Video summary

Survey says the property has subsidence, what to do?

Main summary

Key takeaways

Business

Business-relevant summary (subsidence in property purchases)

Core message / decision flow

  • A structural surveyor can’t confirm true subsidence—typically they can only suspect it and recommend further investigation.
  • The correct next step is a structural engineer, who can determine whether there’s ongoing movement and what’s causing it.
  • Most of the time, what’s flagged as “subsidence risk” turns out to be nothing serious (e.g., settling, new-build shrinkage, historic movement that has stopped, or normal up/down soil movement).

Roles & “who decides what”

Structural surveyor

  • Qualified to: suspect subsidence / flag concerns.
  • Not qualified to: make a definitive judgment that subsidence is present.

Structural engineer

  • Qualified to: assess, test, and diagnose cause and severity.

Insurance company

  • Often drives the required evidence for claims and the remediation plan.
  • Their assessment/report is central if subsidence is real.

Playbook: what to do if subsidence is suspected

  1. Don’t panic / don’t immediately walk away

    • Re-read the survey report carefully: it should usually read as “suspected / needs investigation,” not “confirmed.”

  2. Find a trusted local structural engineer

    • Recommended method: ask the seller’s house insurance provider for a structural engineer they trust.
    • Alternative: estate agent contacts or structural engineer societies.
    • Emphasized requirement: local knowledge matters due to different regional causes (mines, soil types, drainage history).

  3. Agree funding arrangement with the vendor

    • Structural engineer costs vary widely based on scope:
      • A limited check: roughly £92–£300
      • Whole-building investigation: roughly £300–£1,000
    • Common approach suggested:
      • Buyer covers the engineer cost in exchange for buying the report if subsidence is confirmed.
    • Variations like 50/50 possible, depending on risk and negotiation.

  4. Diagnose the “type” of movement

    • Cracks can have many causes; examples given:
      • New-build settling: minor internal plaster cracking; generally not a subsidence threat.
      • Up-and-down subsidence (clay shrink/swell): seasonal movement; can be “houseboat-like” and stable if minor.
      • Old subsidence that stopped: floors/doors may have been affected historically; engineer may confirm “no ongoing movement.”
      • Actual ongoing subsidence: requires root-cause and remediation planning.

  5. Decide the remediation strategy

    • Key distinction: fix the cause vs fix the symptom.
    • Examples:
      • Cause: tree roots drawing down moisture → soil movement (especially described for tree-lined streets where trees may be council-managed).
      • Fix options:
        • Underpinning (digging beneath and installing deeper foundations) to stabilize.
        • Remove/reduce the cause (e.g., reduce tree water extraction by pruning/removing problematic trees).

  6. Handle insurance strategically

    • If remediation is needed:
      • In many cases the property has an insurance policy covering underpinning costs.
    • If engineer says movement is uncertain (“not sure”):
      • Use monitoring: install glass rods in brickwork and re-check after ~6 months to 1 year.
    • Critical instruction: keep the same insurance company as the seller when buying a property with potential subsidence.
      • Switching insurers can trigger disputes over when subsidence started and who is responsible, causing delays and escalating costs.

Concrete examples / case-style scenarios

Regional causes vary

  • Cornwall: old mines collapse.
  • Norfolk: softer marshy soils/drainage history; different mechanics than Cornwall.

Tree root cause scenario

  • A tree growing near/over the property can draw water from soil, shifting the ground and causing subsidence.
  • If trees are on/near public land, the relevant local authority department may be responsible for pruning and budgets.
    • Suggested action: inquire about their timetable (e.g., annual or every two years pruning cadence).

Historic movement that stopped

  • Example: older flats allegedly at angles; doors don’t stay put unless aligned—suggests old settling subsided long ago.
  • Structural engineers may take very limited time onsite and conclude the movement isn’t ongoing.

Negotiation levers (business execution)

  • If structural work is required, price renegotiation can be used to offset:
    • Inconvenience/noise/construction disruption (underpinning phase).
  • Possible bargaining approach (example framing):
    • Buyer could seek a reduction for “being the one dealing with the builders,” potentially framed around something like ~£10,000 “for less inconvenience” (example figure).

Risk of “survey stigma”

  • Concern: properties may go under offer repeatedly because subsidence is repeatedly flagged or misinterpreted.
  • Suggested tactic: interpret the survey correctly and progress to engineering review rather than immediately losing the deal.

Key metrics / thresholds mentioned

  • Structural engineer cost estimates
    • £92–£300 (limited scope)
    • £300–£1,000 (more extensive investigation, e.g., whole property/building)
  • Monitoring timeline
    • 6 months to 1 year (glass rod crack monitoring)
  • Insurance strategy
    • Keep same insurer to avoid disputes over the start date of subsidence.

(No explicit revenue/CAC/LTV/churn metrics apply; this is operational/transaction execution guidance.)

Frameworks / playbooks explicitly implied

  • Decision gating / qualification
    • “Surveyor suspects” → “Engineer diagnoses” → “Insurance validates cost/claim path”
  • Root-cause vs symptom fix
    • Underpinning (symptom stabilization) vs removing cause (e.g., tree pruning)
  • Monitoring protocol
    • Glass rods + time-based verification (6–12 months)

Presenter / source

  • Tim Hill — internet entrepreneur, property investor, author of How to Really Buy a Property.

Original video