BVWire—UK has been following the evolution of the property appraisal market as it switched to data-only valuations in response to COVID-19 (and mortgage lenders either stopped issuing new loans, or significantly reduced their maximum loan-to-value cap, effectively keeping most new buyers out of the market).
With last week’s news that physical inspections will again be allowed, all of the major lenders increased their LTV caps—for example, Platform and Hampshire Trust Bank went to 75%, while Coventry and Accord both returned to 85%.
Many lenders also changed their fixed rates—either up or down—but most of the changes are less than 10 basis points.
Most appraisers are reporting that sellers often won’t admit surveyors, so it appears a hybrid model may result for the near future—lenders will approve loans with a physical inspection if available, or without, if access is not possible.
As the COVID-19 crisis continues, it appears performance standards for real property valuation under RICS may be changed permanently.
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