A new report designed to help house builders derive accurate land valuations prior to acquisition has been launched.
The Pricing Viability Appraisal (PVA) has been designed by DSL (Developer Solutions Ltd) in conjunction with mortgage lenders, valuers, and house builders. It delivers detailed local market analysis gathered by an on-the-ground qualified RICS valuer and supported by wider pricing, planning and demographic data.
Information contained in the report will help inform house builders on product mix – making sure the right product is built to meet the community’s needs – and price setting prior to build out.
Chris Gregory, managing director of newly formed DSL, commented: “This is a comprehensive report – a powerful and reliable base from which house builders are able to support negotiations with landowners, planners and local authorities (notably in S106 allocations and viability).
“The aim of the report is to drive consistency into the valuation process by providing all the research and evidence needed to support values.”
As well as appealing to developers, the report has been designed to support a range of stakeholders including landowners looking to optimise value, mortgage lenders wanting to support their valuation risk analysis and development funders assessing their exposure to Gross Development Value (GDV).
Gregory draws upon a wealth of experience in banking, financial services and property built over 30 years. During this time he set up and ran the first national new build mortgage IFA brokerage, working alongside some of the country’s largest developers including Berkeley Homes, Taylor Wimpey, Barratt and Persimmon. As business development director at Hometrack he drove the implementation of solutions for the new build housing sector.
Commenting on the report he said: “This is the first of a suite of products which DSL is launching to the market. The company aims to provide a range of independent solutions for each stage of the development cycle from land search, buying and planning to sales and marketing. The intention is to improve relationships between all parties – from landowners to mortgage lenders – helping to encourage a culture of openness across the sector.”
“The current process for assessing new build valuations for mortgage purposes is far from perfect. Our aim is to provide consistency and a reassurance to lenders looking to assess sustainable risk.
“The reports have been launched at a time when government initiatives are helping to drive new build sales. The need for measured controls to prevent house price inflation leading to unsustainable runaway land prices has never been greater.”
This article was originally published on the Mortgage Finance Gazette on 20th May 2014