SAVA Technical Bulletin November 2016

TECHNICAL BULLETIN For Residential Surveyors

ASSESSING GARAGE CONVERSIONS

A step-by-step approach Page 04

UPGRADING CONSERVATORY ROOFS

A breach too far?

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THE ‘INSIDE’ GAS METER

The story continues Page

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UNDERTAKING INVESTMENT VALUATIONS

Are valuers asking the right questions?

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CONTENTS 03

THE TECHNICAL BULLETIN

WELCOME TO THE TECHNICAL BULLETIN

FOR RESIDENTIAL SURVEYORS

A message from the editors

Welcome to the Technical Bulletin for Residential Surveyors. This Bulletin is designed for residential practitioners who are members of RICS and/or the SAVA Scheme.

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ASSESSING GARAGE CONVERSIONS

Produced jointly by BlueBox partners and SAVA, here you will find technical articles, updates on convention changes and best practice etc. We hope you will find this useful in your day to day work and we welcome any feedback you may have and suggestions for future publications.

A step-by-step approach 08

UPGRADING CONSERVATORY ROOFS

CONTACT SAVA

A breach too far?

Head office: SAVA, National Energy Centre,

Davy Avenue, Milton Keynes MK5 8NA Telephone number: 01908 672787 Email: bulletins@nesltd.co.uk Web: www.sava.org.uk

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‘INSIDE’ GAS METERS The story continues

CONTACT BLUEBOX

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Office hours 09.00-13.00 please contact on mobile outside these hours

UNDERTAKING INVESTMENT VALUATIONS

Head office: Cambrian House, 51 Broad Street,

Chipping Sodbury, Bristol BS37 6AD Telephone number: 01454 329933 | 07989 406168 Email: chris.rispin@blueboxpartners.com Web: www.blueboxpartners.com

Are valuers asking the right questions?

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CPD

CPD FOR RESIDENTIAL SURVEYORS

CPD is a commitment by members to continually update their skills and knowledge in order to remain professionally competent. The Technical Bulletin is worth 30 minutes of CPD and can be recorded as such. More CPD can be found on the SAVA website.

The new HomeBuyer Report and assessing building movement 19

PHOTOGRAPHY FRAMING

Understanding the importance of framing when taking photos

SAVA is wholly owned by National Energy Services Ltd. (NES) While every effort has been taken to ensure the accuracy of all content in this publication, NES and BlueBox partners take no responsibility for any errors or omissions in the content and the views expressed in this publication are not necessarily those of NES or BlueBox partners.

Neither NES nor BlueBox partners can accept any liability for any loss or damage suffered as a result of the content or opinions expressed.

All rights in this publication, including full copyright or publishing right, content and design are jointly owned by NES and BlueBox partners, except where otherwise described.

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WELCOME TO THE TECHNICAL BULLETIN Welcome to the Technical Bulletin for Residential Surveyors produced jointly by BlueBox partners and SAVA. Although this is Issue 24 of the Technical Bulletin, this is the second issue jointly produced by both organisations.

This Bulletin is designed for residential practitioners who are members of RICS and/or the SAVA Scheme and here you will find technical articles, updates on convention changes and best practice etc.

We were very pleased with the response to our first jointly produced Technical Bulletin. We had some wonderful feedback and you will see that we have re-visited the Internal Gas Meter.

As before, we hope you will find this useful in your day to day work and we really welcome any feedback you may have and suggestions for articles and items to be covered in future publications.

HILARY GRAYSON

CHRIS RISPIN

DIRECTOR OF SURVEYING SERVICES SAVA

MANAGING DIRECTOR BLUEBOX PARTNERS

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ASSESSING GARAGE CONVERSIONS A step-by-step approach PHIL PARNHAM DIRECTOR, BLUEBOX PARTNERS

Is the residential domestic garage a thing of the past?

Yes, according to an article on the ‘This is Money’ website (www.thisismoney.co.uk, 13 November 2015). Reporting the results of a survey carried out by Sainsbury’s Car Insurance, nearly four million homeowners have converted their garage into living space over the last 20 years. Of these:

(sometimes only partly) within the existing footprint of the house; • Attached carport – although this can’t be considered

as a garage, many owners add additional walls and roof areas (often informally) that can change the nature of the feature.

• Most converted garages are workshops (26%) or

offices (20%)

Step one – does it have permission?

This has to be the first question to consider and there are three types of approval:

• 16% have been knocked through to be part of the

living space in the main house; and

• 13% have converted to a bathroom/shower room while

Planning permission – according to the Planning Portal (www.planningportal.co.uk), planning permission is not usually required providing the work is internal and does not involve enlarging the building.

7% use them as a playroom for the kids.

Whether or not this research is an accurate representation of the situation, it fits in with what we are seeing on surveys and inspection. Increasing numbers of owners are using their garage for uses for which they were not originally designed. In this article, Phil Parnham outlines what we should look for when we encounter a converted garage.

However, this ‘permitted development right’ has been removed from some properties. Typical examples include: • New housing developments where there might be a

planning condition;

Different types of garage

• Conservation area especially where there is an ‘article

Before we get into detailed checklists, it might be worth reviewing the most common types of garage:

4 direction’ or the building is listed;

• Some houses that have been converted; and

• Detached garage – this sits away from the house and

• Flats and maisonettes.

is not connected in any way;

• Attached garage – a common feature on many

You should include an appropriate recommendation in the ‘legal adviser’ section.

housing developments where the two buildings share one common wall and there is usually a connecting door;

Building regulation approval

The conversion of an attached garage, or part of a garage, into habitable space will normally require approval under

• Integral garage – this type is accommodated

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Normally, the following elements of the conversion will have to satisfy the requirements of the Regulations when converting a garage. For example: • Doors and windows • Drainage

building regulation standard, I often use the following phrase: Although you will not know whether the garage has the appropriate approvals in place until your legal adviser has investigated the matter, a number of features indicate the conversion may not meet current standards. These include:

• Electrics • External walls

• The roof, floors and walls are unlikely to be thermally insulated;

• Internal walls

• The electrical installation is below standard; and

• Roofs

• The internal faces of the walls are damp.

