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Housing Market Hit By Rise In Writs Against Surveyors

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The foundations of the housing market are being chipped away at by a flood of disputes between mortgage lenders and surveyors being fought out in the High Court.

Full article:

http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/8529474/Housing-market-hit-by-rise-in-writs-against-surveyors.html

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Would that be Countrywide, the estate agent chain?

Ah, I see it is :lol:.

And here's the rub, most surveyors are estate agents first and surveyors second. Says a lot for the impartiality of the RICS reports ;).

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Ah, I see it is :lol:.

And here's the rub, most surveyors are estate agents first and surveyors second. Says a lot for the impartiality of the RICS reports ;).

+1,000,000

A BIG two fingers from me to any RICS surveyors watching this.

Ever called an Estate Agents, and told them their property is massively overpriced? As it was sold eight years ago for X amount?!

Only to be put on to the cocky arrogant Valuer, who begins the conversation with the line.......

"Look! Im a royal Institute Chartered Surveyor! And I can tell you IT IS worth three hundred percent more than it was then, and house prices WILL NEVER DROP ........."

There was a time, prior to 2007, where for years, every single Estate Agent you talked to, swore blind, that house prices would never fall. Banks like the Bradford and Bingley, whose main product was the BTL mortgage even printed that on their literature..........Until they went bust to the tune of £50 Billion.

Edited by Dan1

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Would all cases of suing a surveyor have to go via the High Court in London? Surely not?

The article is very London-centric if not so. Surely people elsewhere in the UK suing a surveyor would do so via local/regional courts?

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The issue at the heart of these claims is the valuations surveyors put their names to in the lead up to the housing crash. While prices were rising no one contested the valuations. When prices started to come down lenders looked to see if they could pin the liability on surveyors.

For that reason a lot of the claims date back to valuations undertaken prior to 2008. With these types of claims normally subject to a six-year limitation period, the clock is counting down.

For this reason alone, many experts expect a lot more claims to emerge.

Gary Head, underwriting director at insurer Hiscox, said: "There are potentially a lot more claims against these companies to come through the pipeline as more properties are repossessed and financial institutions realise their losses."

Brilliant. :D

Realistic house price valuations coming soon to a street near you.

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Would all cases of suing a surveyor have to go via the High Court in London? Surely not?

The article is very London-centric if not so. Surely people elsewhere in the UK suing a surveyor would do so via local/regional courts?

Its might be because the cases are being brought by the leading lending instituitions rather than individuals. The lenders are getting twitchy over big falls in property prices

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Interesting that it's the banks bringing the cases. When will the proles wake up?

...are the banks own independent valuation surveyors now valuing property more realistically?....I say that because someone I was speaking to said they offered a below asking price offer of about 5% and the lenders surveyor said it was still overpriced, said it was worth £10k less than that. :o

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I'm no fan of surveyors, but I can't help but think the banks are shifting blame.

Surveyors/valuers can only say what they think is the value at the time of valuation, they can't be held responsible for the financial meltdown and the resulting house price drops.

Banks overstretched themselves by offering very high LTV products.

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I'm no fan of surveyors, but I can't help but think the banks are shifting blame.

Surveyors/valuers can only say what they think is the value at the time of valuation, they can't be held responsible for the financial meltdown and the resulting house price drops.

Banks overstretched themselves by offering very high LTV products.

Yes, I've always thought surveying is an absurd business.

"How much are you willing to pay for it? Erm, ok, guess it's worth that much, there's no big holes in the roof."

I once worked for a surveyor and his secretary wanted to buy a place. She kept asking "is it worth that much? will it go up in value?", and he had to keep saying "Who knows? If I knew, I wouldn't be surveying!"

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Excellent news. Another dynamic which should generate lower valuations and lower sale prices. Once this begins to play out we will be fully in 'never offer the asking price' territory too which should help to push prices down further.

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I'm no fan of surveyors, but I can't help but think the banks are shifting blame.

Surveyors/valuers can only say what they think is the value at the time of valuation, they can't be held responsible for the financial meltdown and the resulting house price drops.

Banks overstretched themselves by offering very high LTV products.

that would be fine, except they conform to a Chartered Institute, which means they should have professional standards and pride in those, that stand above the interests of financial gain, which allows banks to intrinsically trust their valuations as effective loan-collateral

If they were NOT chartered then it would imply that banks shouls have had greater risk margins, if they ARE chartered then they are morally and legally liable for professional misconduct in systematically mis-valuing properties

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those, that stand above the interests of financial gain, which allows banks to intrinsically trust their valuations as effective loan-collateral

Right, but I'd argue their valuations were correct at the time, in that the prices were the current market value. They can't be responsible for prices dropping.

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It’s a scandalous state of affairs, but in all probability the insurers, surveyors and banks are completely sanguine about the whole thing. After all, it’s just another merry jape in the world of business and ultimately the true cost will be passed down to ordinary mortals as a routine part of the boom-bust cycle.

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Right, but I'd argue their valuations were correct at the time, in that the prices were the current market value. They can't be responsible for prices dropping.

Depends what pricing metric they were using as it seems like it was nothing more than 'Add on 10% of the latest sale down the road'.

I'd like them to explain how they generate a valuation.

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...most surveyors are estate agents first and surveyors second. Says a lot for the impartiality of the RICS reports ;).

When I bought my houses in 1992 and 2002, the surveyor valued at about 5% less than the agreed price. If I hadn't bought at the agreed price someone else would have. Surveyors valuations only an opinion, what is more important are the aspects of the survey relating to condition. I have never understood why building societies/banks don't insist on full surveys, but simply recommend them. It's madness to lend money on this basis, the house could have fundamental flaws.

The only true valuation is what someone will pay based on condition.

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Depends what pricing metric they were using as it seems like it was nothing more than 'Add on 10% of the latest sale down the road'.

I'd like them to explain how they generate a valuation.

It's impossible to have an independent valuation. I may be prepared to pay £100K for a property, someone else £120K, and another person £150K. We all have our own criteria for the offer price. The best a valuer can do is to quote a price they believe the property will sell for in the current market, but it is a guess. Until someone pays the money. The best valuation would be the offer made by the person who didn't get the property, because in all likelihood that's what it would sell for on the open market.

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Its might be because the cases are being brought by the leading lending instituitions rather than individuals. The lenders are getting twitchy over big falls in property prices

Good point.

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Right, but I'd argue their valuations were correct at the time, in that the prices were the current market value. They can't be responsible for prices dropping.

if that were the case I would agree with you, and also i would think they cannot be sued succesfully in that case

I am not sure it IS the case tho' - I think there was systematic overvaluation of parts of the market even at the levels of the time - the whole 'below market value' scam was a case - the fact that people with the right connections could bag a cheaper flat in the same market as one next door that went to someone without said connections at the same time, shows that the latter surveyor was not acting in the interests of the lender or of the principle of market valuation, this happened a lot AFAIK

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I think this problem is due to Rightmove.

If you price up your property based on that website you'll more than likely over-value your equity.

The cash lot are free to pay whatever they like. But presumably they'd still get a valuation survey?

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if that were the case I would agree with you, and also i would think they cannot be sued succesfully in that case

I am not sure it IS the case tho' - I think there was systematic overvaluation of parts of the market even at the levels of the time - the whole 'below market value' scam was a case - the fact that people with the right connections could bag a cheaper flat in the same market as one next door that went to someone without said connections at the same time, shows that the latter surveyor was not acting in the interests of the lender or of the principle of market valuation, this happened a lot AFAIK

You mean like thse examples in this Guardian article from 2008?

http://www.guardian.co.uk/money/2008/apr/12/property.houseprices

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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