Japanese Knotweed and Mortgages

Is Japanese knotweed the menace it’s thought to be? We look at how it affects your mortgage prospects and what the new guidance means for buyers

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Home Property Types Japanese Knotweed And Mortgages
Pete Mugleston

Author: Pete Mugleston

Mortgage Advisor, MD

Nathan Porter

Reviewer: Nathan Porter

Independent Mortgage Advisor

Updated: March 18, 2024

How we reviewed this article:

Our experts continuously monitor changes in the financial space and work closely with qualified mortgage advisors for factual verification.

August 10, 2022

The sight of Japanese knotweed has filled generations of homeowners with terror, but how much will it really impact your chances of buying or selling a home?

In this article, we’ll explore what Japanese knotweed is, how it can impact your chances of getting a mortgage, and how the right advice can help you overcome issues caused by this notorious weed.

Can you get a mortgage on a property with Japanese knotweed?

Despite what you may have heard, it’s absolutely possible to get a mortgage if the property you’re looking to buy has Japanese knotweed within or near the property boundaries. In fact, the Royal Institute of Chartered Surveyors (RICS) have recently updated their guidance related to this invasive plant, believing that the level of caution exercised within the mortgage industry has been excessive.

That said, many lenders are cautious when it comes to offering finance for properties with the weed present, so it’s important to seek professional advice if the home you’re buying has it.

What exactly is it?

Hailing from Japan, Fallopia Japonica (or Japanese knotweed) is an aggressive weed that once grew inside volcanoes, hence its hardy properties. It grows incredibly quickly in the spring and summer months, sometimes increasing in size by multiple centimetres per day.

The plant has incredibly robust roots that can reach as far as 20 metres below the surface and have the ability to destroy obstacles in their path.

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Mortgage lender concerns

Of course, the destructive nature of Japanese knotweed is what causes mortgage lenders to exercise caution in lending. Its presence within the boundaries of a property can reduce the property value, even where no damage has occurred, as there is still potential for future damage. This is especially the case for buyers looking to renovate, as it can make the construction process much more difficult and costly.

There are even lenders that are put off by properties with Japanese knotweed in the local area, which can be problematic for homes built nearby train lines, as the plant was originally used to prevent railway embankment landslides.

The good news is that multiple scientific studies have found that damage to the structural stability of residential properties is very rare, especially when compared to other invasive plant species. RICS has since published new Japanese Knotweed guidance, which came into effect in March 2022.

As a result, lenders are becoming increasingly more comfortable lending on properties with Japanese knotweed in the vicinity, however, this type of application is still considered on a case-by-case basis, depending on the severity of any damage, or the potential for future destruction.

Additional criteria you’ll need to meet

Until recently, mortgage lenders exclusively used the previous RICS risk matrix to determine the level of risk involved with lending, and this relied heavily on the ‘7 metre rule’ which meant that Japanese knotweed found within 7 metres of the property boundary was not acceptable.

However, since RICS new guidance announced that damage is unlikely to ‘robust buildings with substantial foundations,’ this rule has been scrapped. The onus is now on surveyors to use their own personal judgement when assessing the risks of Japanese knotweed within the property boundaries.

There is also a requirement for surveyors to report their findings to a mortgage lender if they find Japanese knotweed within 3 metres of the property boundaries, but they are not obliged to report any in the local vicinity that is further away than that unless it is particularly widespread or there are no signs of control in place.

Although this new line of thinking may take some time to trickle through to every lender, criteria are likely to ease in the near future. In the meantime, some lenders are still basing their lending on the previous risk matrix, which defined the presence of Japanese knotweed into 4 categories.

This means that you may still need to fulfil the following criteria if Japanese knotweed is present at the property you wish to purchase:

  • Put down a larger deposit
  • Sign up for a treatment plan guaranteed by PCA or INNSA that may need to be prepaid for a number of years
  • Order the removal of knotweed by a member of PCA (Property Care Association) or INNSA (Invasive Non-Native Specialists Association)

Of course, you’ll also need to meet general mortgage lending criteria, such as affordability, creditworthiness, age limits, and property types, all of which will vary from one lender to the next.

