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 ยฃ400,000 and ยฃ500,000 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, where 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 ยฃ5,000-ยฃ10,000. 24% of buyers revealed that their properties were down valued anywhere between ยฃ10,000-ยฃ20,000. However, some buyers reported that their potential properties had been down valued by up to ยฃ240,000.
First-time buyers (18-24) were yet again hit hardest with their mortgage valuations, with 33% discovering their dream property was deemed ยฃ20,000-ยฃ30,000 less than the agreed sale price. 30% of 25-34-year olds admitted to having their property devalued by ยฃ10,000-ยฃ20,000, whilst for buyers over 45, the majority of down valuations were between ยฃ5,000-ยฃ10,000.
Across the country, the most common devaluation seen was ยฃ5,000-ยฃ10,000, except in the North West and East Midlands who saw their homes down valued on average by ยฃ10,000-ยฃ20,000.
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.
Unfortunately, for those who received a down valuation they couldnโt resolve, only 2% confirmed they had since gone on to offer on another property.
Sam, a 30-year-old software engineer from Essex, told Bankate UK said, โIn August I attempted to buy a semi-detached property in Billericay Essex for ยฃ450,000. My offer was accepted by the seller but following a survey from my mortgage lender, the property was devalued by ยฃ50,000.
“As the seller was unwilling to reduce their asking price, I subsequently lost the mortgage offer and the property, as I was unable to increase my house deposit to cover the cost of the devaluation.โ
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