Selling a house is a challenge. But selling a house that has been underpinned is extra hard work and stress – with potential buyers wanting to avoid anything they consider risky.
But selling an underpinned house, whether that’s been a recent work or something that happened 20 years ago, isn’t impossible. In this guide, we’ll run through the challenges of selling and how to overcome them to get your home sold.
Underpinning solves issues with subsidence
Underpinning is a way to strengthen and stabilise a building’s foundations when they are no longer strong enough. Some properties have undergone or require unpinning to help solve issues with subsidence.
Subsidence happens when the ground beneath a building sinks or collapses. According to the British Geological Survey, it’s common in areas like London and the South East, as there’s a lot of clay in the soil in these parts (Bouch, 2005). Aptly named “London Clay”, this soil type is notoriously prone to shrinkage caused by moisture movement (Cooling & Skempton, 1942).
In other words, the soil expands when it is wet, and shrinks when dry, causing movement within the ground.
During the underpinning process, the soil is removed beneath the existing foundation to create space. Then, a new foundation (usually made from concrete) is installed to support the building’s weight. Done correctly, underpinning can last the entire lifespan of the house.
The key here is ‘done correctly’. Not knowing the condition and quality of the underpinning (and severity of the subsistence!) are big unknowns and risks for potential buyers, which can make it difficult to sell a house with underpinning.
The top 3 reasons buyers might not want a house that has been underpinned
To sell a house that has been underpinned, you need to understand what is putting your potential buyers off. By knowing why people might be wary of houses with underpinning, you can work towards solving these issues and putting your potential buyers at ease – making the entire selling process easier.
So, let’s reveal the top 3 reasons why buyers won’t want to buy a house that has been underpinned.
1. They’re worried about the stability of the property
Underpinning is a way to fix subsidence, which is a serious structural issue. As soon as those thoughts enter the buyer’s mind, they will be wary of anything that could mean that the property has, or will still, suffer from subsidence issues in the future.
Even if the underpinning fully addresses and solves the subsidence issue, that worry will remain in the back of their minds.
2. Increased insurance costs
In 2022, a subsidence claim was made every 15 minutes. UK’s insurers paid out an annual total of £219 million — the highest subsidence insurance bill in 16 years (Association of British Insurers, 2023).
Simply put, insurance companies often charge higher premiums for underpinned properties due to the increased risk involved. Depending on the specific circumstances, some insurance companies might not even offer policies or limit their coverage for underpinned houses.
Higher premiums and less insurance could put buyers off or cause the property to exceed their budget.
3. They need proof of effective underpinning
Not all underpinning interventions are equal. In this 2020 study, jet grouting and root piling were the most favourable methods in terms of price, failure rates, bearing capacities, etc. (Dachowski & Gałek, 2020).
Aside from the type of underpinning, the quality will also depend on the contractor. So, the buyers will want reassurance that the underpinning has effectively stabilised the property. High-quality underpinning will last the entire lifetime of the property, which is great news for the potential buyer.
But they need assurance that the underpinning is of the best quality. If not, the problem could come back, and the buyer will have another expensive underpinning job at hand!
How to sell a house with underpinning
Now you know the challenges, it’s time to overcome them with these tips. If you follow this guidance, selling a house that has been underpinned will be less stressful.
1. Be upfront and disclose everything
If you’re selling a house with underpinning, you have to disclose this information during the Seller’s Property Information Form (TA6). There’s no way to hide it, and it’s better for everyone if you’re upfront and honest about the underpinning from the start.
Aside from letting potential buyers know about the underpinning, you should reassure them about the quality of the work.
You can provide evidence such as Certificates of Structural Adequacy and Formal Completion (official documents issued according to the guidance of the Institute of Structural Engineers) if available. These documents certify the property’s structural soundness post-underpinning, preventing them from worrying about redoing the work in the future.
The root cause of the underpinning is another essential for your buyers. If the cause has been identified and addressed, i.e. if a root from a tree was causing subsidence and has been removed, it’s unlikely to happen again.
