If damp has been found during a house purchase, the most important step is not to commit until you understand what has actually been found. A reference to damp in a survey or mortgage valuation is usually a prompt for further investigation, not a diagnosis. In England and Wales, an offer is not legally binding until contracts are exchanged, so there is normally time to establish the cause, obtain quotations, check what your lender requires and decide, with your conveyancer, whether to proceed, renegotiate or withdraw.
This guide takes each of those steps in turn, including what to do if your lender asks for a damp report for mortgage purposes. It is general guidance only and is not legal or financial advice.
What it means when a survey or valuer says “damp”
When you apply for a mortgage, the lender arranges a valuation to confirm that it is happy to lend against the property. As the government’s guide to buying a home explains, a valuation is not a survey and does not protect you if something goes wrong with the property. Where the valuer sees signs that may indicate damp or timber defects, such as staining, damaged plaster, decayed skirtings or evidence of previous treatment, the valuer may recommend further investigation.
A buyer’s survey, such as an RICS Level 2 survey or a more detailed RICS Level 3 building survey, gives the main parts of the property a condition rating. Where the cause of damp is unclear, the report may recommend further investigation. For condition rating 3 items, RICS states that written quotations for repairs should be obtained before you make a legal commitment to purchase.
From a surveying perspective, the questions that matter are where the moisture is coming from, whether it is active or historic, and how far it extends.
Common findings and what they may mean
The most common findings are set out below, and our guide to the types of damp explains each in more detail.
High moisture meter readings
Most hand-held moisture meters measure electrical conductivity and are calibrated for timber, so they give only relative readings on masonry and plaster. Salts left by past damp, carbon in some plasters and foil-backed wallpaper can all produce high readings on a wall that is otherwise dry. A high reading is a reason to investigate, not proof of damp.
Condensation
Black mould on window reveals, in the corners of rooms or behind furniture usually points to condensation. It may reflect how the home has been heated and ventilated, but missing extract fans, blocked vents and cold spots should also be checked.
Penetrating damp
Damp patches linked to a leaking gutter, defective pointing or render, a roof defect or poorly sealed windows indicate penetrating damp. The remedy is usually a repair to the building, not damp-proofing treatment.
“Rising damp” claims
Damp at the base of ground-floor walls is frequently described as rising damp. Genuine rising damp does occur, particularly in older buildings without an effective damp-proof course, but it is diagnosed more often than it is present. Bridging of the damp-proof course, leaks and condensation can produce similar symptoms. Before accepting a quotation for injection, read do I need a new damp proof course?. Solid-walled homes also need a different approach, as our guide to damp in older houses explains. If the property has been treated before, ask your conveyancer to obtain the guarantee.
Get an independent diagnosis
Many buyers ask a damp-proofing company to inspect, and the report often includes a quotation for treatment. Many contractors provide careful and competent reports, but where the same company diagnoses the problem and quotes for the remedy, there is an inherent commercial interest in the outcome. A joint position statement on moisture investigation, published in 2022 and co-authored by RICS and Historic England, recognises this, and expects contractors who provide quotations to report objectively and to suggest only proportionate works.
A pre-purchase damp survey from an RICS Chartered Surveyor who does not sell treatments can help you to:
- Understand the actual cause of the damp, not only the proposed treatment
- Judge whether a contractor’s recommendations are necessary and proportionate
- Negotiate on price with evidence, where significant works are needed
- Avoid unnecessary work, such as an injected damp proof course where a simpler remedy would resolve the problem
- Plan repairs after completion
Obtaining quotations
RICS consumer guidance recommends obtaining quotations from at least two experienced contractors before making a legal commitment to buy. Ask each contractor to price the same scope of work, based on the diagnosis, so that the figures can be compared, and check whether making good, such as replastering and redecoration, is included.
Renegotiating or asking the seller to act
Government guidance on making an offer explains that an offer made “subject to contract” can be renegotiated if a survey finds a problem, and that you may wish to share the relevant part of the survey with the seller’s legal team. It also cautions that renegotiation should only take place when justified, as late attempts may cause delays and could risk the sale falling through.
Your options usually include:
- Renegotiating the price, supported by the diagnosis and quotations
- Asking the seller to carry out the work before completion, with details of the contractor, the scope and any guarantee
- Proceeding at the agreed price and budgeting for repairs after completion
- Withdrawing, if the cost or uncertainty is more than you are prepared to accept
A seller is not obliged to agree, and any arrangement should be recorded by your conveyancer. Our guide on what to do if your survey finds problems covers these options in more detail.
