When buying or selling a property in the UK, the essential conveyancing process involves a series of mandatory checks from qualified surveyors. While these checks are invariably out of your hands, it pays off to understand the condition rating system they use, as it could inform your next steps (if you’re buying a property) or highlight vital areas that need addressing (if you’re selling).
The Royal Institution of Chartered Surveyors (RICS) has developed a standardised traffic light system that makes survey reports accessible to all home buyers. Understanding the essential parts of these reports and their significance can help you in your property buying or selling journey, as they can do anything from streamline the process to grind it to a complete standstill.
What is the home survey traffic light system?
All RICS home surveys utilise a straightforward colour-coded rating system that instantly communicates the condition of different property elements.
Certain RICS chartered surveyors will adopt their own variations and indicators for defects, but the general colours indicate N/I (not inspected) to 3 (red - defects that are serious and need urgent investigation), providing a clear visual guide that helps buyers understand the property's condition at a glance.
The four main condition ratings are:
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Condition rating 1 (Green): No repair is currently needed. The property must be maintained in the normal way.
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Condition rating 2 (Amber): Defects that need repairing or replacing but are not considered to be either serious or urgent. The property must be maintained in the normal way.
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Condition rating 3 (Red): Defects that are serious and/or need to be repaired or investigated urgently.
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N/I - Not Inspected (Grey): Not inspected.
Conditioning Rating 1 (CR1) - Green
A green rating indicates that the surveyed element is in good or excellent condition with no substantial or urgent defects observed. It suggests that the element or component being assessed requires no immediate repairs and should be maintained in the usual manner.
That said, even if you find an abundance of green-rated areas, it can help to identify other maintenance tips or construction methods that can inform future property care and home improvements.
As far as house buyers are concerned, green ratings provide reassurance that the property is in good condition as a whole, and that it’s well-maintained. For sellers, green ratings confirm the value and condition of their property, and can support their asking price.
Conditioning Rating 2 (CR2) - Amber
Amber ratings indicate that the element or condition being assessed shows defects, signs of wear and tear or issues that aren’t immediately vital but would require attention in the near future.
Common examples include (but are not limited to):
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Loose roof tiles
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Worn exterior paintwork requiring renewal
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Minor plumbing leaks
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Windows needing resealing
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Garden boundary issues
It indicates that certain elements, while not being in premium condition, are functional and not an immediate cause for concern. Amber ratings usually indicate defects that should eventually be addressed by repairs or replacements.
That’s not to suggest that amber ratings should be entirely ignored. It’s important to pay close attention to the report’s information on potential future problems that may arise should these issues be neglected or overlooked. A RICS home condition report with amber ratings aplenty should help inform your decision-making process, whether involving committing to the purchase, renegotiating, or considering alternative options. Consider seeking specialist quotes for amber-rated conditions or elements as well the surveyors’ advice on maintenance and future obstacles related to the addressed element(s).
Conditioning Rating 3 (CR3) - Red
Red ratings signal serious defects, significant issues and major maintenance requirements of unique elements or components that demand urgent attention.
These might include:
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Structural movement or subsidence
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Major roof defects allowing water ingress
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Electrical installations requiring complete rewiring
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Heating system failures
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Serious damp or timber decay issues
Red ratings usually indicate issues that must be immediately repaired, replaced or investigated further. The problems raised must never be ignored, and should always be taken seriously before completing a purchase. It’s recommended to seek further investigation into any problems highlighted by red ratings.
The extent of the information divulged in RICS survey reports will often depend on whether you opt for the most extensive (Level 3 report) or the most rudimentary (Level 1 report) option. The more in-depth your report, the more information you will unveil about the conditions or elements of the property you are looking to buy or sell.
How ratings can be helpful in property decisions
The rating system provides powerful negotiation tools for both buyers and sellers.
If you’re in the process of buying a home, any highlighted amber or red ratings can be used to request price negotiations based on expected repair costs, or request that sellers complete works before contracts are exchanged. Sellers, conversely, can benefit from understanding these ratings to demonstrate proper care to potential buyers and even achieve better sales prices (if their report contains plenty of green ratings.)
While the traffic light system provides a basic level of categorisation, the insights put forth by professional RICS surveyors are often more helpful. They assess the most pressing challenges of properties first, with comprehensive advice for remediation, in line with new modern survey standards in an attempt to maintain transparency. This ensures buyers can receive reliable, standardised information regardless of the surveyor they choose to inspect their potential future home.
Property age, while it can be a factor in structural quality, doesn’t always correlate with bad condition ratings. Well-maintained Victorian homes may achieve more green than amber or red, while neglected modern homes may show the opposite. The rating system is designed to help you look deeper than surface aesthetics and isolate a property’s true condition.
Buy or sell quality homes in Devon today
Whether you're buying or selling a home in Devon or the surrounding areas, don’t seek the easy way out, and instead get the best possible advice and support. At Sawdye & Harris, our experienced team guides clients through every aspect of property transactions, from initial valuations through to completion. Contact Sawdye & Harris today to discuss how our expertise can help you navigate property surveys, negotiations, and achieve your property goals.