Property due diligence for lenders: EPC, flood risk and planning checks

Why check the property early

A valuation and legal report will cover the property in detail, but a few free public checks at enquiry stage can flag issues that affect value, letting or exit plans before costs are incurred.

EPC rating

• Look up the certificate on the EPC register by postcode and confirm it is for the right address.
• Note the band and expiry date. Certificates last 10 years.
• Bands F and G are below the usual minimum for letting in England and Wales, though exemptions can apply. This matters for buy-to-let and refurbishment exits.

Flood risk

• Check the flood zone: Zone 3 is high probability of river or sea flooding, Zone 2 medium, Zone 1 low.
• Check for live Environment Agency flood warnings nearby.
• Surface water flooding is assessed separately and is not shown by the flood zone.

Planning constraints

Conservation areas, listed buildings, Article 4 directions, tree preservation orders and green belt can all limit what a borrower can do with a site. An Article 4 direction on houses in multiple occupation, for example, can stop a planned HMO conversion without full planning permission.

Council data coverage varies, so confirm with the local planning authority or the solicitor's searches.

Example

A bridging case in York plans to convert a house into an HMO. The planning check shows the street sits in a conservation area with an Article 4 direction on HMOs, so the lender asks for the planning position before agreeing the exit strategy.

How Vettsafe helps

The Vettsafe Property search runs EPC (England and Wales), flood risk and planning constraints (England) from a postcode, separately or together, and saves the results to a dated report.