Brokers deem valuation issues the biggest problem they face this year

Valuations and borrowers’ personal finances are the two most prominent factors brokers think will impact the property finance market, according to the latest Shawbrook Bank data.

The survey of 187 brokers revealed that 59% of intermediaries believe the biggest barrier for property purchases this year will be clients’ personal finances, with the end of government support, furlough schemes, and business bounce back loans listed as key drivers of this. 

Some 34% cited job uncertainty as the biggest obstacle for their clients.

For brokers, there is an overarching consensus (76%) that the biggest challenge they are likely to face this year will be issues with valuations.

Despite this, 82% of intermediaries surveyed are confident about the UK lending environment until the end of the year, despite the stamp duty holiday coming to an end.

Gavin Seaholme, head of sales at Shawbrook Bank (pictured above), said: “The housing market was strong before the pandemic and has proved resilient throughout — therefore it is no surprise that broker confidence remains high for the market for the rest of 2021. 

“Brokers have a key role to play in supporting and advising their clients on their next step, whether that’s a new property purchase or remortgage. 

“While landlords’ and investors’ finances are expected to be the biggest barrier to property purchases in the next six months, ensuring clients are aware of all of the funding options available to them may make adding a new property to their portfolio a real possibility.

“When it comes to challenges facing brokers, issues with valuations remain a top concern; it is important that lenders do what they can to support brokers with this. 

“At Shawbrook Bank this year, we have expanded the use of AVMs and widened our valuation panel, with a dedicated panel of valuers for bridging cases. 

“We will continue to think of ways we can alleviate these concerns among our broker community.”

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