Industry Statement on cladding – April update
In recent years, widespread building safety concerns, particularly in relation to cladding, have necessitated government and industry action, including the implementation of measures like the EWS1 form, which is intended to provide clarity and restore confidence in the mortgage market.
EWS1 forms are a valuation tool, very often required by lenders ahead of a flat sale, intended to ensure consistency in how properties are valued and certify that an external wall system on a residential building has been assessed by a qualified professional.
An Industry Statement in relation to EWS1 forms was made by mortgage lenders in July 2022 and was followed by more official guidance from the Royal Institution of Chartered Surveyors in January 2023. An update was published in April 2025 (The Updated Statement) to bring the guidance up to date generally and in response to recent events, such as the Tri Fire scandal, that have knocked consumer confidence. The Updated Statement includes reference to refinements to the use of EWS1 forms. The major lenders supporting the Updated Statement are: Barclays Bank, HSBC, Lloyds Banking Group, Nationwide Building Society, NatWest, Santander, Skipton Building Society, TSB, Virgin Money and Hodge Bank.
EWS1 forms signed by an invalid signatory
As many will already be aware, it came to light recently that Tri Fire, a Fire Safety Consultancy employed by many landlords and others to sign off on EWS1s, had failed to maintain professional competence in doing so. This triggered widespread concern regarding the reliability of work undertaken by their fire safety professionals: major lenders began withdrawing existing mortgage offers and were less willing to issue new ones where it transpired that Tri Fire had signed off the relevant EWS1.
The Updated Statement provides that lenders should not require wholesale reviews of EWS1 forms due to the status of the signatory. Instead, lenders are encouraged to consider accepting alternative evidence about the remediation status of a building such as:
- whether the building is included in a recognised remediation funding scheme;
- the Fire Risk Appraisal of the External Wall (FRAEW);
- a valid Leaseholder Deed of Certificate; and/or evidence supporting the reliability of the original EWS1 form.
EWS1 forms more than 5 years old
EWS1 forms do not have a formal expiry date, but were understood to be valid for around five years. This was based on the assumption that buildings with defective cladding would have been remediated within that timeframe.
The five-year period from the inception of the EWS1 form is almost at an end, which has caused concern among lenders and borrowers alike, particularly as so many affected buildings remain un-remediated. The Updated Statement confirms the lender signatories pledge not to require wholesale re-assessments of EWS1 forms at the five-year stage. This means the forms can still be used in the mortgage application process, subject to the individual lender’s appetite for risk.
Lenders also have the discretion to consider alternative forms of evidence, such as those listed above, in addition to the EWS1 form.
Although it remains subject to the individual lender’s discretion, it is hoped that the Updated Statement will encourage a more pragmatic approach to mortgage lending on high- and medium-rise residential and mixed-use buildings, promoting greater stability in the market for those assets.
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