Mortgages for Concrete and Prefabricated Houses

The following construction systems have been designated defective under the Housing Defects Act 1984 and are declined by most standard mortgage lenders in their unreconstructed state: Airey houses, Cornish Unit, Wates, Reema Hollow Panel, Schindler, Stent, Orlit, and Unity. These properties are not inherently unsafe to live in, but their mortgage status reflects the long-term structural concerns associated with these systems.

Properties of designated defective construction that have been repaired using an approved repair system and hold a current PRC Certificate (issued by the PRC Homes Agency or an equivalent body) have significantly improved mortgage options. Many specialist lenders - including some building societies and specialist residential lenders - will consider PRC certificated properties, typically at LTVs up to 75-80%. The certificate is transferable with the property on sale.

PRC properties without certificates - either because they were never repaired, or because repairs were carried out without using an approved system - have a much more restricted lender panel. Some specialist lenders will consider these properties at lower LTVs (typically 60-70%) with additional structural survey requirements. The lending pool is small but genuine options exist for the right property in good condition.

BISF houses - recognisable by their steel-framed first storey with render finish - are not designated defective under the 1984 Act but are non-standard construction. They are accepted by a limited panel of specialist lenders at up to 75% LTV. A full structural survey confirming the steel frame's condition is typically required.

All concrete and steel-framed properties require a RICS Level 3 Building Survey as a minimum. For designated defective PRC types, an additional specialist structural engineer's report confirming the frame's condition and any repair system's integrity may be required by the lender. For PRC certificated properties, the certificate itself provides significant assurance but does not remove the need for a structural survey.

PRC properties typically achieve lower market values than equivalent brick-built properties in the same area, reflecting the restricted mortgage market and the restricted buyer pool. This should be factored into purchase price expectations and the long-term investment case for these properties.