Property surveyor VAS Panel has designed and launched a standalone house in multiple occupation (HMO) short-form report template to create a “consistent approach” to valuations.
VAS Panel said the HMO sector was growing, and in the last 12 months, the firm had seen a “sharp rise” in valuation requests for the property type, particularly smaller HMOs.
Because of this, the firm decided to provide a “consistent reporting approach from valuers whilst making lenders’ specific reporting requirements even clearer”.
The report will cover whether a property is located in an established HMO vicinity, if all room sizes meet minimum requirements and clarification on planning status.
It will also allow a valuer to discuss area-specific issues such as the supply of HMOs, what attracts tenants to a certain location and letting demand.
David Birch (pictured), valuation audit director for VAS Panel, part of the VAS Valuation Group, 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.
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“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 re-audits, help de-risk our clients’ lending decisions and ensure compliance with lenders’ valuation reporting requirements.”