• Floors

Similarly to planning permission, you should always include a recommendation in the legal adviser section. However, this should not be a vague and imprecise mention but should: • Name and describe the specific conversion – because

there might be more than one. The legal adviser won’t know this;

• The ‘approval’ should also include the issue of the

‘final certificate’ to show the project has been properly signed off.

These will need upgrading and this work will be disruptive and costly.

Critical indicators of adequacy

The elements controlled by the Building Regulations are a good starting point for this assessment and these include:

New wall in the former garage door opening

In most cases, this is likely to need an appropriate foundation. This is impossible to check so look to see if the new wall appears robust and properly built. Thin, timber framed infill panels are unlikely to meet the requirements.

We also add a short ‘what if not’ clause aimed at helping the client understand the implications if the proper permissions are not in place. A typical example would be: ‘If the conversion does not have the appropriate approvals, it could: • Affect the future saleability of the property; • Require retrospective building regulation approval. This can be expensive and disruptive; and • In the worst cases (for example, listed building), the unapproved work may have to be removed completely’.

Party wall award

If the garage shares a wall or is connected to a roof of the neighbouring property, the conversion work should have been subject of a party wall agreement. The legal adviser should be asked to confirm this and although this would not be a retrospective requirement, the absence of an agreement is another possible indicator of sub-standard or informal work.

Step two – is the conversion likely to meet current standards?

Even if you properly advise your client to check whether the appropriate permissions are in place, you should still assess the standard of the conversion. This is because your client’s legal adviser is likely to take weeks to find out the answer to those questions and any bad news is usually discovered a few hours before contracts are exchanged.

Alternatively, if you look for a few critical indicators you may be able to put your client in the right “ball park” so they can take a purchase decision earlier. For example, if I inspect a garage conversion that is likely to be below the current

Figure 1: this garage has been converted and the front wall looks robust and well built (as long as you ignore the gutter leaks).

The floor

In most circumstances, the floor will require upgrading to meet the thermal regulations. This usually involves a new DPM, a layer of thermal insulation with either a screed topping or timber floor panels. Whatever the construction, this is likely to add 100 - 150mm to the floor level.

Look at the door threshold to the main house and existing garage door. Do these show evidence of a new/altered step? Garage floors are usually lower than those in the main house so level floors between the two could suggest they have been upgraded. A change of level down may indicate the floor may not have been upgraded.

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at the junctions between the ceilings, walls and floors for evidence of mould growth.

Upgrading thermal insulation in the roof

As with the walls and floors, the roof will need upgrading too. Pitched roofs will be straight forward (270 – 300mm thick mineral wool with ventilation) but with a flat roof there are two choices: Cold roof - this can be suitable where the roof covering is in satisfactory condition (so not very often then). With cold roofs, roof space ventilation is required above the insulation so the thermal standards cannot be achieved by insulation between the joists alone. Therefore, some thermal insulation has to be fitted below the joists required (and lowering ceiling heights). The visual depth of the flat roof (usually the fascia board around the edge) would not have changed and you might be able to see ventilation around the eaves.

Warm roof - Where the flat roof is recovered, thermal insulation is usually placed on the decking changing it into a warm roof. No ventilation to the roof space is required and because all the insulation is placed on the deck, the visual depth of the roof construction will be much greater but without a loss of head room.

Figure 2: This accidental ‘green roof’ is over the converted garage shown in figure 1 and is linked to the garage of the neighbouring property that has not been converted. The covering appears to be the same as next door so this should be a cold roof. In such cases, watch out for lower ceiling heights and look for ventilation around the eaves.

Where the garage is linked with that of its neighbour, has the junction between the two roof coverings been properly made? Does it look vulnerable to water leaks?

It is vital the new DPM in the floor is linked with the DPC in the wall and although this will be hidden, it is vital to check the floor/wall junction for dampness especially to the wall between the main house and the new space.

Electrical work

IMPORTANT NOTE: Check those head heights! Although minimum head heights have been removed from the Building Regulations (apart from above staircases and below sloping ceilings), most commenters agree that ceiling heights should not be less than 2.1m.

A new circuit is likely to be needed and especially if the conversion includes a kitchen, bath or shower, approval under Part P of the regulations will be required. Ask to see documentary evidence (either building regulation final certificate or a competent person’s scheme) and inspect the consumer unit; in most cases the garage circuit should be properly identified and protected with an RCD.

The walls

Smoke alarms

From a structural point of view, the walls have to be robust.

Standard cavity walls and one brick thick (225mm) solid walls are usually satisfactory but care should be taken with half brick thick walls with piers, timber frame structures and concrete panels.

If the new rooms and spaces do not have a door out to fresh air then the conversion will require hard wired smoke alarms in the new rooms as well as in the circulation areas of the existing house.

Most garage walls will require additional insulation. The easiest way to achieve this is through internal insulation and around 75 – 80mm of rigid foam insulation boards will be required. Look for additional thickness at door and window openings with overall wall widths of 200 – 250mm.

Where the new room does not lead directly to an entrance hallway with a door to outside air or a door of its own, a window should be big enough to act as a means of escape.

The usual dimensions apply.

If the garage is linked with the neighbouring garage, the party wall will have to be sound proofed and have adequate fire resistance. Does it look like an additional thickness has been added on to the wall? Does it seem robust?

If the radiators are extended into the new space then they will need both time and temperature controls. If the heating appliance is new (for example a wood burning stove), it may need an application of its own.