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What to do if a lender has declined you because of Japanese knotweed

Whilst generally criteria are easing, it’s important to realise that each lender sets criteria based on their own interpretation of risk, and surprisingly, there are still lenders that flatly refuse to accept an application for Japanese knotweed homes. Finding a lender with the right appetite for this type of purchase is, therefore, still essential.

The brokers we work with are experts in this area. They’ll know which lenders are more relaxed about lending in these circumstances, and which ones are likely to require you to have control measures, such as removal of the knotweed, in place prior to approving your application. They can also recommend PCA surveyors and invasive weed management companies, if necessary helping you to more easily meet any relevant lending criteria.

Which lenders will consider your application?

The majority of lenders will, at least, consider lending on properties that have Japanese knotweed within or around the property boundaries, although many still balance the lending risk with higher interest rates, especially if they consider Japanese knotweed to pose a risk to the property itself and/or the property value.

Many of the larger lenders, such as HSBC and Virgin are still basing mortgage approval on the 4 categories of knotweed severity from the previous RICS risk matrix, whereas others, such as Barclays and TSB, as well as many building societies, seem to have updated their policies to acknowledge the updated guidance. This is reflected by these lenders using more general criteria in relation to following current RICS guidance, and basing their decision on the surveyors’ advice, rather than knotweed being any particular distance from the property.

If the property you’re buying has Japanese Knotweed, approaching a lender directly is not recommended. Using a broker who specialises in complex properties is a better alternative, as they will have deep working relationships with the best mortgage providers to approach.

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Can you get rid of Japanese knotweed?

It’s possible, but very difficult to get rid of. It’s strongly recommended that you don’t attempt to do so yourself, as this can actually exacerbate the problem. The government has released guidance on preventing the spread of Japanese knotweed, which may be useful if you’re planning to buy a property where this could be an issue.

In line with the new RICS guidance, it’s likely that controlling the spread of this problem species, rather than total eradication, will be enough to satisfy the majority of lenders. This should minimise the costs involved with meeting lending criteria for most applicants, although there is still the chance that a knotweed removal guarantee will be needed by some lenders.

If you’re planning to build an extension or lay a patio, complete removal of the weed is likely to be necessary. This can be costly, as you will need a specialist Japanese knotweed management contractor with PCA or INNSA membership to carry this out for you.

Get matched with a mortgage broker with experience of Japanese Knotweed applications

Japanese knotweed is no longer the obstacle to getting a mortgage that it once was, but there are still lenders who choose not to look at this type of application. Speaking to a mortgage broker when you discover Japanese knotweed is the best way to avoid scouring the entire market to find a lender willing to approve a mortgage in your specific circumstances.

Our free broker matching service will put you in touch with a broker with plenty of expertise in this field. They stay abreast of any changes to relevant invasive species regulations and know which lenders have begun to ease their criteria for this type of purchase. Simply call us on 0808 189 2301 or make an enquiry to be paired with a Japanese knotweed expert today.

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FAQs

As the roots can spread a significant distance, it’s possible that the presence of Japanese knotweed on neighbouring land could pose a problem to your application, however, this should be less impactive now that the ‘7-metre rule’ has been removed.

If you’re concerned, it may be worth speaking to your potential future neighbours about a treatment plan, however, it’s important to understand that they’re under no legal obligation to remove Japanese knotweed from their property. A surveyor will be able to advise you whether this is likely to affect the value or integrity of your property.

Moreover, there could also be some issues when it comes to selling your property if Japanese knotweed is present. If the issue isn’t dealt with and worsened, this might affect the value of the home, plus any future buyers might find it more difficult to get a mortgage.

RICS covers all four home nations within the U.K, so the latest guidance on Japanese Knotweed should also apply in Scotland, as it does across England, Wales and Northern Ireland.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for Online Mortgage Advisor of course!

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Pete Mugleston

Mortgage Advisor, MD

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