Is it a bad time to buy a house? Leading think-tank predicts house prices will fall next year in 'turning point' for the property market

•    House values will finish this year up 7.8% Cebr says
•    But 2015 will see a dip of 0.8%
•    This would shave more than £2k off the average price  

By Lee Boyce for Thisismoney.co.uk

Given the rise in house prices over the last year or so, it is not surprising that lenders, brokers and applicants are experiencing some frustrations as valuers appear overly cautious in what some believe is a continuingly positive market.  But recent articles in the press and current market activity, suggest that we are definitely already experiencing that “turning point”.  

This creates difficulties for valuers who are reliant on previous sales information and current offers to determine and support their opinion of value.  Properties that completed in the summer are unlikely now to achieve the same level due to the changes in the availability of mortgages and the reduction in demand.  But applicant and broker expectations have not necessarily followed suit and this can lead to frustrating challenges when a value comes in lower than estimated.

The valuer has a duty of care to the lender to interpret the market correctly and report a valuation that is achievable given current market conditions.  This may take slightly longer in a slower market as additional research may be required to verify the latest position and ensure that the comparables used are suitable and appropriate.  Whilst every case can be challenged and will be considered, lenders and valuers would do well to remember the market crash of 2007/08 which resulted in a number of cases of over valuation, and ensure that the back up information really does support the value provided.

Metropolis Surveyors LLP have continued to thrive post 2007/08 and have invested heavily in a Compliance Team to compliment their Primary and Secondary Booking teams, ensuring a thorough checking and auditing service.  As an RICS member firm with a current ISO9001 Quality Management certification, all stakeholders can have confidence that Metropolis are aiming to be here for the long haul and are continually striving to improve the business supplying the best “fit for purpose” client service from their national network of over 100 valuers.

By

Kirsty Saunders, Compliance Director at Metropolis and Lee Boyce, Thisismoney.co.uk