How does Japanese knotweed impact the value of your home?

A new, free online valuation tool by Environet UK helps buyers and sellers assess the Japanese knotweed impact on a property’s value.

Buyers and sellers of homes affected by Japanese knotweed can now carry out a quick online check to find out how much the property’s value may be diminished by the invasive plant, thanks to a new free online tool launched by Environet UK.

The rapid spread of Japanese knotweed across the country and growing awareness of the risks means homeowners are increasingly forced to confront the issue when buying and selling property. Environet estimates that Japanese knotweed now affects 4 – 5% of homes in the UK. Approximately 850,000 to 900,000 UK households are suffering an average reduction in value of around 10%, knocking almost £20 billion (£19.8 billion) off property values.

An urgent need for better understanding among homeowners of how Japanese knotweed can affect the value of a property has prompted Environet to develop the algorithm, with support from Expert Surveyors Ltd, a leading provider of RICS expert property valuation reports in the UK.

Named JK-VIM, it enables buyers and sellers to assess how much the value of a home is reduced if it is affected by knotweed and offers revised valuations if the infestation is treated by herbicide or excavation and has a ten-year insurance backed guarantee for the works.

Mortgage lending practices for properties with Japanese knotweed have come under scrutiny in recent months following the Science & Technology Select Committee’s inquiry into the impact of Japanese knotweed on the built environment earlier this year, which concluded that “the current approach to Japanese knotweed is overly cautious”.

JK-VIM allows a quick assessment to be made on the likely impact on value, which on average is around 10%, taking into account the size of the infestation and its distance to the nearest boundary. For those negotiating the sale or purchase of a property with Japanese knotweed, it provides a sensible framework for price negotiation considering the unique facts of the case. Sellers are better able to determine if it’s financially worthwhile to have the knotweed professionally treated before selling the property, whilst buyers are in a stronger position to negotiate a lower price that is both accurate and fair.

Nic Seal, founder and MD of Environet, said:

“Lending practices for properties with Japanese knotweed are in urgent need of review, considering all that’s usually required is a professional treatment plan to deal with the problem and a sensible readjustment of the price. In reality, properties with knotweed are worth on average around 10% less than an unaffected property, which reflects the cost of treatment and the so-called ‘knotweed stigma’.

“Now, for the first time, sellers will be able to see for themselves whether it’s worth their while financially to have an infestation professionally treated before marketing a property, by seeing exactly how much its value is diminished. Buyers, meanwhile, can get a realistic idea of how much they should be offering.”

Homebuyers who are concerned about the likelihood of a property they are buying being affected by Japanese knotweed can visit Exposed, Environet’s online knotweed heatmap, which allows users to enter their postcode to find out how many infestations there are within a 4km radius.

To use JK-VIM please visit https://environetuk.com/Japanese-knotweed-house-price-calculator.

Kindly shared by Environet UK