Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

46 per cent of UK properties down valued since March

UK properties

According to new research from Bankrate UK, homes valued between £400,000 and £500,000 have been devalued the most

Around 46% of buyers have had their prospective property down valued since March 2020, according to new research from Bankrate UK.

Of those properties that were down valued, 50% of these buyers were aged 18-34, in comparison to 37% of buyers aged 45 and over.

The results also revealed that homes valued between £400,000 and £500,000 have fallen victim to the most devaluations.

Buyers looking to purchase properties in Wales had the highest percentage of down valuations at 63%. In close second was the capital, as London homes saw 59% of their properties deemed less valuable by lenders. Next, buyers in Yorkshire and the North West had 58% and 56% of their properties down valued.

Conversely, homes in the South West have held onto their value the most, with 74% of properties holding their value through to completion. Second were homes in the East Midlands where 70% were not down valued, followed by Scotland at 56%.

Cottages were the property type that have received the highest proportion of down valuations at 66%, followed by 48% of semi-detached properties.

Almost half (44%) of homes include in Bankrate’s investigation were down valued between £5,000-£10,000. 24% of buyers revealed that their properties were down valued anywhere between £10,000-£20,000. However, some buyers reported that their potential properties had been down valued by up to £240,000.

First-time buyers (18-24) were yet again hit hardest with their mortgage valuations, with 33% discovering their dream property was deemed £20,000-£30,000 less than the agreed sale price. 30% of 25-34-year olds admitted to having their property devalued by £10,000-£20,000, whilst for buyers over 45, the majority of down valuations were between £5,000-£10,000.

Across the country, the most common devaluation seen was £5,000-£10,000, except in the North West and East Midlands who saw their homes down valued on average by £10,000-£20,000.

Although buyers can ask the seller to reduce their house price to cover the cost of down valuation, only 33% of those surveyed did so. Of those who did ask the seller to reduce the price, 72% had their offer accepted but 13% still had to increase their deposit to cover the cost.

For those who received a down valuation they couldn’t resolve, only 2% confirmed they had since gone on to offer on another property.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.