The housing market could recover at a faster rate if surveyors valued properties higher, according to a new report.
Commercial law firm McGrigors has released research which claims surveyors are undervaluing properties by up to 20 per cent – therefore stifling the market.
The valuation is often much lower than the agreed sale price which means the buyers are forced to give a bigger deposit.
The research has been revealed as latest house price indices show the property market seems to be stabilising.
Figures from Halifax showed property prices rose 2.6 per cent in May, while Nationwide figures also revealed a monthly increase.
But McGrigors said the market could be experiencing a much faster recovery if surveyors were more generous with their valuations.
Partner Suzanne Gill said: "Surveyors are making some very defensive valuations which are significantly below prices which have been agreed between seller and buyer. This is making it much more difficult for sales to complete and holding back house price growth."
See Also: Property News (6680)
Date Published: 11 June 2009
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