Fire escape (windows)

Heating

Cold bridging - In a similar way to the DPC/DPM junction, the thermal insulation in the walls, floors and roof all have to link up properly. If not, condensation will form on any cold bridges and mould growth will inevitably follow. Look 06

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Other critical indicators

adviser referrals may be appropriate. However, if you pick up some worrying signs then a condition rating 3 with a warning to your client of sub-standard work may be appropriate.

Integral garages

These are enclosed within the footprint of the existing dwelling so fire resistance and sound proofing of the ceilings and walls are likely to be very important.

Whatever your choice, make sure you take photos and record the critical indicators and the rational you’ve used to come to that decision within your site notes.

Carports

As long as the carport has two open sides, it doesn’t usually need Building Regulations. However, if an owner encloses it with a couple of flimsy walls, they could create a number of problems: • It could affect the ventilation requirements to rooms in

the main house;

• It could necessitate the upgrading of the fire

resistance of any doors or windows opening into it;

• The daylight into the main house could be affected,

and

• It may affect gas appliances that discharge out under

the carport.

Roof between the house and a detached garage

In issue 23 of the Technical Bulletin, we described a complaint that involved a gas meter in an external housing that was enclosed by the construction of a new corridor between a bungalow and a former detached garage. This is a common DIY project that can cause similar problems to those described for carports above. The new ‘corridors’ are often used as informal utility rooms housing washing machines, dryers and dishwashers with all their attendant electrical and drainage connections. Many will not have the required building regulation approvals (see figure 3 for a typical example).

Assessing the garage conversion

As described in Step Two, our approach to assessing a garage conversion is to look at a series of ‘critical indicators’ based on the building regulation standards for garage conversions. Although you will not be able to come to a definitive assessment on each one, you should be able to get a ‘feel’ for the overall standard. If your impression is favourable, then a condition rating 1 with the usual legal

Figure 3: the main house is to the left and the garage is to the right. The passage has been roofed over using glass in aluminium glazing bars and the resulting space used as a utility room. The electrics and drainage connections were well below current standards and the fitted carpets laid over the original concrete path.

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UPGRADING CONSERVATORY ROOFS A breach too far?

ALAN APPLEBY DIRECTOR, BLUEBOX PARTNERS

When inspecting conservatories it is tempting for surveyors to treat them as ancillary rooms outside planning and building controls but is this a realistic approach? Many homeowners do not dismiss these spaces so readily as they can often perform an important role in the enjoyment of their home.

In Planning terms, a conservatory is just another extension and is included within the allowance for permitted development. So this means that providing the building is not Listed or in a Conservation Area or similar restricted location, then subject to various size, height and position restrictions, it does not require consent.

In this article, Alan Appleby from BlueBox partners provides some useful tips and definitions to help with assessing and reporting on these structures and also discusses the developing trend of upgrading conservatory roofs.

However, for Building Regulations things are not quite so straight-forward. Up until 2010 a conservatory was required to have 50% of the external walls (excluding those within 1m of the boundary) and 75% of the roof glazed with a translucent material. Current guidance is now that a

The mystery of the missing doors

So there you are inspecting a property with a conservatory addition and you discover that the doors which used to separate it from the rest of the house have been removed.

No doubt this seemed like a simple and logical step for the owners (past or present) to take as it allows their accommodation to flow out into the delights of their new sunny haven.

This all seems such a good idea until the owners realise that now the house will get much colder in the winter, much hotter in the summer and that they can’t hear themselves think when it’s raining. What’s more, if it has a plastic roof, burglars will now only need a sharp knife to get into the house!

So exactly what is a conservatory anyway?

In order to advise our clients more fully, we need to remind ourselves of some basic principles.

Figure 1: The kettle is close at hand

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conservatory fitted with an insulated lightweight solid roof with roof lights (taken from the LABC technical guide ‘Solid Roofs to conservatories’).

But surely if these so called conservatories are in breach of Building Regulations anyway, isn’t this just a case of pouring ‘Good Money After Bad?’ Well perhaps, but let’s take this a step further.

Figure 2: The sun is pouring in

conservatory (and a porch) has to: • Have a ‘significant proportion’ of the roof and walls

glazed (exact percentages are no longer given);

• Be at ground floor level and not exceed 30 sqm; • Be thermally separated from the dwelling by walls,

windows and doors equivalent in insulation terms to the existing dwelling’s external elements;

Technically of course, the revised structure will no longer be a ‘conservatory’ so it will therefore require compliance with Building Regulations but fortunately, not all of it! Whilst the new roof will require to be compliant in all respects (structure, insulation, drainage etc.), the remainder of the building only has to be ‘no more unsatisfactory than before’. Maybe a better phrase would have been ‘Making the Best of a Bad Job’?

In structural terms it is worth noting that these new lightweight panels are about 5% heavier than glass so where the previous covering was polycarbonate sheeting, there will almost certainly be a need for greater support through the walls/frames and maybe even at foundation level. This could result in a lot of additional work to get this through the building regulation process so that the allimportant final certificate can be issued.

• Be compliant with Part K (safety glazing); and • Have an independent heating system that is separate

from the main house.

If you can tick all these boxes, you will have yourself a ‘conservatory’ (or a ‘porch’) and it will be exempt from Building Regulations - well nearly! Don’t forget that any electrical work will be subject to Part P, drainage works such as moving a soil pipe or building over a sewer (particularly if shared) as well as the Part K safety glazing requirements mentioned above. What’s more, although the actual use of the structure is not included in any definition, what items or functions are found in a ‘conservatory’ may also affect this exemption. The AGA shown in Figure 3 would have been a determining factor even if the thermal separation had still been present.

What to advise?

Ideally we should aim to get these structures back within the definition for exemption in order that the technical breaches can be resolved. For instance, reinstating the external doors/windows and/or ‘separating’ the heating - this can be done using the main system but there are catches and it does require Building Regulation compliance for both the heating system and the glazing. However, some of these recommendations will be looked upon as backward steps in the eyes of the owner or buyer so it is not surprising many owners look for another solution to try to ‘fix’ the problem. This brings us to…

The latest home improvement fad!

