What is a foundation label?

A foundation label is a (somewhat disputed) rating that indicates the degree to which a house’s foundation poses a risk. It uses a five-point scale from A to E, where A means no risk and E means a confirmed problem.

How it works

Unlike an energy label, a foundation label is not based on an individual inspection of the house. The label is calculated from environmental data: the soil structure, the groundwater level, the building’s year of construction and satellite measurements of land subsidence. Based on this information, a model estimates how likely it is that the foundation has or will develop problems. Because the label relies on statistics and environmental factors rather than the actual condition of the piles, errors are possible. A house with label E does not necessarily have a poor foundation, and vice versa.

Application

The foundation label increasingly appears in valuation and property reports, giving buyers and lenders an initial estimate of the risk. It is explicitly an indication and not a guarantee: certainty about the real condition always requires a foundation survey, in which a pile head is exposed. The label can, however, help decide whether such a survey is worthwhile.

Related terms

• Foundation category
• Foundation quality
• Land subsidence
• Foundation survey

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