Keeping afloat

In the run up to the general election, property pundits are attempting to predict the effects of the uncertainty on the market. No doubt they are also concerned by events elsewhere in Russia and Europe, in general. What no one wants is a return to 2008—the effects of which are still even now being felt in the valuation industry. During the course of 2007 there had been a huge growth in lending against development sites. By 2008 many of these sites had suffered substantial reductions in value—leaving the loans secured against them “underwater”. This in turn produced a surge in claims against valuers. Although the last of these are now working their way through the courts, the profession and its insurers are still reeling. Last year produced a rash of cases where the courts provided some balance on the division of responsibility between bank and valuer. However, to some at least it appears that the courts approach remains weighted