If you take a look at the back of any passing window fitter’s van you are likely to see an advert for solid replacement roofs for conservatories. Figure 4 shows an example of a

Figure 3: Feels like alfresco dining

Reporting on conservatories in RICS Home Surveys

In all formats of the RICS Home Surveys – this now includes the Condition Report, HomeBuyer Report (Survey), Home Buyer Report (Survey and Valuation) and the Building Survey – conservatories are included in section E7.

E7 conservatories/porches

Non-compliant conservatory/porch The conservatory/porch is unlikely to meet planning/ building regulation requirements for the following reasons (delete/amend as appropriate):

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Condition rating 3 (further investigation) If the new roof covering does not have approval, retrospective building regulation approval will have to be obtained from the local authority and this can be costly and disruptive.

Further advisory phrases

Depending on the circumstances, you may want to add further advisory phrases where appropriate: The conservatory/porch restricts ladder access to the windows serving to the upper floors, rooms in roof or loft conversions. This can be a safety risk if there is a fire (see J3).

Some types of conservatory/porch construction can be difficult to repair (especially older PVC types). Rather than continue to repair, you may want to plan for the replacement of the feature.

The porch/conservatory is heated (describe the type). Because of the high rate of heat loss from glazed buildings, it will be expensive to heat during the colder seasons.

Figure 4: “This will make it much cosier for you Mr & Mrs Smith” • There is no thermal separation between the

Highly glazed conservatories/porches will always lose a lot of heat and may suffer from condensation. Although these problems can be minimised, they may affect the enjoyment of this space especially during the winter when it may be too cold to use.

conservatory/porch and the main part of the dwelling;

• The heating in the conservatory is part of the heating

system in the main house;

• The low level glazing is unlikely to be safety glass

Further reading

(describe location);

https://www.planningportal.co.uk/info/200130/common_ projects/10/conservatories

• The electrical/heating installation is unlikely to meet

current standards.

http://www.labc.co.uk/guidance/resource-library/technicalguide-solid-roofs-conservatories-or-porches-0

Condition rating 3 (further investigation) You should ask your legal adviser to investigate whether the feature has all the necessary approvals and explain the implications (see I1). If not, the local council may ask you to alter the conservatory/porch and in the worst cases, the whole structure may have to be removed.

Conservatory fitted with a solid roof The original conservatory/porch has been fitted with a new, solid roof covering. Although there are no obvious defects, this work would have required building regulation approval from the local authority. When not provided with evidence of this, you should ask your legal adviser to investigate this matter.

CAPTION CORNER Really!

Please send us your caption suggestions to bulletins@nesltd.co.uk by 1/1/17 for a chance to win a prize. The winner will be published in the next bulletin!

Do you have a picture for the next edition? Send any photos for consideration to the email address above.

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‘INSIDE’ GAS METERS The story continues

HILARY GRAYSON DIRECTOR OF SURVEYING SERVICES, SAVA & PHIL PARNHAM DIRECTOR, BLUEBOX PARTNERS

Following the last Technical Bulletin, readers Malcolm Scott and Roger Edwards emailed us about the article on the ‘inside’ gas meter. Although we do not have the space to publish their emails in full, they raised a number of interesting issues. For example, Malcolm thought the article ‘…raises more questions than it answered’. Here are a few:

To be clear on what we think should be done: • Practitioners should ask for evidence that ALL parts

of the gas service system have been safety checked within the last 12 months (and this includes all gas appliances, gas supply pipes and meters). Where evidence is not provided during the inspection, then a ‘condition rating 3: further investigation’ should be allocated to the gas supply element (G2 in RICS Home Surveys and F2 in the SAVA Home Condition Survey).

• When is a gas meter ‘inside’? Does this include an

unheated integral garage or where the meter has been enclosed by a porch or a conservatory?

• Regardless of whether the gas service has been

• If an integral garage has been converted to a

safety checked, all parts of the gas service should still be visually inspected by the surveyor and any unusual features recorded in the site notes. This will help support the later condition rating decision. In this particular case, a gas meter with a plastic supply pipe and in a PVC housing on the ‘inside’ of the property should be regarded as an unusual feature.

habitable room, would the gas meter have been checked during the building regulation approval process?

• Regarding meter readers carrying out safety checks,

what happens when a customer provides their own readings?

Which then leads to the question – “What is considered to be on the ‘inside’ of the property?”

Roger, who used to be a gas engineer under the CORGI scheme, thought surveyors would not be expected to know whether a supply pipe should be in metal or MDPE. Instead, it should be the gas engineer who services the appliances who flags up when the gas service pipe is incorrect. According to Roger, ‘The surveyor should stick to what she/he is able to do and that is awarding a CR3 if there is not a valid test certificate for the installation’.

Unpicking the regulations around domestic gas supply

Once you start considering all the legislation relating to the supply of gas into domestic property it can all get a bit geeky.

The key pieces of health and safety legislation covering gas supply are:

We think both Malcolm and Roger’s points are relevant and appropriate. Getting feedback like this helps us all reflect on our practice and make sure we are giving the right advice to our clients.

• Gas Safety (Management) Regulations 1996 –GSMR • Pipeline Safety Regulations 1996 (PSR)

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TECHNICAL BULLETIN They are published by the Health and Safety executive under the Health and Safety at Work Act.

GTC is one of the gas distribution network operators and also provides gas supplies and meters for house builders.

They, in turn, produce a technical guide called “Building Over External Gas Pipes” (GG-TGI-IG-0037).

Responsibility for enforcing health and safety law for gas supply management, transportation and storage forms part of the role of the Gas and Pipelines Unit in HSE’s Hazardous Industries Directorate.

