Mortgage brokers say home shopping for in danger from surveyor ‘down valuing’

[ad_1] A rise in property down valuations, with some properties being marked down by 10% or extra by surveyors, is “turning offers and lives the other way up,” mortgage consultants declare.

Some imagine that uncertainty across the contents of the finances could also be fuelling an increase in surveyors taking a cautious stance and valuing properties at lower than the agreed worth.

Jonathan Alvarez Herrera, on the dealer Ayla Mortgages, had seen “a particular uptick” in down valuations within the mortgage market throughout current months. Requested in regards to the scale of the markdowns, he stated it relied on location, “however I might say about 10% on common”.

He added: “I've discovered the south-east and London notably affected, however that is merely right down to the truth that properties have a better worth.”

Official Land Registry knowledge issued on Wednesday confirmed UK home worth inflation operating at 2.6% within the 12 months to the top of September. Nevertheless, this determine disguised extensive regional variations: in London, costs fell by 1.8% over the 12 months. In the meantime, the property web site Rightmove stated this week that finances hypothesis “is fuelling uncertainty throughout a lot of the market”.

A down valuation usually happens when a surveyor performing on behalf of a mortgage lender carries out a valuation of a property and concludes that its market worth is much less – generally rather a lot much less – than the agreed sale worth. This will have large penalties for all concerned. A purchaser would possibly be capable to renegotiate the value with the vendor, but when that doesn't work, they could choose to change to a distinct mortgage lender to get one other valuation.

If that doesn't succeed, the client could must borrow extra to cowl the shortfall, stump up a bigger deposit, or abandon the acquisition.

Alvarez Herrera stated he had lately seen a property down valued from £3.1m to £3m. Though proportionally this was not a big markdown, the consumer was not keen to place down an additional £100,000 deposit and couldn't renegotiate the value, so the acquisition fell via.

Patricia McGirr, at Repossession Rescue, which focuses on folks in monetary problem, stated down valuations “are turning offers and lives the other way up. Even the identical surveyors are reducing values inside months, notably in London”.

She stated: “Whether or not it’s lender warning, native sentiment or pre-budget jitters, valuations have turn into a postcode lottery.” For sellers, builders and others “it’s inflicting chaos and stress”.

She lately had two instances down valued, one in London by 17%.

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Vijay Rabadiya, on the dealer The Mortgage Vine, stated most down valuations have been “average – often between 2% and 5% beneath the agreed buy worth”, and added: “New-build flats, distinctive or rural properties and houses in slower, southern markets have a tendency to draw essentially the most scrutiny [by surveyors].”

Different brokers have reported valuations coming in at something from 5% to fifteen% beneath current comparable sale costs.

The Royal Establishment of Chartered Surveyors (Rics) says on its web site that “in actuality there is no such thing as a such factor as a ‘down valuation’. What's being described is the distinction between value (to the person purchaser/vendor) and market worth”.

It provides: “You will need to recognise that the ‘consumer’ in most circumstances is, say, a financial institution or constructing society [the lender], not the particular person taking the mortgage.”

The headline of this text was amended on 22 November 2025. An earlier model referenced “mortgage lenders” when it ought to have been “mortgage brokers”.