Friday 21 October 2016

Drive-by and desktop property valuations among the practices which led to housing crash - Banking Inquiry

Philip Ryan and Niall O’Connor

Published 27/01/2016 | 12:09

Inquiry chairman Ciaran Lynch
Inquiry chairman Ciaran Lynch

DRIVE-BY and desktop valuations were among the practices which led to inflated property prices and eventually caused to the housing crash, the Banking Inquiry has found.

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At the height of the property boom, estate agents regularly used drive-by valuations to cost house prices before sales.

Drive-by and desktop valuations cost less than full valuations but do not involve estate agents entering properties to estimate a house’s worth.

As property prices soared, banks and homeowners regularly relied on this method of valuation before agreeing sales.

The Banking Inquiry's report is understood to state: “As the property boom took hold, reliance on informal desktop and drive by valuations – which not did involve physical inspection of the property – became more prevalent”.

The report will be officially published at 3.30pm this afternoon and will be followed by a Dáil and Seanad debate.

The report contains three volumes – the first is the introduction, findings and recommendations, the second is recommendations for changes to the legislation for future running of inquiries and the third is all documentary evidence considered in preparing the report.

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