When GTC provides the gas supply to a new property, the gas service pipe connecting the supply to the main in the street to the gas meter at the property will be a polyethylene pipe (PE). They will use a preformed sleeve to provide a conduit that takes the PE pipe from the horizontal to the vertical terminating at the gas meter box, which for new build properties will be located on the outside. This is a standard construction technique for the supplying external gas meters. It should be noted that PE, although used for the external gas supply, is a combustible material. Also, it is worth noting that the gas service pipe will remain in the ownership of the gas distribution network operator.

The Gas Safety (Management) Regulations 1996 (GSMR) apply to the conveyance of natural gas (methane) through pipes to consumers, both domestic and commercial, and cover four main areas: 1. The safe management of gas flow through a

network, particularly those parts supplying domestic consumers, and a duty to minimise the risk of a gas supply emergency.

2. Arrangements for dealing with supply emergencies.

If an external meter box with a PE pipe supply is ‘contained’ in anyway, for instance by building a porch at a later date and thus covering the meter box, then the PE pipe is deemed to be underneath the building and thus no longer compliant.

3. Arrangements for dealing with reported gas escapes

and gas incidents.

4. Gas composition.

The GSMR deals with the management of the flow of gas through the network, but it is the Pipelines Safety Regulations 1996 (PSR) which are principally concerned with the integrity of the pipeline network and at securing safety in the design, construction, installation, operation, maintenance and decommissioning of pipelines.

The guidance produced by GTC states that should any form of structure be built that ‘contains’ the external supply pipe and the meter box (when it was originally designed to be an external meter box) then, in the event that they have not been asked to move the gas supply, they will: • Arrange for immediate disconnection if the gas supply

PSR imposes general duties in relation to all relevant pipelines and additional duties with regard to major accident hazard pipelines.

is at medium pressure; or

• Arrange for disconnection after 30 days if the supply

is Low Pressure (that is less than 75 mbar) allowing for the occupier to arrange for the relocation of the meter box.

The PSR have a supporting Approved Code of Practice (ACOP), again published by the Health and Safety Commission.

Outlet installation pipework, that is the pipework from the meter box going into the property, is the responsibility of the property owner and therefore a Gas Safe Registered Engineer will need to make any changes to that part of the system.

A quick glance around the internet quickly confirms that all of these regulations were not written with the lay person, or even, it could be argued, the average gas engineer, in mind. As with all legislation, they are not an easy read.

Consequently industry has stepped up to the plate to produce technical guidance that translates legislative requirement into practical application. “Industry” can refer to both the infrastructure and network providers and professional and regulatory bodies such as Gas Safe and the professional body for gas professionals, the Institution of Gas Engineers and Managers.

How should a surveyor report on an internal gas meter?

Alarm bells should ring in the following situations: • Where a meter was originally designed to be ‘outside’

but has now been covered over/ contained within, for example:

• A porch • A garage

The HSE in the ACOP document actually refers to the technical guidance produced by the Institution of Gas Engineers (IGE/TD/4). Of particular note from this guidance is:

• A conservatory , ‘sun room’ or lean to • An access corridor

Be aware, converting a carport into a ‘closed garage’ could enclose a gas meter. Whether or not the enclosing structure is a habitable room or heated is not relevant.

• That if a service is installed through a wall, floor or

void between floor or ceiling then it should be of non combustible material

• A PE service should not enter any building, including a

When completing a Home Condition Survey, the SAVA Protocol is very clear on this – a CR3 will instantly be triggered. This can be justified either be because of the

garage or enclosed structure, unless enclosed in a gas tight metallic sleeve.

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TECHNICAL BULLETIN potential hazard (e.g. using the SAVA protocol Box A “A potential hazard exists DEFAULT CR3”) or because such an alteration requires additional investigation. We suggest that you use the facility to report on the Gas Meter separately.

service systems in residential property should take care not to overstep their professional role and terms of engagement. Not only can this expose practitioners to legal challenge, it can be a safety risk for clients who follow well-meaning but incorrect advice from their surveyor.

As a final point, according to Alexander Pope, that well known 18th century residential surveyor, ‘a little learning is a dangerous thing’ and this is particularly relevant now because technological and regulatory changes are happening all the time.

Please keep the emails coming!

Surveyors who have a deeper knowledge of the various

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UNDERTAKING INVESTMENT VALUATIONS Are valuers asking the right questions?

CHRIS RISPIN MANAGING DIRECTOR, BLUEBOX PARTNERS

them on equal terms to owner occupied property, but as Government has imposed more impositions partly in the way of taxes and the product rules change, then a true risk assessment should be undertaken on behalf of a buyer and Lender.

The significance of how property differs as an investment from the more usual forms, such as shares in companies, was evident recently as the penny dropped for some making more noise than Big Ben chiming 12 noon.

It was reported in the The Times on July 8th 2016 that investors in property funds were surprised that fund managers were continuing to collect their fees on the funds even though the managers had suspended withdrawals to prevent a firesale of the underlying assets due to the Brexit vote.

There is a strong argument that the market has determined the value of such properties and therefore why question using owner occupier comparables? However, valuers have a duty under the mandatory requirements of the Market Value definition to assume that both the buyers and sellers are acting “knowledgeably and prudently�. This in essence supports the purpose of an independent and objective valuation process so that illogical, misinformed, special or misguided transactions should be questioned.

The explanation is that the property investments still incur costs as the properties still need to be managed, valuations are undertaken and properties traded, which all incurs a cost. The fact that such investments are tangible assets, occupied by humans and machines, their condition deteriorates and have numerous costs, seems to have passed by some investors.

