Japanese Knot Weed update part 2

In the previous blog, we explained the history that Japanese Knotweed had with RICS valuation surveyors and how reporting to lenders affected the outcome of sales.

In this part, we will outline the new RICS Guidance Note 2022 and how it aims to assist surveyors in using their professional judgement rather than a defined framework to report to clients, particularly mortgage lenders, with an appropriate management plan.

The new guidance is based on four 'Management Categories', A – D, established on the actual or potential impacts of Japanese Knotweed on buildings, hard surfaces, and now the property's amenity space, NOT solely on the 7m distance from buildings in which the old information paper was based.

For example, a surveyor can now judge that a small stand on a larger plot will not affect any amenity space. In comparison, the same-sized stand could have an adverse effect on a smaller plot requiring a different Management Category. Under the old Information Paper, regardless of the plot size or density of the stand, if it were within 7m, it would have resulted in mortgage retention and costly remedial work delaying the sale of the property.

The 7m distance was based on the potential distance of the rhizome growth. The new guidance now looks at the area of visible growth, except when evaluating the possible encroachment from stands outside the subject property. Now only stands within 3m of the subject are considered to have a potential impact.

For non-lending reports, a survey will always advise the client to seek further advice irrespective of the Management Category. It will highlight the potential effects on the property and its value if left unattended.

For mortgage lending surveyors, they will still need to assess the Japanese Knotweed's impact on the property's saleability and value. In theory, however, these new categories should see fewer mortgage retentions by the lender.

For further information, please contact Woodward Chartered Surveyors on 01923 920 950