It has been claimed that residential properties sales and remortgages are falling through due to discrepancies between agreed sale prices and valuations between surveyors and estate agents, according to research conducted by the National Association of Estate Agents (NAEA).

The National Association of Estate Agents (NAEA) members believe properties are being undervalued by as much as 10% . A large majority (69%) of agents had experienced problems with lenders’ valuations after a sale is already agreed.

A a direct result, 86% had seen further negotiations take place as a direct result.

Chief Executive of the NAEA, Peter Bolton King said: “Our members have heard in several cases that lenders gave specific instructions to their valuers as to how they should approach these valuations.

“We all know that valuation is not an exact science and you can understand under current market conditions people erring on the side of caution. But is it fair that they value a property based on what might happen in the future rather than what is happening today?"

“Undervaluing properties creates the knock-on effect of sellers having to drop prices and those homeowners who are looking to re-mortgage their property being left with little room for manoeuvre. “Whilst I understand that lenders are operating under severe constraints, it is neither fair nor ethical for valuations to be lowered on the basis that it might reduce exposure to competitive loan rates,”

“At a time of great market uncertainty, homeowners need help not more obfuscation from those operating within the property market.”

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