The more honest and cooperative you are about the information, the more faith your buyers will have in you and the property, which could put them at ease buying a potentially riskier property.
2. Work with professionals with the right experience
Choosing the right estate agent when selling your property is a very important decision to make. And because you know that underpinning is a big concern for potential buyers, it’s a great idea to search for agents who have experience selling in that area and know how to put buyers at ease.
3. Prepare all your documents upfront
Having all your documents ready before listing your property will help speed up the entire process and make it look like you’re more willing to cooperate and share information. That’s a win-win for making buyers feel more comfortable when selling properties with underpinning. This includes:
Certificate of Structural Adequacy
This document confirms that the underpinning work has been completed to an acceptable standard and that the property is structurally sound. (The big one to have!).
Formal Completion Certificate
This certificate indicates that the underpinning project has been finished and all necessary inspections and tests have been carried out.
This is especially crucial as post-intervention, houses will take time to resettle their weight on the piles. It’s a period when cracks can appear in areas of weakness and may even cause further renovations (Forsström, 2014).
Guarantees and Warranties
These documents outline the terms and conditions of the underpinning work, including any warranties or guarantees provided by the contractor.
If the underpinning work was carried out a long time ago (maybe even before you moved in), a structural survey could help prove that there is no longer an underlying problem.
If the underpinning was done 20 years ago, and the survey since that date has found no issues with subsidence, you’ve got a pretty good track record of proving that the work fixed the issue.
4. Be prepared to accept a lower value
In the past decade, subsidence has caused a considerable damage to homes and infrastructure, totalling to around £3 billion (British Geological Survey, 2021). With the costs associated, a property with subsidence that has been underpinned will typically be devalued by around 5%. However, this can rise to 20-25% for properties that still might have subsidence issues.
The higher the risk, the less people are willing to invest. So, if you’re selling a risky property – you might want to prepare yourself for offers under the market value and come up with a minimum amount you will be happy with.
5. Consider other methods of sale
Selling through estate agents might not be the best method for selling a house that has been underpinned. Because they are a higher risk for buyers, you might find that you’re on the market longer (which could cause further price reductions down the line!).
If time is an issue, you might want to consider using alternative methods like:
Selling your home through an auction
An auction can speed up your sale, giving you a fixed-date transaction. However, auctions can be unpredictable, and you could end up with a lower price than selling through estate agents.
Selling to cash buyers
Cash buyers can often complete the purchase quickly, as they don’t need a mortgage and won’t be within a chain. Again, cash buyers could make lower offers than expected. If you’re using a property-buying company, you could find that you sell for up to 20% lower than the expected value.
Before deciding on a selling method, carefully consider your priorities and get advice to determine your best approach.
Recent underpinning vs historical underpinning
The date your house was underpinned can make a big difference to its sale, as buyers are often more cautious about properties that have recently undergone underpinning compared to those where the work was completed several years ago.
This is because they want reassurance that the issue has been fully resolved and that there’s minimal risk of future ground movement. If the house had been underpinned 25 years ago and hadn’t shown any signs of subsidence, buyers would be more at ease than a property that was underpinned last year.
Selling a house that has been underpinned is challenging but not impossible
Selling a house with underpinning can be difficult, but the right preparation can work in your favour. For a smooth sale, it’s all about understanding what your buyers will be concerned about and working to solve any worries up front, reducing the risk.
Remember, transparency is key. Be open about the property’s history, the underpinning work, and any ongoing maintenance requirements—and have all the documents to prove it on hand!
Whether you choose a traditional estate agent sale, an auction, or a direct sale, the most important factor is to work with experienced professionals who understand the nuances of selling underpinned properties.
By seeking expert advice and taking a proactive approach, you can confidently navigate the process and achieve a successful outcome when selling a house that has been underpinned.
For more information about selling your home, find all the help and advice you need at PropertyRoad.
