Banks and building societies are refusing to lend on about one in five properties because of down-valuations by their surveyors.
But the issue raises fundamental questions: Is it over-valuing by agents or under-valuing by surveyors that is wrecking so many deals? Or is it a mixture of both?
According to Spicerhaart boss Paul Smith, in around 19% of cases, lenders’ surveyors are valuing properties at below the agreed sale price.
This is leading to chains breaking and sales collapsing, says Smith, worsening the stagnation of today’s property market.
“Should we therefore be getting properties pre-valued by surveyors?” asks Smith somewhat provocatively in his column which appears on EYE today.
