arrange for a structural engineer to visit the property to get a definitive answer.

The engineer will produce an in-depth report that will tell you the extent of any subsidence, what repairs are required and how much they will cost.

What are common signs of subsidence?

There are several visible signs of subsidence to look out for inside and outside the house. These include:

• A crack more than 3mm thick

• A diagonally positioned crack that is wider at the top and slimmer at the bottom

• A crack that can be seen both internally and externally

• A crack near a door or window

• A crack which has spread under the damp-proof course

• Wallpaper creasing at the joins where the wall meets the ceiling

• Doors and windows sticking

• Cracks where an extension joins the house

• Floors starting to drop to one side of a room

However, not all cracks indicate subsidence. Cracks can be caused by natural shrinkage and swelling related to changes in weather and humidity levels.

Should I buy a house with subsidence?

If a property has ongoing subsidence, you normally won’t be able to get a mortgage.

In this situation you can buy the property with cash, and then pay for the required repairs. But fixing subsidence can take a lot of time and money.

For properties with historic subsidence, you should be able to get a mortgage. The lender will want to know the details of any structural engineer's report.

However, lenders will require suitable buildings’ insurance and this can be more expensive or harder to arrange for a property affected by subsidence.

A new structural engineer’s report may help confirm a historic problem is no longer an issue.

Nevertheless, in many cases, a recently underpinned house will have excellent new foundations. It can also be the case that properties with historic subsidence may offer good value for money.

Other useful guides

• When should I get buildings insurance?

• What does home insurance cover?

• Should I buy a house with Japanese knotweed?

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