An Investigation into the Valuation of Domestic Property in Close Proximity to Former Mine Workings
||Sagoo, Amritpal and Martin Livette
||An Investigation into the Valuation of Domestic Property in Close Proximity to Former Mine Workings
||Book of Abstracts: 2005 European Real Estate Society conference in association with the International Real Estate Society
||The valuation of property in close proximity to mine shafts has become increasingly difficult with the introduction of the 20 metre rule by the Law Society in 1991 and with mortgage lenders being more aware of the risks involved in property lending. Chartered surveyors use the Red Book as a basis for valuation, but this provides guidance on procedural matters rather than firm guidance on valuing properties, including those affected by mine shafts. Mortgage lenders and insurance providers have developed a framework for dealing with such property. Nonetheless, recent adverse publicity in the media has led to a reduction in the demand for affected dwellings. This paper, therefore, comments on current methods used to value domestic property close to former mine workings. Data were collected by postal questionnaire from a random sample of surveyors in the Black Country area of the West Midlands region of the UK. The research explores interpretation of existing guidelines and compares and contrasts the methods of valuation used. The findings demonstrate a correlation between between the value of a property and distance from a mineshaft, and that a better framework of guidance can be identified. The paper makes particular recommendations for further study of the valuation problems caused by mining activity.
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