# The recording of house selling prices on the land registry



## Kerr (Mar 27, 2012)

What is the legal requirement about the accuracy of recording the price houses have sold for? 

In a few new build areas I've noticed that the land registry shows that everyone has paid the full asking price. However, I know that people have done trade in deals where they have been paid significantly more than their house was worth for their trade in. 

Basically they've been given a huge discount that is hidden in their old house. It also logs two sales one at full price and one showing an increase in prices. It's fudging figures and gives a false sense of a positive market. 

A few of the houses have come on to the market and they are way under the prices they were sold for. A lot less than factoring the trade in deals too. 

I thought the land registry selling prices was an accurate way of finding out how much a house was worth. Clearly that isn't true at all.

I find it deceitful and intentionally set to mislead people.


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## t1mmy (Dec 9, 2006)

Do the selling prices differ to what is recorded on Zoopla or alternatives?


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## fatdazza (Dec 29, 2010)

LR records prices houses are sold for, not what they are worth. 

The registry is not there to provide people with a "Glass's guide"


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## kingswood (Jun 23, 2016)

pretty sure only mortgaged houses are recorded too.

happy to be stood corrected tho. reason being ive seen houses sell in my area that havnt been recorded on rightmove etc, even after years


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## fatdazza (Dec 29, 2010)

Following consultation in 1997, the Lord Chancellor decided to adopt a proposal to amend the Land Registration Rules so a price paid or a value should always be entered in the register when it is practicable to do so.


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## fatdazza (Dec 29, 2010)

kingswood said:


> pretty sure only mortgaged houses are recorded too.
> 
> happy to be stood corrected tho. reason being ive seen houses sell in my area that havnt been recorded on rightmove etc, even after years


Rightmove is not land registry


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## Kerr (Mar 27, 2012)

t1mmy said:


> Do the selling prices differ to what is recorded on Zoopla or alternatives?


I think Zoopla actually use the land registry, but they do make errors.

I had to ask them to remove a false sale on this house for much less than it's worth.



fatdazza said:


> LR records prices houses are sold for, not what they are worth.
> 
> The registry is not there to provide people with a "Glass's guide"


The houses aren't really selling for the prices logged. They are intentionally falsifying what the house was sold for by paying money elsewhere.

I'm not asking the land registry for an accurate current valuation of the house. However I wouldn't expect to see cheating involved with official reporting of the sold price.

I feel sorry for the people that have paid too much thinking everyone in the street paid full price.


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## fatdazza (Dec 29, 2010)

Kerr said:


> I feel sorry for the people that have paid too much thinking everyone in the street paid full price.


Caveat emptor.....

Or in my world, a fool and his money.......


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## c87reed (Dec 9, 2015)

It's all relative anyway as a house is worth what someone will pay at the time. That has gone on for years with new-builds, you pay the asking price but get an incentive to go with it such as a deposit contribution or such like. Once a few sell later down the line the base level will be set.


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## Kerr (Mar 27, 2012)

fatdazza said:


> Caveat emptor.....
> 
> Or in my world, a fool and his money.......


What's the point of the land registry logging actual sale prices if they are clearly falsified?

Given the majority of people buying these houses will have a mortgage these "fools" must also be backed by their lender. They appear to be very careful who they lend money to for houses at the moment. It seems strange they've lent money for houses worth nowhere near their value.

I can see why they have been mislead when they think everyone else in the street has paid the same price. We all know about incentives like fees and furniture etc being covered, but I'm sure most wouldn't know that tens of thousands of pounds has been concealed.


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## JoeyJoeJo (Jan 3, 2014)

Price and value are two very different things unfortunately, just look at what mint, 80's fast fords sell for. I was in Aberdeen in the late 80s/early 90s and sale prices for houses could be 50/60% over the "valuation".

Surveyor valuations should be logged publicly against sales in my opinion, would show differentials both ways.


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## fatdazza (Dec 29, 2010)

Kerr said:


> What's the point of the land registry logging actual sale prices if they are clearly falsified?
> 
> Given the majority of people buying these houses will have a mortgage these "fools" must also be backed by their lender. They appear to be very careful who they lend money to for houses at the moment. It seems strange they've lent money for houses worth nowhere near their value.
> 
> I can see why they have been mislead when they think everyone else in the street has paid the same price. We all know about incentives like fees and furniture etc being covered, but I'm sure most wouldn't know that tens of thousands of pounds has been concealed.


I think you might be getting a bit carried away with this. If it worries you that much, write to your MP 

Mortgage companies do not lend 100% of the value of the property so they have a cushion. Mortgage companies also usually get an independent valuation.

Not sure how you could know whether most wouldn't know of this practice, you have picked it up, so why wouldn't others?


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## Darlofan (Nov 24, 2010)

fatdazza said:


> I think you might be getting a bit carried away with this. If it worries you that much, write to your MP
> 
> Mortgage companies do not lend 100% of the value of the property so they have a cushion. Mortgage companies also usually get an independent valuation.
> 
> Not sure how you could know whether most wouldn't know of this practice, you have picked it up, so why wouldn't others?


Independent valuations? Don't they just look at sold prices for similar properties in the area and go off that? I've been involved in 2 House purchases where mortgage valuer couldn't get in the house, still managed to value them though, might have had no floors or walls for all they knew.


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## Kerr (Mar 27, 2012)

fatdazza said:


> I think you might be getting a bit carried away with this. If it worries you that much, write to your MP
> 
> Mortgage companies do not lend 100% of the value of the property so they have a cushion. Mortgage companies also usually get an independent valuation.
> 
> Not sure how you could know whether most wouldn't know of this practice, you have picked it up, so why wouldn't others?


Considering they bought the properties new, and only influenced by other new buyers, they aren't exactly able to use hindsight.

Lenders don't factor in this margin. They are tight on properties with solid valuations with a proven historical selling history.

I thought I would open the discussion on the forum to find opinion. I knew before I started the thread you'd take exception and take up the fight.

You've had your opinion and I'm not ready to write to my MP yet. It'd be interesting to hear other opinions.


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## fatdazza (Dec 29, 2010)

Darlofan said:


> Independent valuations? Don't they just look at sold prices for similar properties in the area and go off that? I've been involved in 2 House purchases where mortgage valuer couldn't get in the house, still managed to value them though, might have had no floors or walls for all they knew.


They can see the 4 walls, roof and plot size. Probably covers 90 to 95% of the value?

Also worth remembering valuations are only there to really cover the unlikely case of having to re-possess. So given they don't lend full value (anymore!) being a few grand out will not make a difference.


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