VAS Panel recently introduced a new Short Form Report Template specifically designed for valuing houses in multiple occupation (HMO) in the UK. The company has noticed a surge in valuation requests for HMOs, especially smaller ones, and has taken steps to standardize the valuation process.
The new template covers important aspects such as the property’s location in an established HMO area, whether room sizes meet minimum requirements, and clarification of planning status. It also allows valuers to consider local factors like HMO supply, tenant attraction, and letting demand.
David Birch, the valuation audit director for VAS Panel, explained that the increase in HMO valuation reports has led to a rise in post-valuation queries (PVQs) due to varying valuation methods used by valuers. Small HMOs, in particular, present challenges in valuation as there are limited sales data available.
The development of the HMO Short Form Report Template aims to provide clarity for valuers and surveyors, reduce the number of PVQs, improve audit results, minimize the need for reaudits, help mitigate risks for clients’ lending decisions, and ensure compliance with lenders’ valuation reporting requirements.
This initiative by VAS Panel underscores the importance of standardization and consistency in the valuation process, especially in the evolving HMO market. By addressing key areas and local factors in a structured template, the company aims to enhance the overall quality of HMO valuation reports and ultimately benefit both valuers and clients in making informed decisions.