Hometrack plans for Basle II

Hometrack says updated technology and new management are key to its plans for helping lenders meet the credit risk management requirements of Basle II.

The credit directive dictates that lenders must monitor and conduct regular reviews of property valuations, particularly if market conditions are changing rapidly.

This will include data central to risk profiling on property valuations including factors such as supply, unemployment and interest rates.

To meet this demand, Hometrack has combined its automated valuation model and its interactive housing evaluation system RealDemand, to create RealRisk. This will allow lenders to look at risk drivers concerning properties either online or by integrating RealRisk into their own systems.

To oversee the move, Gary Styles is to join the project as strategy and risk director in September. Styles was head of planning and group chief economist at HBOS for 15 years and was responsible for the Halifax House Price Index and the Halifax Economic Outlook.

He has been advising banks and societies on the Basle II changes for several years. He was a founder director of Baseline Capital, established to pool data for smaller lenders for Basle II purposes, as well as chairman of Acadametrics, the London-based economics consultancy.

Last week Hometrack was accused of dirty tricks after two directors from rival UKValuation switched alliance.

But Giles Mackay, chairman of Hometrack, says: “We are winning market share through accuracy not dirty tricks. My job is to make sure we have the best model in the market.”

Mackay adds that the company will be making several high profile board appointments in the second half of this year.