As valuers of residential property all over the United Kingdom, our experience is that Listed buildings cost significantly more to rebuild following a loss than unlisted buildings.
Naturally, the question on everyone’s lips is …“We know they cost more to rebuild; but how much more? If there was a simple answer to this, for any building, we would all be out of a job, and the claims process in the event of a loss would be a breeze. Every building is unique, and they should all be valued as such.
Here are a few factors of many, which contribute to the additional costs of reinstating the Listed block;
Professional Fees
The professional experts who might be involved in reinstating a Listed building (architects, surveyors, mechanical and electrical engineers, planning consultants, interior designers etc.) will have specific experience and relevant qualifications for working on Listed buildings. Subsequently, they may command higher fees than, for example, those working on a modern new build.
Time delays – of various types!
Planning approvals for the reinstatement of Listed buildings will need to be referred to more governing bodies than a modern development might be and we frequently see a longer timescales for remediation and planning before work can begin on reinstatement. A longer programme of works incurs higher costs than a shorter one would.
Construction on Listed buildings also tends to take longer than on a more conventional building. For example, even something as simple as an internal wall in modern buildings are often formed with plasterboard sheets nailed to timber studwork, whereas, in a Listed building, timber laths and lime plaster might be used which takes much longer to construct and will involve more expensive, specialist trades.
Very sought-after teams and skilled suppliers, as those mentioned above, may be busy at the time of a loss and having to wait for them, may also increase costs.
Time delays cost money as there are still various professionals working in the background and prices tend to increase with inflation.
A modern masonry-built block of flats might cost of the order of £2,000/m² to rebuild. We frequently visit Listed properties which cost at least three times this amount and if the property is complex in construction with fine internal features, then the cost might be in excess of £10,000/m² to reinstate.
Conservation Approval
All work to a seriously damaged Listed building will need approval from the Local Authority who may also engage with Historic England, CADW or Historic Environment Scotland.
Although some modern materials may be accepted, the cost of rebuilding will increase greatly if they insist on retaining the original form of construction. This requirement is not unusual, especially for those buildings with Listings higher than Grade II.
A BCH Reinstatement Cost Assessment will take into account the specific materials used on a site. If constructed from ashlar stone, for example, this could increase the total cost of the building by over 50% compared to rebuilding in good quality brickwork. A significant impact for what may have previously be presumed, a small material difference.
Complexity
A compliant Reinstatement Cost Assessment values a property for a total loss situation on a like for like basis. An attended site visit is the best way to a certain level of finish and the best way to accurately appraise more complex finishes.
Internal finishes for a Listed building often have higher levels of detailed finish. Allowances for items such as door architraves, bespoke ceiling finishes such as cornice and ceiling roses, fitted storage to alcoves and fireplaces, can all contribute to a significant portion of a rebuild valuation.
Many converted blocks also have high sums added for external features such as garden walls, paths, driveways and many structures within the curtilage all of which should be included in the valuation, upon which the premium will be calculated.
It is not simply the Listed status which increases the sum insured. It is the type of materials and labour required to reinstate an historic building, the additional fees that will be incurred, complexity of design and finish, specific location factors and timing; all of which increase the valuation for insurance purposes.
