House valuations plummet with fears of house price crash

Some 75% of homes in some parts of the country are having their valuations reduced by as much as 20% as lenders become increasingly fearful of a sharp fall in house prices. The mortgage broker Private Finance said: "We have started seeing highly significant down-valuations despite increasing asking prices. It is quite possibly the case that valuers are being told by lenders to be cautious." Mortgage broker Magni Finance added: "In the last couple of months, 75% of our remortgage clients have had down valuations of around 10%. Normally I'd expect less than half to be down-valued and those valuations to certainly be less than 10%.” Arnold & Baldwin chartered surveyors said: "It is quite a bullish market. Estate agents are inflating prices trying to outbid one another.”

The Sunday Times (18/10/2020)