View more on these topics

Valuers are caught in a perfect storm

Recent weeks have seen more companies exit from the valuation market, with respected players such as Christopher Rodgers and Ashdown Lyons going into administration.

These are just the latest high profile examples of a trend that may have passed you by, given the wider turmoil in the market.

In the past 18 months, small and medium-sized players such as Lexicon and Habitus have been folding virtually on a weekly basis.

There are obvious reasons for this. Valuation instructions are estimated to be 70% lower than at the start of the crunch, and the fall for some firms must have been even greater as lenders have reduced their panels.

Industry consultant Jonathan Cornell hit the nail on the head in Mortgage Strategy recently when talking about a company closure, commenting that with brokers not able to instruct surveys, the firm found the going tough.

But the corollary of this must be that lenders – that control some 95% of instructions – had also stopped supporting the firm.

Lenders have their reasons for withdrawing support. For example, they have understandable concerns about business robustness and professional indemnity cover.

Insurers are playing it tough with valuers, raising premiums or even withdrawing cover.

So income down, costs up, PI cover limited – it’s a perfect storm. Even in the unlikely event of a quick market upturn, expect more casualties.

Recommended

Home Buyer Systems sees surge in broker fee volumes

Home Buyer Systems, a sourcing, sales and compliance system for mortgage and general insurance brokers has seen a 94% increase in the volume of broker administration fees processed through its system, compared with 2008 levels.

Invest in excellent customer service

Have you ever returned to a restaurant where you’ve had bad service in the past? The chances are you haven’t and you certainly won’t have recommended such a place to your friends.

Adviser Matrix expands offering

Adviser Matrix, the free independent research service for financial brokers, is now dealing with 17 networks and national IFAs.

China tech and Global Alpha: a new great leap forward

By Robin Geffen, Fund Manager and CEO

Internet giant Alibaba is exactly the type of entrepreneurial company that the high-conviction, top-performing Neptune Global Alpha Fund seeks to invest in. Established just 14 years ago in an apartment in Hangzhou, today Alibaba is larger than Amazon and eBay put together and is challenging some of the most powerful internet companies in the world…

Read more 


Important information

Investment risks

The value of an investment and any income from it can fall as well as rise and you may not get back the amount originally invested. Forecasts and past performance are not a guide to future performance. Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. These are Neptune’s views and as such this document is deemed to be impartial research. We do not undertake to advise you of any change to our views.