Readers of this blog will know that I have been a vociferous campaigner against the Home Report. One of the flaws, highlighted during the property downturn, was the fact that the Home Report only lasted for 3 months and lenders then required it to be refreshed. The issue was that if an offer had come in at lower than the Home Report value when the surveyors were doing the refresh if they found out this lower value they tended to decrease the value of the property.
As followers of the property market will know there has been an increase in prices over the last 6 months. We are now getting to the point where 50% or more of property transactions are coming in at higher than Home Report valuation. Does this mean when the surveyor does the refresh they will increase the value? This would seem to be logical although I am not sure how positive lenders would feel about this development. I am in communication with a number of surveyors and will let you know the outcome.
Partner – Head of Property