Around 46% of UK homes have been down valued since March 2020, according to new research from Bankrate UK. The mortgage comparison service surveyed buyers and prospective buyers across the UK to analyse how lender uncertainty is affecting the market.
The study found that properties that were valued between £400,000 and £500,000 have been devalued the most, with younger purchasers hit hardest. Half of buyers aged 18-34 received a down valuation, in comparison to 37% of buyers aged 45 and over.
Buyers looking to purchase properties in Wales had the highest percentage of down valuations at 63%, followed by London, where 59% of properties were deemed less valuable by lenders. In contrast, the vast majority of properties in the South West held onto their value the most, with 74% of properties holding their value through to completion.
According to the research, 44% of homes included in Bankrate UK’s study were down valued by £5-10,000, while a quarter of buyers said their properties were down valued by £10-20,000.
Cottages were the property type that has received the highest proportion of down valuations at 66%, followed by 48% of semi-detached properties.