A practice run for the market upturn

5 July 2010

The valuation industry is experiencing something of an upswing in demand at the moment, although nobody I’ve spoken to is sure of the reason for this.

On the surface, not much has changed. The macroeconomic environment remains challenging, lenders are constrained in their ability to lend and other factors imply that a sustained rise in demand is unlikely.

We could therefore be seeing a blip generated by a combination of factors including catch-up after the volcanic disruption which affected many areas of the economy recently.

Anyway, my view is that the industry should use this rise in demand as a dry run for coping with future sustained growth.

With perhaps 20% fewer active chartered surveyors in the market following the credit crunch firms need to raise their game if they are to retain their important relationships with lenders and intermediaries.

The good news is that the way to do this is simple - consistent and strong performance.

When a surplus of demand exists valuers seek to work first with lenders that have efficient processes and pay equitable fees.

Lenders also need to respond to the new world, perhaps by instructing valuations earlier in the process or introducing innovative fee structures related to performance.

It feels odd to be talking in these terms at this point in the cycle but this is certainly high on the agenda for our business. As all good scouts know, it pays to be prepared.

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