The RPSA said lenders are failing to make sure customers understand that a lender’s valuation is not a survey and have placed the responsibility with buyers’ lawyers through the lenders handbook.
It highlighted that just one in five home buyers get a survey or condition report on the property they are buying, yet 80% believe that they do get a survey.
The RPSA claimed lenders were doing little to change the situation, potentially because the industry makes £100m a year net income from valuation fees.
RPSA council member Alan Milstein said: “It is time for lenders to take responsibility for providing their clients with proper advice. They should make it explicit to their borrowers that the valuation they procure is for their purpose alone and says nothing about the condition of the property.
“They should advise homebuyers to get a survey or condition report and take a written signed instruction to this effect.
“If the only way that lenders will take responsibility is by way of dictate by the FSA then that is what must happen. That is why we, as a Council, have written to Hector Sants to take urgent action to investigate this issue.”
