Wednesday, May 25, 2011

Sweet…

House Price Bust: surveyors feel the heat

"Four years after the property bubble burst, the spotlight is being turned on the surveyors. It was greedy, reckless bankers... there were the borrowers, too... Mortgage brokers have been held to account, in droves...But let’s not underestimate the role of the surveyor, who was there at every stage, providing a helpful tick of the biro to ease the flow of bad money. Now… they’re being sued. And by the hands that once fed them."

Posted by mark wadsworth @ 01:58 PM (4750 views)
Please complete the required fields.



9 thoughts on “Sweet…

  • Looks to me like lenders are finally losing their bottle.

    This is just an indirect way of saying “I’m done” and I’m taking you to court if you brake my nose, so ease off.

    I think Surveyors will become a popular feature on this site as the months pass and prices head south. (no pun intended)

    Reply
    Please complete the required fields.



  • sibley's b'stard child says:

    Also covered at Estate Agent Today:

    The sound of a Ponzi scheme collapsing

    “Heard of one testerday that 4 years ago it was valued at £400k and last week at £125k. I think the office junior went round on that one last week.”

    Reply
    Please complete the required fields.



  • What come to mind is “You reap what you sow”. Time is a great healer.
    MW where do you think this is going from past experience ? Will the surveyors become really cautious ?

    Reply
    Please complete the required fields.



  • mark wadsworth says:

    House, your guess is as good as mine. Apparently there was lots of suing and counter suing going on in the early nineties, and everybody was a bit careful for five years, but then caution was thrown to the winds again.

    Reply
    Please complete the required fields.



  • honest valuer says:

    In order to get the new build market going again in the early nineties the CML, RICS and Housebuilders agreed that valuers could value up new build allowing for a new build premium. I was always under the impression that this was a temporary measure and would be taken off (ie. allow valuers to value on a secondhand basis ) once the market picked up. But this never happened and the housebuilders used all sorts of tactics to get valuers to value up – the obvious ones were lieing about sales of comparable units on the same development and omitting to mention incentives like 5% cashbacks etc. Any valuer who tried to down value was severely chastised by everyone from the builder, to the buyer, the valuers employer, the lender and even the RICS if a complaint was made. It was an impossible task! I came across a Colleys valuer (Halifax) who said that they were called to a meeting after a new hot shot director had been appointed to the Halifax board who basically said to all their in house valuers to value everything up because the Halifaz wanted to increase market share! But of course all of this is forgotten now.

    Fortunately things are now very different now and commmon sense prevails but I personally blame the new build premium being allowed to prevail for stoking the new build market during the last decade. I am now being approached on a weekly basis by solicitors either acting for lenders or surveyors to undertake retrospective valuations which I presume are for negligence claims. So surveyors are really felling the heat now. However if I was a solicitoir defending a surveyor I would use the contribitory negligence defence due to the high perecentage of liar loans and outright broker fraud.

    Reply
    Please complete the required fields.



  • The most interesting thing in the story for me was the ruling that might mean banks might have to treat small buy-to-let owners as retail customers, this would be a hugh disincentive to lend on buy-to-let.
    Fingers crossed.

    Reply
    Please complete the required fields.



  • I worked in EA in the early 90’s and surveyors were sued just like today.This resulted in surveyors downvaluing property and requiring 3 comparables to justify any valuation.

    What is very interesting though is the amount where the surveyors refused to value unless essential work was carried out or estimates obtained…for example a crack required structural engineers report,damp required 3 estaimates with guarantees and any alterations required consents and checks before a valuation was given.

    Some say this extra surveying work helped pay for the claims!

    p.s there were times when if the sale dragged on,they would require a surveyor re-iteration

    Reply
    Please complete the required fields.



  • @honest valuer

    Thanks for that perspective. I have a vague recollection that in some cases, valuers who didn’t give the ‘right’ answers tended to lose business to more flexible rivals.

    Reply
    Please complete the required fields.



  • 6. quiet guy

    ..Or they were sued.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>