If your lender asks for a damp report for mortgage purposes
Where the valuer has noted signs of damp, the lender may:
- Ask for a specialist damp and timber report before confirming the mortgage offer
- Make the offer subject to conditions, such as specified works being carried out
- Hold back part of the loan as a retention until the works have been completed
From a surveying perspective, the lender’s caution is understandable, as damp left unresolved may contribute to timber decay and further deterioration. Each lender sets its own requirements, and the wording of the condition determines which kind of report will satisfy it.
“Specialist report” or “damp and timber report”
This usually means a report from a person qualified to inspect and diagnose damp and timber defects, confirming the cause and extent of any problem and the work required. Some conditions ask for a report only, while others ask for a report with a quotation or costing for the works.
“Retention”
A retention is where the lender holds back part of the mortgage advance until specified works have been completed. The buyer then needs to cover the shortfall from their own funds at completion, and the retained sum is released once the lender is satisfied that the work has been done, which may involve a further inspection. The amount, the works required and the conditions for release vary between lenders.
Named memberships or qualifications
Some lenders may specify who must prepare the report. For example, a condition may require a report from a member of a named trade body, or from a surveyor holding a particular damp and timber qualification. Other lenders may accept a report from an RICS Chartered Surveyor or a “suitably qualified” specialist. Because the wording differs, it should never be assumed.
Where the lender specifically requires a report from a member of a named body or the holder of a named qualification, an independent survey may not satisfy that condition on its own. In that situation, it can still be used alongside the required report, to check that the recommendations are proportionate before you commit to them. Our accreditations are with RICS, CABE, the RPSA, the CIOB and the Expert Witness Institute, so if the condition names a different membership or qualification, check whether the lender will also accept a report from an RICS Chartered Surveyor.
Check the wording with your broker or conveyancer
Before booking any inspection, it is advisable to:
- Ask your broker or conveyancer for the exact wording of the condition in the mortgage offer or valuation report
- Check whether the lender requires a report only, or a report with a quotation
- Check whether a particular membership or qualification is named
- Ask whether the lender will accept a report from an RICS Chartered Surveyor
- Establish whether the report is needed before the offer is issued, or whether a retention will apply
Conveyancers acting for a lender follow that lender’s instructions, including the lender-specific requirements set out in the UK Finance Mortgage Lenders’ Handbook. Your conveyancer is therefore well placed to confirm what the lender requires.
Timing before exchange
Damp is usually raised part-way through the transaction, after the survey or valuation. Government guidance advises exchanging only when you are satisfied with the searches, the survey and the contract, and your lender has confirmed your mortgage. If you withdraw after exchange, you may lose your deposit and have to compensate the seller. The process differs elsewhere in the UK, so take advice from your solicitor.
Access, inspection, further testing, quotations and the lender’s review all take time, so it is sensible to act promptly, particularly in a chain. A practical sequence is:
- Obtain the exact wording of any lender condition through your broker.
- Arrange access through the seller’s agent, with permission for any intrusive testing.
- Instruct an independent diagnosis and any specialist report the lender requires.
- Obtain quotations, then decide with your conveyancer whether to proceed, renegotiate or withdraw.
- If a retention applies, make sure you have the funds to cover the shortfall at completion.
How an RICS Chartered Surveyor can help
An RICS Chartered Surveyor can provide an independent assessment of damp flagged by a survey or valuer, establish the cause and set out proportionate recommendations. Our independent damp survey is designed for buyers and homeowners in this position, and forms part of our wider damp and mould survey service. The written report includes photographs, readings, a risk rating and prioritised recommendations, and it can be shared with your lender, broker, conveyancer or seller. Our damp reports have been accepted by lenders that require a damp report, although requirements vary between lenders, so the exact wording of the condition should always be checked first. The report also covers timber decay and wood-boring insect activity, so it also works as a combined damp and timber report.
Frequently asked questions
Should I pull out of a purchase because damp has been found?
Not necessarily. Some causes of damp, such as a defective gutter or condensation, may be resolved without major work. The decision should depend on the cause, the likely cost and the lender’s position, and it should be made before exchange.
Can I use a damp-proofing company’s report for my mortgage?
Yes, if it meets the lender’s condition. If the report recommends significant treatment, you may wish to obtain an independent opinion before committing to the work or agreeing a price reduction based on it.
Will a retention stop me buying the property?
Not necessarily. A retention means that part of the loan is released later, once the specified works are complete. You will, however, need to fund the shortfall at completion and arrange for the works to be carried out within the lender’s requirements.
Get independent advice before you exchange
If damp has been found on a property you are buying, or your lender has asked for a damp report, speak to one of our RICS Chartered Surveyors. For a free quotation, call 0151 374 0905 or email office@lansdownassociates.co.uk (Monday to Friday, 09:00 to 17:00). We usually respond within one working day.
