UKValuation (UKV) has defended automated valuation models (AVMs), saying they are just as reliable in a falling market as a rising one.
Some brokers and lenders have expressed concerns AVMs would not be able to properly account for falling house prices, making their valuations useless for a mortgage application. UKV says the problem is many brokers and lenders have yet to test their AVMs in a stalling or declining market and they therefore believe the model will not cope with such conditions. Mark Witherspoon, CEO of UKV, says: “Since we brought AVMs to the UK eight years ago, property prices have steadily risen – until now! “The latest house price indices reflect a market which is close to stalling in some areas and w...
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