x
By using this website, you agree to our use of cookies to enhance your experience.
Graham Awards

TODAY'S OTHER NEWS

Shocking number of down valuations, claims agency

An agency claims that across the UK there have been very nearly 400,000 property transactions down valued in the last year alone.

Benham and Reeves analysed transactions over the last 12 months following a devaluation report from mortgage consultancy Bankrate.

The research shows that across the UK, an estimated 390,285 homes have been down valued by surveyors on behalf of mortgage lenders, who believed the price agreed by buyer and seller was too high.

Advertisement

The South East has seen the problem most acutely - of 137,107 homes sold in the last 12 months, 60,327 are thought to have been down valued.

The North West has also been hit badly with 54,043 of the 96,506 homes sold in the last year being down valued.

And in London 47,769 of the 80,965 homes sold in the last year would have been subject to a down valuation.

Benham and Reeves says the average property across the UK will take a hit of between £5,000 and £10,000 in a down valuation.

Agency director Marc von Grundherr says down valuations are now “a prevalent occurrence” across the UK.

“We’re seeing more lenders request a greater degree of caution by valuers in a market where prices are climbing at a rate of knots.-

“As a seller, you can look for a new buyer purchasing through a different lender and hope they agree on the value of your home. Or you can hold tight until values increase at the risk of losing your buyer or simply accept the lower value placed on your home.

“As a buyer, you can also negotiate with the seller or lower your offer, or you can get the property valued by a different surveyor and lender. Otherwise, you face getting a loan to cover the shortfall or bumping up your deposit to cover the cost.”

  • Samantha Sullivan

    Everything valued by E-Surv in Swansea gets down valued even if there are comparables available yet they cannot be challenged?. Buyers having to change lender.
    HSBC offer 5% deposit deals but expect the sellers to drop a further 5% and a 3rd party working for HSBC said that's why only 30% of deals go through.
    When will the truth get out?

  • icon

    To be expected, cautious Valuation Surveyors not wanting to increase their already substantial indemnity insurance premiums.

icon

Please login to comment

HBB Solutions HBB Solutions HBB Solutions
sign up