Few documents have had as much influence on the UK mortgage and flat markets over the past five years as the EWS1 form. Introduced following Grenfell and the increased scrutiny of external wall systems, it became an important part of the valuation process for thousands of properties.
However, recent changes to RICS guidance on when an EWS1 should be requested, alongside revisions to PAS 9980, suggest its role may now be starting to change. Together, they point towards a more proportionate approach to external wall risk and could reduce the number of properties requiring an EWS1.
Why the EWS1 was needed
Before the EWS1, there was no standard way of confirming that a building’s external wall system had been assessed by a suitably competent professional or communicating the outcome.
Valuers and lenders could instead receive lengthy technical reports from fire engineers and other specialists which, while containing the necessary detail, were not always easy for those outside the profession to interpret.
The EWS1 provided a standard outcome, making it easier to establish whether an appropriate assessment had taken place and whether remediation was considered necessary. Although the process has attracted criticism because of the delays associated with obtaining a form, the EWS1 did not create the underlying building safety issues. It provided a framework that gave valuers and lenders greater clarity and allowed transactions to continue where uncertainty might otherwise have prevented them from progressing.
A more proportionate approach
In truth, the EWS1 was never expected to become a permanent feature of the mortgage process. But the scale of the issues uncovered, combined with questions around remediation, responsibility and funding, meant it remained necessary for far longer than originally anticipated.
The revised RICS guidance reflects what has been learned during that period and takes a more refined approach to deciding when further assessment is required, particularly for buildings of six storeys or fewer.
For example, previous guidance could lead to an EWS1 being requested when certain higher-risk cladding products, including ACM, MCM or HPL materials, were identified. The new approach recognises that the presence of a particular material does not necessarily provide the full risk profile, with greater consideration given to the extent and significance of its use.
This could remove the need for an EWS1 on a significant number of lower-rise properties. Allowing more mortgage applications to progress without waiting for specialist information, while retaining further investigation where there is a clear reason for concern.
The growing role of FRAEWs
The changes also place greater focus on Fire Risk Appraisals of External Walls (FRAEWs), undertaken in accordance with PAS 9980, which consider the overall fire risk presented by a building’s external wall construction rather than individual materials in isolation.
One challenge has been the variation in FRAEW reports, with some providing clear findings and recommendations while others are highly technical and difficult for non-specialists to interpret.
Revisions to PAS 9980 seek to improve consistency, proportionality and communication, while the RICS guidance provides greater clarity around what valuers are expected to review in these assessments. If this results in clearer and more consistent reporting, FRAEWs should become increasingly useful.
Is the role of EWS1 changing?
Greater confidence in FRAEWs could reduce reliance on the EWS1, but much will depend on whether assessments consistently provide clear conclusions that can support valuation and lending decisions.
What does appear to be changing is the approach to external wall risk, with greater consideration of the exterior as a whole rather than relying too heavily purely on the presence of individual materials.
That does not mean the EWS1 is about to disappear. However, if the revised approach can provide lenders and valuers with the information they need while reducing unnecessary assessments, we may finally be starting to see a mortgage market in which the EWS1 plays a less central role.
