The National Association of Estate Agents (NAEA) has claimed that lenders are undervaluing residential properties, causing sales and remortgages to fall through
It says discrepancies between agreed sale prices and valuations carried out by surveyors are having a detrimental effect on the number of property transactions
NAEA members believe that mortgage lenders could be undervaluing properties by as much as 10% with a large majority (69%) of agents experiencing problems with lenders’ valuations after a sale is already agreed
65% of those who took part in the poll of UK agents said that property sales had fallen through as a result of down valuations. Further to this, 86% had seen further negotiations take place as a direct result
Peter Bolton King, chief executive of the NAEA, said: “Our members have heard in several cases that lenders gave specific instructions to their valuers as to how they should approach these valuations