"An increase in property down valuations, with some homes being marked down by 10% or more by surveyors, is turning deals and lives upside down, mortgage experts claim. Some believe that uncertainty around the contents of the budget may be fuelling a rise in surveyors taking a cautious stance and valuing properties at less than the agreed price. Jonathan Alvarez Herrera, at the broker Ayla Mortgages, had seen a definite uptick in down valuations in the mortgage market during recent months."
"A down valuation typically occurs when a surveyor acting on behalf of a mortgage lender carries out a valuation of a property and concludes that its market value is less sometimes a lot less than the agreed sale price. This can have big consequences for all involved. A buyer might be able to renegotiate the price with the seller, but if that does not work, they may opt to switch to a different mortgage lender to get another valuation."
Property surveyors are increasingly issuing down valuations, with many homes marked down by around 10% or more. Surveyor caution may be driven by uncertainty over the budget, prompting valuations below agreed sale prices. Land Registry data shows UK house price inflation at 2.6% year‑on‑year to September, while London prices fell 1.8%. Regional variation leaves higher-value areas such as the south‑east and London particularly exposed. Down valuations force buyers to renegotiate, switch lenders for fresh valuations, increase borrowing, raise deposits, or abandon purchases. One recorded case saw a sale collapse after a £100,000 shortfall.
Read at www.theguardian.com
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