What is it about?
The housing bubble of 2000 – 2007 and collapse in 2008 was due to the disregard of risk in valuations for mortgage.
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Why is it important?
The neglect of the aspect of risk in valuations for house purchase has resulted in negative equity and consequent hardship for many householders. (It also added substantially to the total national debt by borrowing from overseas lenders.)
Perspectives
So far as can be ascertained this subject has never been discussed by the professional institutions. Everyone involved, estate agents, valuers, lending institutions, and of course the Government (through stamp duty and inheritance tax) benefits from rising prices, except the first-time buyer.
Mr Philip Bowcock
University of Reading
Read the Original
This page is a summary of: A discussion paper on valuations for mortgage and the level of house prices, International Journal of Housing Markets and Analysis, March 2015, Emerald,
DOI: 10.1108/ijhma-07-2014-0024.
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