Surveyors are facing court actions by lenders over valuations they made before the housing market crashed in 2008. Countrywide alone is expecting to pay up to nearly £12m in claims.
The increase in cases has led to a near doubling of their insurance premiums.
It has been revealed that the UK’s largest estate agency chain, Countrywide, faced 35 writs in the High Court last year from mortgage lenders including Barclays and Bank of Scotland.
Gary Head, underwriting director at insurer Hiscox, said that: “There are potentially a lot more claims against these companies to come through the pipeline as more properties are repossessed and financial institutions realise their losses.”
In a statement, Countrywide stated: “Over the last couple of years, the recession and the fall in house prices has led to a rise in claims throughout the industry.”
In its accounts, Countrywide made a charge of £11.9m in 2010 against an “abnormal increase in the number of indemnity claims”.
It is reported that other surveyors such as Savills and Knight Frank are facing claims.
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