Move iQ founder and Location Location Location presenter Phil Spencer spoke to Senior Manager of Mortgage Pricing Paul Archer from Nationwide Building Society. The property experts discussed how likely low mortgage rates will remain available and what the UK housing market could be looking like for the rest of 2021 and into early 2022. Phil said: “Over the last six weeks I’ve heard a lot more stories about houses being down valued.
“When I start hearing that, that always makes me a bit jittery about the marketplace and is it getting overheated.
“Surveys aren’t liking it, banks aren’t liking it, it worries me. Are you experiencing that?”
A down valuation is when a surveyor acting on behalf of a lender assesses a property and decides it’s worth less than the price agreed by the seller and the buyer.
The lender – the bank or building society – will not lend the full amount to the person looking to buy the home.
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“We’ve been through a period of very high demand where you know a lot of properties were going to best and final offers and were going for well above the asking price.
“Whether that has changed people’s expectations from the seller’s point of view is difficult to know.”
Mr Archer said house price inflation in August which was seen just recently in the Halifax house price index and the Nationwide index has been a factor at play.
The mortgage expert said house price growth in August came as a “bit of a surprise” given the tapering down of the stamp duty holiday threshold.
“I think there will be some surveyors who are thinking about that in the in the round,” he said.
“I think it is likely given the state of house price inflation at the moment that it may not continue.
“Even though we’re using the word ‘down valuation’ and there’s some quite scary connotations around that, the potential downside to that may be moderate and just a correction.”
Phil and Kirstie’s Love It or List It airs tonight at 8pm on Channel 4
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