View more on these topics

AVM market to treble, says Hometrack

The market for Automated Valuation Models is set to treble in the next two years as mortgage lending remains strong and lenders increase their uptake of online valuation services to streamline and improve the mortgage application process, predicts Hometrack.

Hometrack has been at the forefront of this evolving market and continues to increase its lead in the industry.

It is expecting its turnover to surge by 100% this year and predicts that by 2008 AVMs will account for over 60% of mortgage valuations up from around 20% currently and only 10% last year.

With the advent of AVMs, providing instant valuations, lenders are able to offer their customers an improved and more efficient service including instant mortgages at point of sale.
Hometrack confirms the view that at least six medium to large lenders will be offering an instant mortgage by early 2007.

David Catt, commercial director of Hometrack, says: The AVM market has increased enormously over the past two years.

Hometrack has been the pioneer of AVMs in the UK and remains at the forefront of this expanding market, with mortgage lenders representing over 70% of the market using our AVM.

Reflecting this, our dedicated AVM team has increased from seven to 21 in the last 12 months.

The expansion in this market is going to be phenomenal and on the back of our success within the lending community we are anticipating new players will enter this maturing market.

As such we believe a milestone has been reached and welcome this competition in the belief that this can only be beneficial to the market as a whole.

Despite the governments recent change of mind on the introduction of mandatory Home Condition Reports within Home Information Packs, the legislative process has lead to a greater awareness of AVM technologies.

Therefore, regardless of the final decision on the introduction of HCRs, Hometrack believes that the use of AVMs will continue to rise.

Catt adds: The decision to remove the mandatory HCRs has had little impact on Hometrack.

The whole HIPs debate significantly raised the profile of AVMs.

However, lenders had already recognised the importance of AVMs specifically for point of sale mortgage years ago, and this was irrespective of HCR introduction.

Utilising proprietary technology developed in-house over the last five years, Hometrack says it has the worlds most accurate AVM based on comparison to performance figures that are published by US providers, deemed to be the pioneers of AVMs.

The online valuation service significantly reduces costs for mortgage lenders as the AVM offers a much faster and less expensive valuation procedure.

Catt adds: We believe we have become the significant market leader as a direct result of both our unrelenting commitment to delivering a highly accurate and predictable AVM and our now extensive experience in providing a straightforward and value-added implementation service to our clients.

Recommended

Review: The Temple Sessions

If ever there were proof that art and finance can mix it can be found in the songs of Andrew Montlake. A Neil Diamond of his day, Montlake sings of romance and casual liaisons. Unlike many of today’s musicians, Montlake plays his own instruments and the gentle strumming on the guitar conjures up a summery […]

Key appointments at Enterprise

Enterprise Group has made four key appointments to its senior management team. Liam Dixon, Simon Jacobs and Jorge Monte have been appointed as service quality managers, with Marie Hughes appointed as head of underwriting.

SMS named top packager

Solent Mortgage Services has been named packager of the year by lending partner Preferred. This is the fourth time SMS has won this accolade.

Rightmove’s operating profit up by 138%

Rightmove has released it interim results for the six months to June 30, 2006 showing that operating profit grew by 138% to 8.3m, before Home Information Pack project costs, flotation costs and share option charges. The substantial increase in operating profit was achieved through continuedrapid revenue growth. Revenue, at 15.1m was up 99% for the […]

Newsletter

News and expert analysis straight to your inbox

Sign up