COMMENT
Shortage of young blood The pursuit of responsible, managed risk lending is not the only reason why the surveyor-lender relationship is so crucial. The surveying industry is suffering from
a shortage of newly qualified residential surveyors (a total of just nine in 2010). The average surveyor age is currently in the mid 50s and will continue to rise. The incentives to make surveying an
attractive profession to join seem few and far between, while decent apprenticeship schemes are practically non-existent. This should be the time for action by its professional body, the Royal Institution of Chartered Surveyors (RICS). The situation in London and even parts
of the South East is even more difficult. The capital’s micro property market remains vibrant, largely supported by the buy to let and high-end sectors. Both of these types of property can present greater challenges to lenders’ credit policies and, in isolation, AVMs have been shown not to work well in these categories. Yet the shortage of young blood joining
the profession in the capital and with some 50 per cent of experienced professionals
having left the industry, surveying capacity is coming under increasing pressure, even with depressed transaction levels. This, when coupled with a downward
pressure on the fee paid to the valuer against a backdrop of rising costs, means there comes a point at which the price for the job versus the higher risk incurred becomes unsustainable. That’s when either quality is compromised or the valuer exits the market, voluntarily or otherwise, putting further pressure on capacity. So valuers are rapidly becoming endangered species. This problem could be partially
addressed by London weightings in surveyor fees, which reflect the different nature, risks and costs of operating in the capital. Until this happens however, the industry could face a struggle to secure new recruits.
Important relatIonShIpS And if there are not enough surveyors to meet the demand for property valuations, lenders may have to turn back to AVMs, which have not always proven to be the best option in the past.
This realisation brings us full circle, highlighting the importance of a collaborative relationship between the two sectors. Perhaps it is time for the various
industry sectors to take stock and ensure that the path that they are following is the best one and that they are not working at cross purposes. We should be working together to
combine our collective experience and expertise to develop a sustainable solution to the industry’s challenges. Real and profound issues are facing our
industry and it is evident that we are seeing a fundamental structural change to the housing market. This demands a radical rethink on a number of levels and across a number of stakeholders. It requires collaboration from all of those stakeholders to conceive a longer term, sustainable plan that works for everyone.
Alison Beech is Business Relationship Director and Head of Valuation, Spicerhaart.
Flamefish Ad qtr page.pdf 1 17/10/2011
Any views you’d like to express on this?
www.propertydrum.com/articles/surveynov
10:37
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enquiries@thepropertymarq.com PROPERTYdrum NOVEMBER 2011 35
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