The Bank of England report, which provides information on business conditions from firms across all sectors of the economy, is based on 12 regional agents’ view following discussions with 700 businesses across the UK.
“There were more reports of transactions falling through due to surveyors down-valuing properties, reflecting concerns about falling prices,” said the report. Moreover, the market has softened in the higher price brackets, according to the BoE issued document.
The central bank’s report also acknowledged that Help to Buy was regarded as “crucial to sustaining demand among first-time buyers”.
“In the residential mortgage market, both lender and broker contacts reported that competition remained intense, driven by new market entrants and low funding costs,” it added. However, it said that the competition was mainly focused on customers with only the cleanest of credit history.
Earlier this month, E.surv director Richard Sexton wrote about what a down-valuation really means and discussed how important the valuation process is during a mortgage.