Mortgage lenders pursue estate agents and surveyors over losses
The credit crunch has resulted in a “dramatic jump” in the number of professional negligence claims brought against surveyors and estate agents, according to a City law firm.
Research from Reynolds Porter Chamberlain (RPC) reveals that there were 25 commercial and residential High Court cases against estate agents or surveyors in 2009, compared with one case over the previous five years.
Reflecting on the UK’s property market crash, RPC partner Alexandra Anderson says: “Losses of UK and Irish banks on loans … run to the billions of pounds.”
She adds: “This has put a lot of pressure on banks and investors to pursue any option open to them to recover their losses, including launching a negligence claim against the surveyor who valued the collateral for the loan.”
According to RPC, residential property sector claims have arisen regarding “negligently overvalued development sites, which plunged in value because of falling house prices and a glut of similar new build that was erected in the housing boom”.
Manchester and Leeds, which prior to the property market crash were home to major city centre apartments developments, are mentioned in this connection.