Insurers set to receive glut of professional negligence claims
Potential claims are likely to be made by banks, property developers and individuals who lost out financially as a result of negligent advice just prior to the economic crash which saw the property market plummet.
Surveyors and solicitors may be targeted speculatively as, although the economic downturn looks evident with hindsight, it may be difficult to prove to a court that there advice was negligent.
Claimants may feel that properties were over-valued by surveyors and that the costs of putting development projects on hold were underestimated, and as the cut-off date for claims comes closer many notifications to insurers are likely to be made.
According to Land Registry figures the average house price in November 2007 was £182,165, but by April 2009 it had fallen to £151,251 – a 17 per cent drop.