This of course is not only true for the commercial properties managed by the big investment funds, but is equally true of residential investments, now better known as Buy to Let investments. Since their inception many investors and Lenders have treated 14

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TECHNICAL BULLETIN In many ways the failure to understand that property is not like investing in Shares or Bonds indicates a fundamental point with the Market Value definition in that the buyers are not acting either knowledgeably or prudently so it is a hypothetical situation. A true analysis of a residential investment often demonstrates that the basic net return does not support the investment if the cost of borrowing is taken into account. However, for investors in it for the long term, the capital appreciation of the property has generally resulted in an adequate return. However, this is speculative and it could be argued that for a residential valuation undertaken under the Red Book mortgage specification, speculation has no place in such a valuation. Investment rates, in the UK at the time of writing, are particularly low and have been for some time.

competing sources for tenanted property, such as a nearby hospital, which would be a positive.

Are the surrounding uses compatible with owner occupation?

If the surrounding property is suitable for owner occupation then this provides alternatives and reduces the risk of just one form of occupation. Some adjacent uses may be more acceptable to tenants than owner occupiers.

Are there the added advantages of good communications and is this an area where that is significant?

Is access to tube stations or motorways of particular significance?

The graph on page 14 (Source: Financial Times 13th July 2016) shows where Government Bonds stood at that time taking into account the events of the previous month which included the Brexit vote. These rates are considered the benchmark for any investment calculation and whilst they are so low it is understandable that residential investment property, even with its additional costs, begins to look attractive, especially if the investor is in it for the longer term. The downside to that aspect is that if the property is old in the first place and possibly beyond its original design life, such as a Victorian terrace, then the costs are likely to increase as the fabric of the building deteriorates.

Type and design of property Is the layout of the property suitable for the tenancies?

Students may like the idea of not only a communal kitchen but also a lounge, but professional tenants may seek the comfort of their own room and want more facilities in the actual room, such as an ensuite shower room.

Is there scope to extend the accommodation?

Increasing standards, such as improved energy efficiency, may be impossible to implement or very expensive and therefore impose issues that mean the property is no longer a viable investment, due in part to Government involvement. It is not that many years ago that many Local Authorities were undertaking wide scale “slum” clearance programmes because the property was defined as “Unfit” for human habitation. This included such matters as steep staircases that were considered uneconomic to change.

As time moves on standards change which may mean an Authority can take enforcement action against a Landlord; so are all such issues factored in when a Landlord purchases a residential investment?

Room in the roof or basement accommodation. Or has the property been developed already to its fullest extent?

What is the condition of the property?

Landlords (and Lenders in possession) may need to employ their own contractors, so maintenance will be more expensive and more frequent for older properties. Landlords may not have the advantage that owner occupiers have of undertaking their own DIY work. Damp works are particularly important as this is a key area that attracts enforcement procedure from the Authorities if the tenant complains.

Is the original structure of traditional build?

Assessing the risk

Some system built property does not attract a mortgage, but is often considered to be a good investment property as the size of accommodation suits the tenants.

Many academics ask the question of their students “Is Valuation an Art or a Science?” Investment valuation techniques are usually the closest that valuers come to the scientific aspect of valuation. Professor Brian Cox in his programme “The Wonders of the Universe” stated that science can answer anything provided you know the correct questions to ask. So are Valuers asking the right questions when it comes to valuation of residential investment properties? Here are some points to consider:

Modernisation Tenants are getting more discerning and may seek more modern interiors, which imposes more frequent capital costs on the investor. The owner occupier can be more flexible.

Utility costs

Location

The investor has little control over how the tenants will use the heating or amount of water and so more energy efficient property could be considered an advantage.

Is the property in an area where there has been a consistent demand by suitable tenants?

Use of the property

Are there any foreseeable risks to finding tenants e.g. has the local University got a policy of building its own student accommodation which could reduce demand or are there

The more occupants, the more intensely the property is used so then more routine maintenance is required.

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The buyer of a property may insist on certain works being undertaken and, depending on the state of the housing market, this may be at cost to the seller, so a reduction on the capital growth. Regrettably there is limited, if any, published research into the benefits of capital growth in residential property and what this equates to in real terms.

It is also a lottery as to what the rate of inflation will be in a particular area, partly as the sale time is not predictable.

However, by following certain criteria those properties at less risk of growth can be established, but the valuer needs to ensure that his/her client is fully aware of the risks and shares that decision making responsibility.

Type of lease/agreement What form of agreement is in place – how easily can the investor get access?

In some cases tenants want more security of tenure and this may be advantageous to the investor who is in there for the longer term, but will this suit the Lender?

Market factors The ease with which the property can be sold influences the illiquidity to the investor

Consideration of all those factors help a valuer determine the risk at a point in time to an investor. Clearly where the option of owner occupation is readily available the risk reduced, meaning the valuer has the option to use that methodology, but that should be made transparent to those involved in the transaction. Even though the owner occupation route may be the recommended route by the Guidance (either from your Professional body or the client) the valuer should always have regard to how the property would fare as an investment. Comparison of yields on other investment properties is a good benchmark to assess the risks associated with such an investment, but the experienced valuer has collected this information over a period of time and the new starter needs to undertake some comprehensive analysis of the market to develop that expertise.

This may vary from location to location, for different types of property.

All these factors assist the Valuer in determining where this form of investment fits within the spectrum of other investments. Therefore what risk is the investor, and the lender if associated with a mortgage, taking when compared with placing money, say in a Building Society with government protection up to a certain limit? The Building Society will certainly be offering a much lower return to reflect the security of the money and the hassle free investment. The rate of return may vary depending on what restrictions the investor wants to impose on redeeming the investment, so a 3 year term with limited access will usually command a higher reward than instant access to the money. There will be tax on the interest earned. Even so there is no such thing as instant access to a property as it needs to be sold usually involving agents and solicitors with their associated costs. Taxes can be imposed in the form of Stamp Duty and usually Capital Gains Tax if the investment has improved in value.

The answers to the questions may not always be easy to find and in such cases this must impair the confidence in the assessment of risk and ultimately value. Those scientists who determined that the world was flat were clearly asking the wrong questions, so valuers need to ensure they’re getting the right answers to avoid valuations falling flat!

