The VAS Panel has introduced a new template to streamline valuations in the HMO market.
- Significant growth in the HMO sector has led to diverse valuation methods, causing confusion.
- The new template aims to provide clarity and consistency, especially for smaller HMOs.
- Valuers will now assess key factors like location, room size, and local demand.
- David Birch emphasises the form’s role in reducing post-valuation queries and supporting lenders.
VAS Panel has launched a new Short Form Report Template designed to standardise valuations in the increasingly popular house in multiple occupation (HMO) market. This initiative comes in response to a marked increase in valuation requests over the past year, particularly for smaller-scale HMOs. By introducing this template, VAS Panel seeks to ensure greater uniformity and reliability in valuer reports.
Valuation differences have been problematic, particularly among smaller HMOs that often fall into a grey area with few comparable sales. This has resulted in varied valuation methods and subsequent post-valuation queries (PVQs), which have proved challenging for both valuers and their clients. The new report template directly addresses these issues by providing a structured approach to valuations.
Valuers using the template will focus on several critical components: confirming the property’s location within an established HMO area, verifying that room sizes meet minimum standards, and clarifying the planning status. Furthermore, it provides space for discussion regarding local factors that might impact the property’s value, such as the supply of HMOs, tenant appeal, and general letting demand.
David Birch, the valuation audit director at VAS Panel, highlighted the crucial impact of the new template in aligning valuer methods and reducing post-valuation questions. His statement reflects the optimism within the organisation that this structured approach will also improve audit outcomes, lower the frequency of reaudits, and strengthen the accuracy of lending assessments while ensuring compliance with valuation reporting standards.
The introduction of this template marks a significant step towards enhancing clarity and reliability in HMO valuations.
