Down valuations ‘rearing their head again’ says big property firm

Across Britain the average property subject to a down valuation is being revalued by -2.8% - around £7,290 on the current average house price.

down valuations

New analysis shows that the average property subject to a down valuation by a mortgage lender is being revalued by -2.8% – around £7,290 on an average house price, with Wales hit hardest where the average home is being down-valued by £8,149.

In the current market, the Open Property Group says down valuations are also coming in above the £8,000 threshold in the West Midlands (£8,143), the South West (£8,075), Scotland (£8,035) and the North West (£8,017).

Jason Harris-Cohen, Open Property Group
Jason Harris-Cohen, Open Property Group

Despite being home to the largest percentage down valuation at 4.8%, sellers in the North East are seeing the smallest monetary reduction in the value of their home during the surveying process, with a reduction of £7,498.

Jason Harris-Cohen, Chief Executive of Open Property Group, says: “Down valuations are an unfortunate part of the home selling process and they seem to be rearing their head once again, with lenders keen to safeguard themselves in what continues to be a tricky environment with respect to the cost of borrowing.

FRUSTRATING

“As a seller, it can be extremely frustrating when a lender doesn’t see eye to eye with you, especially after you’ve already gone through the lengthy process of securing a professional valuation from an agent and have accepted an offer from a buyer.”

But he adds: “Unfortunately, there’s not a great deal that can be done other than taking the hit, or repeating the process of finding another buyer, which can drag on for weeks on end, particularly in current market conditions.

“It’s a common story we see with many sellers opting to use our quick sale service and in doing so, we allow them to bypass the delays, stress time and effort associated with a down valuation, providing them with a concrete selling timeline so they can focus on their onward purchase.”


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