Use of AVMs may become restricted to surveyors soon

Automated valuation models will only be used by chartered surveyors rather than lenders in future, according to Richard Sexton, director of business development at e.surv.

Sexton says AVMs penetrated the market quickly but were used inappropriately by some lenders.

He says: “At the moment no lenders are using AVMs for purchases and only around 10% are using them for remortgages. We are moving towards a situation where AVMs will only be in the hands of chartered surveyors rather than lenders.

“Lenders are pushing surveyors on quality. They are starting to audit them because of regulatory requirements and this will lead to consolidation in the sector.”