RICS Level 1, Level 2 and Level 3 survey contents, costs and when Level 3 is required
The three RICS Home Survey Standard levels serve different property types. Level 3 is required for older, non-standard, or defective properties.
- Level 1 — Condition Report: traffic light C1/C2/C3 ratings; no valuation; no repair advice; no drainage inspection; ~£250-£400; suitable for new-build; recently renovated; conventional properties in excellent condition
- Level 2 — Home Survey Standard: visual inspection of all accessible parts; C1/C2/C3 ratings with repair advice; specialist investigation recommendations; optional valuation; ~£400-£900; most conventional post-1900 properties in reasonable condition
- Level 3 — Home Survey Premium (Building Survey): detailed inspection including roof spaces (surveyor enters via hatch); floor voids (where accessible); narrative on construction; defects; repair options; cost estimates; ~£600-£1,500+
- Level 3 required for: pre-1920 construction; non-standard construction — BISF; Airey; Cornish Unit; Wimpey No-Fines; Laing Easiform; Orlit; timber frame; steel frame; cob; chalk; clay lump; thatched roofs; subsidence or structural movement history; significant extensions/conversions
Mortgage valuation (V1) vs private survey, Smith v Eric S Bush, Watts v Morrow, surveyor liability and Scotland Home Report
The lender's V1 valuation protects only the lender — BTL landlords must commission an independent private survey.
- V1 mortgage valuation: confirms property is adequate security for the loan; not a structural survey; defects not identified in V1 cannot generally be relied on by the buyer; the buyer receives a copy but cannot rely on it
- Smith v Eric S Bush [1990] UKHL: in ordinary domestic mortgage context, the lender's valuer owes a limited duty of care to the buyer; standard disclaimers cannot exclude this duty (UCTA 1977 s.2(2)); does not apply to commercial or large investment transactions
- Watts v Morrow [1991] CA: damages for negligent survey limited to diminution in market value at purchase date plus direct consequential loss — NOT the full cost of repairs
- Surveyor liability caps: most survey terms cap liability at 3× survey fee or property value; subject to UCTA 1977 reasonableness in consumer contracts
- Scotland mandatory Home Report (Housing (Scotland) Act 2006): Single Survey (RICS Level 2 equivalent; condition ratings A/B/C; valuation) + Energy Report (EPC) + Property Questionnaire — all properties marketed for sale must have Home Report available to buyers