UK Homebuyers Face Uncertainty as Surveyors Downvalue Properties by Up to 10%
The housing market is bracing for another potential blow as surveyors are downvaluing properties by up to 10% or more, leaving buyers reeling and deals hanging in the balance. According to mortgage brokers, the recent uptick in such valuations has left many feeling "upside down" in terms of their purchasing power.
The cause of this sharp decrease in valuation is unclear, but experts point to uncertainty around the upcoming budget as a contributing factor. With some surveyors taking a cautious stance and adjusting prices accordingly, buyers are finding themselves at an impasse when trying to renegotiate with sellers.
Jonathan Alvarez Herrera, a mortgage broker at Ayla Mortgages, notes that downvaluations can have far-reaching consequences for those involved in the transaction. "A buyer might be able to renegotiate the price, but if that doesn't work, they may opt to switch to a different lender to get another valuation," he warns.
The impact is being felt across the UK, with certain regions, like London, bearing the brunt of the decrease. A recent example cited by Herrera involved a property downvalued from £3.1m to £3m – while not drastic in proportion, it was enough for the buyer to abandon the purchase.
Other experts are echoing similar sentiments, stating that downvaluations have become a postcode lottery, leaving sellers and developers feeling "chaos and stress." Patricia McGirr at Repossession Rescue says this uncertainty is turning deals and lives upside down, with some surveyors cutting values within months, particularly in London.
The trend has been observed across the country, with different brokers reporting varying degrees of markdowns – from 2% to 15% below recent comparable sale prices. The Royal Institution of Chartered Surveyors clarifies that what is being described as a "down valuation" is merely the difference between market value and worth to the individual buyer/seller.
As the situation continues to unfold, one thing is clear: UK homebuyers are facing an uncertain future, with their purchasing power under threat from surveyor downvaluations.
The housing market is bracing for another potential blow as surveyors are downvaluing properties by up to 10% or more, leaving buyers reeling and deals hanging in the balance. According to mortgage brokers, the recent uptick in such valuations has left many feeling "upside down" in terms of their purchasing power.
The cause of this sharp decrease in valuation is unclear, but experts point to uncertainty around the upcoming budget as a contributing factor. With some surveyors taking a cautious stance and adjusting prices accordingly, buyers are finding themselves at an impasse when trying to renegotiate with sellers.
Jonathan Alvarez Herrera, a mortgage broker at Ayla Mortgages, notes that downvaluations can have far-reaching consequences for those involved in the transaction. "A buyer might be able to renegotiate the price, but if that doesn't work, they may opt to switch to a different lender to get another valuation," he warns.
The impact is being felt across the UK, with certain regions, like London, bearing the brunt of the decrease. A recent example cited by Herrera involved a property downvalued from £3.1m to £3m – while not drastic in proportion, it was enough for the buyer to abandon the purchase.
Other experts are echoing similar sentiments, stating that downvaluations have become a postcode lottery, leaving sellers and developers feeling "chaos and stress." Patricia McGirr at Repossession Rescue says this uncertainty is turning deals and lives upside down, with some surveyors cutting values within months, particularly in London.
The trend has been observed across the country, with different brokers reporting varying degrees of markdowns – from 2% to 15% below recent comparable sale prices. The Royal Institution of Chartered Surveyors clarifies that what is being described as a "down valuation" is merely the difference between market value and worth to the individual buyer/seller.
As the situation continues to unfold, one thing is clear: UK homebuyers are facing an uncertain future, with their purchasing power under threat from surveyor downvaluations.
. seems to me like some sorta scam or somethin'. all these experts talkin' about uncertainty and chaos, but i'm thinkin' it's just the buyers who got nothin' to lose 
. if i'm buyin a house, i want it to be worth every penny, not have some surveyor come along and tell me it's only 90% of that price 
. london is gettin crazy prices already, now they're just losin value even more? no thanks 
. someone needs to do some real research here and figure out what's goin on 
. I mean, who wants to start a new life with a mortgage that's not as strong as they thought? It's just another hurdle in an already tough process 
. Surveyors just going all crazy and taking down property values by like 10% or more? It's so unfair to buyers who're already stressing about getting a mortgage 
. I mean, what's the point of even trying if the surveyor is just gonna lowball you anyway? 
. And now sellers and developers are feeling all the stress and chaos too 
And it's not just that one example, I've heard stories of people getting their prices slashed by as much as 15%! It's chaos, for real.
... but until then, let's just say I'll be over here, trying to stay chill 
.
...I mean, can you imagine having to deal with all this uncertainty when buying a home? It's like, one day the value of your dream house is £3.1m, and the next it's £3m – that's just mental 
. But seriously, has anyone else noticed how quickly things can change in the housing market? It's like one day you're on top of the world, and the next you're just trying to keep your head above water 
.
...but at least they have each other (and hopefully some decent mortgage brokers like Jonathan Alvarez Herrera) to support them through it all 
anyway, i feel bad for all those buyers who just got their hopes crushed 
and now have to deal with this uncertainty