SURVEYORS COMPARABLE TOOL FROM ‘RIGHTMOVE’ FOR SMALL AND MEDIUM SIZED FIRMS BlueBox partners has obtained a unique agreement with the country’s leading property portal, ‘Rightmove’. ‘Rightmove Plus’ has now been improved through the development of the Surveyors Comparable Tool (SCT) so that finding comparable information is much easier. The SCT combines access to the Land Registry data with ‘Birds eye’ and ‘Street view’ all in the same place and much more efficiently. In line with RICS requirements, the reports now provide an audit trail for complete transparency.

For more info, please email info@blueboxpartners.com We are now able to offer a subscription service combined with ‘pay-as-you-click’ access to archived property sales data at a price that is unbeatable anywhere else. We can offer Rightmove Plus (which includes the Surveyors Comparable Tool, access to the Rightmove AVM, and Rental comparables) at £70 plus VAT per; month, which includes 20 free clicks for the Surveyors Comparable tool. This offer is only available through BlueBox partners to small/medium sized firms and sole practitioners, and we think this is a “must have” for any valuer undertaking residential valuations.

Please contact Chris Rispin on 01454 329933 for more information.

Sign up before 31 st December 2016 to ensure 12 months at the 2016 prices

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CPD FOR RESIDENTIAL SURVEYORS The new HomeBuyer Report and assessing building movement PHIL PARNHAM DIRECTOR, BLUEBOX PARTNERS

As the end of the CPD year approaches, BlueBox partners and the SAVA School of Surveying have put together two one-day workshops that will help you meet your professional requirements.

experience into the training room. Although the workshop will be hard work and challenging we also like to think we can have a bit of fun too.

Assessing and reporting on building movement in residential properties

The new RICS Homebuyer Report (Survey) 2016 - Tuesday 29th November 2016, Milton Keynes

- Thursday 8th December 2016, Milton Keynes

RICS has published the details of the new HomeBuyer Report formats known by the acronym ‘HBRS’ and ‘HBRSV’.

These will ‘go live’ in late November 2016. BlueBox partners has been involved with these new developments from the earliest days and this one-day workshop will include the following:

Building movement can be one of the more serious defects in a residential property and can cost many thousands of pounds to resolve. It can also leave the practitioner vulnerable to legal challenge. Faced with these concerns, surveyors often adopt one of two approaches: an overcautious response referring the matter to ‘specialists’ with little justification, or offering rash reassurances based on little analysis of the signs. This one-day workshop will probe this grey area and aim to bolster your diagnostic skills enabling you to give clear and confident advice. This workshop will suit newly qualified surveyors, those in the later stages of their training and experienced practitioners who want to reflect on their own practice. It will be appropriate for surveyors offering the Home Condition Survey as well as those offering the RICS suite of home survey products.

• The difference between the original HBR and the two

new products;

• The new features including the impact of the

Consumer Contract regulations, liability caps and other terms of engagement changes;

• Life without a valuation — the importance of condition

in the HBRS version.

Additionally, the day will cover the main components of the format including condition rating, report writing and safety risks. These skills will be strengthened by applying the techniques to realistic case studies.

The course will include the following: • A review of the causes of damage to residential

properties including those that originate above and below the ground;

Workshop facilitators The workshop will be run by Alan Appleby and Phil Parnham, two experienced facilitators and surveyors who bring a unique combination of skills, knowledge and

• Assessing the cause of the damage to a building –

an objective and diagnostic approach including the inspecting and recording the signs and symptoms,

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TECHNICAL BULLETIN classifying the damage, and identifying the causes of progressive movement;

• Reporting on building movement – serving the client

and protecting the surveyor

• Further investigations and referrals – when calling in

This workshop will be presented by Phil Parnham of BlueBox Partners.

the specialists is justified;

• Using internet-based resources to supplement the

diagnostic process;

CONTINUOUS PROFESSIONAL DEVELOPMENT Engaging. Effective. Accessible. Affordable.

Click to browse our courses

The new RICS HomeBuyer Report (survey) 2016 A one-day practical workshop on the brand new RICS Home Surveys products.

RICS his published details of the new HomeBuyer Report formats to be known by the acronym ‘HBRS’ and ‘HBRSV’ which are likely to ’go live’ late November 2016.

Although not a formal RICS course, BlueBox partners has been involved with these new developments from the earliest days. For example, the workshop facilitators Alan Appleby and Phil Parnham have recently updated and refined the sample phrases used by ‘Worksmart’, the Home Surveys’ report writing software.

Assessing and Reporting on Movement in Residential Properties Building movement can be one of the most serious defects in a residential property and can cost many thousands of pounds to resolve. It can also leave the practitioner vulnerable to legal challenge. Faced with these concerns, surveyors regularly adopt an over-cautious approach referring many of their clients to ‘specialists’ with little justification, or offering rash reassurances based on little analysis of the signs.

This one-day workshop will probe this grey area and aim to bolster your diagnostic skills enabling you to give clear and confident advice.

Getting to Grips with Damp According to the Building Research Establishment, dampness is the most common cause of defects in all types of housing. The physical damage and health risks associated with moisure related problems are often at the heart of many legal disputes. Not only is this upsetting for those involved, it is also a waste of a landord's scarce resources.

This one-day course is designed to assist front-line staff working for social landlords balance limited budgets and with the demands of their tenants/customers. It will help your organisation develop an objective, professional and robust response to dampness problems in your stock.

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PHOTOGRAPHY FRAMING Understanding the importance of framing when taking photos ALY MCMORLAND CONTENT PRODUCER, SAVA

People often put photographs into frames as a way of displaying and drawing attention to their favorite pictures, however, there is another type of framing that you should know about in order to make sure you are getting the most out of your photos.

yourself “what is it i am trying to communicate? What needs to be in the frame”? For surveyors, pictures will usually be used to reinforce site notes and prove the property is in the condition stated. This means it is just as important to get the pictures right. It is imperative that your words and your photos complement one another showing the true condition of the property.

