The assessment of the reduction in value of a building caused by the discovery of defects or D = P – (c/y) Available to Purchase

Discusses the current policies used in the assessment of the reduction in value of a building by the discovery of defects, using examples from court cases. Outlines the problems with the current methods and suggests further ways of assessing the value of a defective property. Examines the effect of the market on diminution and suggests the use of the formula D = P – (c/y) to calculate it. Explores the effect of urgency of a repair. Suggests that the absence of an agreed method of calculating diminution in value has led to the courts making their own rules.