The Intermediary – April 2025 - Flipbook - Page 79
T E C H N O L O GY
Opinion
By accumulating
the right data and the
right expertise, we are
now saving lenders time,
solutions for accurate and quick
mortgage lender grade property risk
assessments and valuations, enabling
lenders to remain competitive in a
rapidly evolving lending market.
In answer to the hugely varied
demands of assessing UK homes’
values, the modern surveying and
valuation firm now provides a hybrid
offering. It’s not sufficient simply to
rely on digital, nor is it sensible to
rely solely on the experience –and
biases –of an individual who assesses
a property. What is needed today is a
combination of both.
Definition of insanity
The UK’s housing stock is too varied
to allow an algorithm to determine
value. For a start, the available data
which feeds into valuations is still
growing and developing in scope. The
output is as good as the input, and as
such, judgement based on an actual,
physical inspection of a property
allows for an accurate interpretation
of the information in front of us.
To borrow a quote generally
aributed to Albert Einstein: “The
definition of insanity is doing the
same thing over and over again, but
expecting different results.”
That’s the danger if you overlook
experience. As human beings, what
we have seen in the past informs how
we interpret what we see in the future.
Basic as it sounds, assuming that the
valuation paern in one new housing
development will repeat in another,
in a different location, is madness.
There are so many variables that
affect the desirability of a home, not
least employment prospects, schools,
transportation links, what housing
stock is in the surrounding environs,
crime rates, environmental risks. The
list goes on.
But – and it’s a big but – expertise
and experience only take you so far.
By their very nature, both come down
to individuals and teams. Experience
is of huge value in a relatively small
money and risk by offering
solutions that deal with
new-build, cladding
and non-conventional
build – to mention just
three areas”
locale. Experience is at its most
valuable when it is shared collectively
and with discernment.
The third piece of the puzzle is data.
Alone, running statistical models will
give you probabilities and averages
and likelihoods. Alone, experience
and expertise will give you nuance,
detail and accuracy. Together, that’s a
powerful combination.
By accumulating the right data and
the right expertise, we are now saving
lenders time, money and risk by
offering solutions that deal with newbuild, cladding and non-conventional
build – to mention just three areas.
Our new-build database allows us
to monitor exposures to sites and
build types.
Data means we can extend our
reach into alternative market
segments while our expertise on a
physical inspection level means we
can benchmark and validate the data
sources we have.
Why does this maer? Because, as
the years pass, our UK housing stock
becomes more nuanced and its value is
perceived differently.
Take energy data. It is shaping
consumer and industry aitudes.
New-build is also changing beyond
recognition, and impacting the
value of surrounding housing. To
understand all this, you need partners
who can help make homebuying a
quick decisive business. ●
April 2025 | The Intermediary
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