Non-standard construction: cheap for a reason that matters
A concrete house is not a worse house. It is a house that half the mortgage market will not lend on, and that is the problem you are buying.
Most UK homes are built from brick and block, with a tiled or slate roof. Anything else is non-standard, and the category covers a wide range: pre-cast reinforced concrete, steel-framed houses, timber-framed, thatched, cob, and various systems built in the post-war decades.
The structural quality of these buildings varies enormously. Some are excellent and outlast their brick neighbours. The problem is not the building — it is the market, because lenders are cautious about anything they cannot easily value and resell, and insurers are cautious about anything unusual.
Why it affects price
A property that only a handful of lenders will mortgage has a much smaller buyer pool. Cash buyers and specialist lenders dominate, and both price in the difficulty. The result is a discount that can be 20–40% below an equivalent brick property.
That discount is the opportunity and the trap. If you are buying with cash and can satisfy yourself about the construction, you are being paid well for taking on a problem that may not be a problem at all. If you need a mortgage, or you intend to sell to someone who needs a mortgage, the difficulty is yours.
- Pre-cast reinforced concrete (PRC) homes may have been repaired under a designation scheme, which affects lender appetite
- Steel-framed houses vary hugely; some are acceptable to mainstream lenders and some are not
- Timber-framed construction is generally acceptable if correctly built and maintained
- Thatch, cob and other traditional materials have specialist lender and insurer requirements
- Some systems are uninsurable at standard rates, which affects both value and saleability
Establishing what you are dealing with
The starting point is a structural survey by a surveyor who has experience of the specific construction type. A general surveyor may not be able to advise on a rare system, and an inaccurate report is worse than none.
Then check the lender position directly. Ask two or three lenders whether they would lend on the specific construction, and ask a broker who deals with non-standard property. The answer determines the size of your future buyer pool, which determines the price.
When the discount is worth it
Non-standard construction can be a genuinely good buy when the construction is sound, the price reflects the difficulty, and you are buying to hold rather than to flip. The discount is stable — it does not disappear, but it does not widen either, and it applies on the way out as it did on the way in.
It is a poor buy when the construction is defective, when the surveyor cannot confirm it is sound, or when the discount is small relative to the difficulty. In those cases you are buying a property you may struggle to sell at any price.
Common questions
- Can I get a mortgage on a non-standard construction property?
- Sometimes. It depends on the specific construction type. Timber-framed and some steel-framed homes are acceptable to many lenders; pre-cast reinforced concrete and unusual systems may need a specialist lender. Check with a broker who handles non-standard construction before committing, because the answer determines both your purchase and your future exit.
- Is a non-standard construction house a bad investment?
- Not necessarily. The discount is real and tends to be stable, so if you buy at a discount you will typically sell at a discount of a similar proportion. The risk is that the discount widens — for example if lenders tighten their criteria — or that the construction turns out to have a defect that is expensive or impossible to remedy.