"Daylight robbery" of property valuations

Some estate agents are getting away with "daylight robbery" in their property valuations, a damning report from Which? has warned.

11:49 10 May 2005

Some estate agents are getting away with "daylight robbery" in their property valuations, a damning report from Which? has warned.

A new investigation by the consumer watchdog found that different agent's valuations can vary by as much as 125,000.

Researchers posing as sellers invited agents to value 14 homes across England, with the top valuation in six of these coming out at 25 per cent or more above the lowest.

"The current consumer protection system is hopelessly ineffective and allows rogue estate agents to get away with daylight robbery," explained Which? editor Malcolm Coles.

Halifax valued one home in Tyne & Wear at 200,000, while Moody and Co suggested it was worth 325,000 - an increase of 63 per cent.

Meanwhile, Bradford & Bingley thought a house in Liverpool was worth 125,000, while Halifax came in at 180,000 - 44 per cent more.

The deliberate overvaluing of a property is a common problem and is often referred to as 'touting' for business, the report warned.

Some agents give high valuations to get a customer's business, then suggest a more realistic price once they have locked sellers into a contract.

The Which? Move It campaign wants all estate agents to be regulated by an ombudsman.

Mr Coles added: "For two years Which? has been demanding that all estate agents are members of an independent redress scheme.

"This new government must put legislation in place to protect consumers when making what is often the biggest purchase of their lives."