Realtime Buy-to-let can be used for both individual properties and large portfolios. The model, which incorporates both an “assessed” and “market” rent output, allows lenders to gain an enhanced and objective risk assessment of a loan and potentially better inform their landlords.
In addition to the property valuation and associated confidence level currently returned by the Hometrack AVM, the model will deliver “assessed” and “market” rents accompanied by confidence levels. The buy-to-let model capitalises on the wealth of price and market information within the existing model, while incorporating new elements of rental market data from lenders, property portals and surveyors. This allows the user to establish ‘systematic business rules’ to determine when and where the buy-to-let AVM result can be effective as an alternative to the traditional survey. The level of activity in the rental market influences rental confidence levels and as such analysing the rental confidence levels returned by the system can also identify the relative quality and risks associated with a specific or local rental market.
The instant nature of the model will enable lenders to carry out valuations for loan decisioning, pre-completion audits, mass portfolio appraisals, and whole loan due diligence as well as ongoing risk evaluation. Also, lenders will benefit from the commonly associated advantages of an AVM, which include significant cost savings and productivity efficiencies.
For Hometrack’s current customers the roll-out of the system will require minimal adaptation, as it will be carried out within the current technical interface.
David Catt, commercial director at Hometrack, commented: “The Hometrack model is the first buy-to-let AVM capable of delivering reliable, accurate and commercially viable rental results for an individual property or portfolio of properties.
"The resultant output on each property is individual to the specific property and its associated characteristics.
"This represents a quantum shift from historic approaches to estimating area average rents or implied yields. We have already received significant commitment for this product from lenders that have benefited from the market leading AVM, Realtime. The model will offer lenders a distinct advantage over existing practise, delivering invaluable additional information for the buy-to-let market, within an objective risk assessment tool.”
