Valuation fears threatening property transactions

Property transactions are being cast into doubt as surveyors claim homes are being overvalued in an uncertain market, the Telegraph reports. Surveyors are valuing homes at significantly less than the agreed sales price, known as a down valuation, which means mortgage lenders asking for a much larger deposit. This then forces buyers to come up with additional funds or risk their purchases falling apart. Britain is in the midst of a property market boom but there is widespread concern that prices will fall when the tax break ends in April. Experts said this has led to hundreds of cases where surveyors have valued properties at less than the buyer and seller have agreed. Down-valuations are most prevalent in areas where the highest price rises are occurring.

The Daily Telegraph (15/10/2020)