Recent reports indicate an increase in property down valuations, with some properties being assessed at 10% below their agreed sale prices. Mortgage experts suggest that this trend may be linked to uncertainties surrounding the upcoming budget, prompting surveyors to adopt a more cautious approach in their evaluations.
Jonathan Alvarez Herrera from Ayla Mortgages noted a noticeable rise in down valuations over recent months, estimating an average reduction of about 10%, particularly in the southeast and London, where property values are generally higher. Official Land Registry data indicates UK house price inflation at 2.6% for the year ending in September, although this figure masks significant regional variations; for instance, London saw a year-on-year price drop of 1.8%. Rightmove, a property listing site, reported that budget-related uncertainties are contributing to this trend.
Down valuations can occur when surveyors, acting on behalf of mortgage lenders, determine that a property’s market value falls short of the sale price. This situation can lead to a range of outcomes for buyers, including the need to renegotiate prices with sellers, switch lenders for a new valuation, or finance the difference through larger deposits. For example, Alvarez Herrera recounted an instance where a property was down valued from £3.1 million to £3 million, ultimately leading to a failed purchase as the buyer was unwilling to increase their deposit.
Patricia McGirr from Repossession Rescue described the implications of these down valuations as significant, noting that they can disrupt deals and add stress to all parties involved. In some cases, properties have seen valuations drop by as much as 17%. Vijay Rabadiya from The Mortgage Vine observed that down valuations are typically moderate, usually ranging from 2% to 5%, but could vary more significantly for unique or rural properties.
The Royal Institution of Chartered Surveyors (RICS) emphasizes that what is often termed a “down valuation” reflects the divergence between personal worth and market value, with the lender being the primary client in these evaluations.
Source: https://www.theguardian.com/money/2025/nov/22/mortgage-lenders-house-buying-surveyor-down-valuing