VAS Panel has launched a standalone Short Form Report Template to standardise valuations in the growing house in multiple occupation (HMO) market.
Over the past 12 months, the firm has seen a significant increase in valuation requests for HMOs, particularly smaller ones, and has responded by enhancing consistency in reporting from valuers.
The HMO report template addresses key areas, such as whether the property is located in an established HMO area, if room sizes meet minimum requirements, and clarification of planning status.
It also allows valuers to discuss local factors like HMO supply, tenant attraction, and letting demand.
David Birch (pictured), valuation audit director for VAS Panel, said: “The increased number of HMO valuation reports has coincided with a significant increase in post-valuation queries (PVQs), and this is because valuers are adopting different valuation methods.
“Small HMOs in particular are in the grey area of valuations, of which there are few sales, which is why we have spent the last few months creating an HMO Short Form Report Template to create clarity.
“We are convinced that this new form will assist valuers and surveyors, reduce the number of PVQs, improve audit results, reduce the number of reaudits, help derisk our clients’ lending decisions and ensure compliance with lenders’ valuation reporting requirements.”
