Rebuild assessments misunderstood amid cladding crackdown

Tougher building safety rules mean higher rebuild costs for high-rise buildings. But are clients and brokers confusing rebuild valuations with something they’re not?

Since the introduction of the Building Safety Act 2022, there’s been a lot of change in how the UK views property risk. New rules around cladding, fire safety systems and escape routes mean that any rebuild of a Higher-Risk Building (HRB) must now meet modern safety standards. These standards, introduced post-Grenfell, are often far more stringent and expensive than those in place when the building was first constructed.

Amid all of this, there is a common misconception: the belief that a Rebuild Cost Assessment (RCA) includes an assessment of cladding safety. It doesn’t. And this assumption, if left uncorrected, risks leaving policyholders underprotected.

A rebuild valuation is not a cladding safety survey

An RCA estimates how much it would cost to completely rebuild a property in compliance with current building regulations. It includes structural design, fire protection upgrades, and contingency for modern materials. But it stops short of commenting on whether existing cladding systems are safe or code-compliant.

“An RCA isn’t about fire risk, it’s about financial risk,” explains Sharon Masters, Surveyor & Technical Lead at RebuildCostASSESSMENT.com. “Our job is to ensure the building is insured for enough to rebuild it lawfully, using today’s rules and standards. But we don’t carry out fire safety surveys or identify whether cladding materials are combustible. That’s a separate discipline, handled by specialist engineers or fire specialists.”

Despite this, rebuild valuations are sometimes misunderstood as a catch-all report – one that can assess both cost and safety. That confusion can be costly. Clients who believe their cladding has been reviewed may not pursue an EWS1 form or fire engineer’s report, missing a critical step in demonstrating compliance.

Why clarity matters now more than ever

The post-Grenfell regulations are complex and still evolving. From second staircases in taller buildings to new expectations around non-combustible materials, the costs of rebuilding today are higher than ever. That makes accurate valuations essential.

But so too is clarity about what those valuations cover.

“We’re transparent about our remit,” says Sharon. “Our surveyors are construction cost specialists, not cladding inspectors. We don’t overstep that line, and we encourage brokers to help clients engage the right professionals for each issue.”

For clients worried about cladding, an RCA won’t provide the answers they need, but it will tell them how much a compliant rebuild might cost if remedial works are needed.

Explore the full report

To help brokers and property professionals navigate these challenges, We have published a detailed report:

Cladding and high-risk buildings: what you need to know about rebuild costs

It covers:

• The new rules affecting HRBs

• Common misconceptions about rebuild valuations

• How to direct clients to the right expert for cladding and fire safety

  
  

Take a look at the report to understand the full implications and avoid costly misunderstandings.