Framing the subject

Framing is the technique of drawing attention to the subject of your image by considering where it should sit within the scene. This in short allows the subject to be clearly and obviously displayed making sure nothing is missed.

So how do you frame photos properly? It is all about the subject. First work out what the subject is and then make sure the subject is fully within the frame. Remember, this is important because if you miss anything you will have to go back and re-capture the evidence. It is therefore good practice to take too many shots rather than too few.

The benefits of framing pictures include: 1. Capturing the entirety of the subject – when taking a

picture of something, that something should always be completely in the shot. Important information could be missed and the detail the photo communicates can become misconstrued if the subject is badly framed.

2. Photo context - sometimes it is necessary to add more

into a picture than what you are taking a picture of, for example you may take a picture of an archway but without seeing the archway in relation to the rest of the building it can be misleading.

3. Leading the eye towards the main focus – some

images can draw the viewer into the picture just by their shape, others can not only draw the eye into a picture but keep it there for longer.

Framing should be considered when you are setting up your shot. Before you take the picture you need to ask

Figure 1: A badly framed picture of a dog

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The Rule of Thirds

The Rule of Thirds is perhaps the most well-known ‘rule’ of photographic composition and is the basis for well balanced and interesting shots. The rule can be broken as ignoring it doesn’t make your images unbalanced or uninteresting, however, following it will make sure your photos are framed correctly.

of the subject has been purposely placed on one of the intersecting points, especially his eyes, which are a natural point of focus for a portrait. His tie and flower also take up a secondary point of interest.

The basic principle behind the rule of thirds is to imagine breaking an image down into thirds (both horizontally and vertically) so that you have 9 parts. As follows.

Figure 4: A portrait composition using the Rule of Thirds

In a similar way a good technique for landscape shots is to position horizons along one of the horizontal lines as demonstraited in figure 5 below.

Figure 2: Adding a grid, some cameras have this as an optional setting so that it does not need to be imagined

With this grid in mind the ‘Rule of Thirds’ now identifies four important parts of the image that you should consider placing points of interest in as you frame your image. If you place points of interest in the intersections or along the lines then your photo becomes more balanced and will enable the viewer to engage with it naturally.

Figure 5: A landscape composition using the Rule of Thirds

Using the Rule of Thirds comes naturally to some photographers but for others it may take a little time and practise. In learning how to use the Rule of Thirds the most important questions to be asking yourself are: • What are the points of interest in this shot?

• Where am I intentionally placing them?

When you are next out taking photos, try and remember the ideas in this article. First work out what the subject is and make sure it is within the frame. Secondly consider how the subject should be placed within the frame and whether there are any other elements that need to be in the photo to reinforce the subject itself.

Figure 3: A photo’s points of interest that the human eye naturally focusses on

People’s eyes naturally go to one of the intersection points rather than the center of the shot – using the Rule of Thirds works with this natural way of viewing an image rather than working against it. In figure 4 (above right), the head 20

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CREATING THE NEXT GENERATION OF SURVEYORS

The SAVA Diploma in Residential Surveying and Valuation offers: • SAVA Scheme membership to produce the Home Condition Survey upon qualification • A direct entry route to RICS membership at Associate level • A great opportunity to upskill current or new members of staff • Part time training to fit around work commitments • A comprehensive CPD programme for qualified surveyors • Industry leading trainers with Chartered Surveyor status The SAVA School of Surveying offers the next generation of surveyors a way forward.

SAVA has over a decade of experience in the surveying industry and has enrolled nearly 300 prospective surveyors into the school since its launch in June 2014. SAVA offers a complete and comprehensive learning experience including both face-to-face and online training.

This is the only initiative that I am aware of in a profession that is desperate for new blood. For this reason I am very supportive of the diploma.

Graham Ellis | Associate Director Residential at RICS

01908 442158

enquiry@nesltd.co.uk

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SAVA

School of Surveying www.surveyorqualifications.co.uk

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JOIN US AT OUR

OPEN DAY SURREY

SURREY OPEN DAY Book your place on our FREE open day in Surrey this December to ask your questions and find out more about the Diploma in Residential Surveying and Valuation.

Come along for the opportunity to: • • • •

Meet the SAVA team Hear from one of our graduates Ask all your burning questions Kick-start your new career!

To book, please visit our website or contact us using the details below.

info@sava.co.uk

DECEMBER

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12pm - 3pm

Venue:

Horsley Park Hotel Ockham Rd East Horsley, Leatherhead KT24 6DT

01908 442158

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OFFER AN ALTERNATIVE PRODUCT TO YOUR CLIENTS

Benefits to joining the SAVA Scheme include: • Comprehensive PI and PL insurance on a pay per use basis - no ‘run off’ cover necessary • Easy to understand report format with no valuation • User friendly report writing software with secure online storage and daily backups • On-demand technical support from a dedicated support team • Access to a full CPD programme, led by industry experts with reduced rates for members • Feedback from our monitoring and compliance checks to help reduce errors in all surveys The SAVA Scheme is for residential surveyors who want to offer the Home Condition Survey.

The Home Condition Survey is similar to an HBR as it is aimed at home buyers who want a comprehensive, independent survey of a property before they buy - but there is no valuation. The SAVA Scheme builds upon SAVA’s reputation as a champion of residential property surveying standards. Our quality assurance procedures are thorough and guarantee consumer confidence.

HCS

SAVA are excellent with their support of surveyors, they provide useful technical bulletins and publications with affordable CPD. Lee Brace | SAVA Surveyor

01908 442244

enquiry@nesltd.co.uk

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www.sava.org.uk