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Hometrack joins European firms in automatic valuation promotion

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  • 25/02/2013
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Hometrack joins European firms in automatic valuation promotion
Property analytics firm Hometrack has partnered with firms in the Netherlands and Norway to launch a European property alliance.

The trio of companies have joined forces to create the European AVM Alliance (EAA) in order to promote the use of automated valuation models (AVMs) across Europe.

The EAA will include the UK’s Hometrack, Calcasa from the Netherlands and Norway’s Eiendomsverdi. The group aims to standardise and promote AVMs across Europe with a new code of conduct to be established.

Lenders use AVMs to obtain quick property valuations based on house prices in the area, sale prices of similar properties and market trends. This helps the lender detect against fraud and better understand the risk of mortgaging a property.

The organisation said that greater use of AVMs would increase transparency in the market and create an environment of more effective risk management for mortgage lenders and regulators.

Andrea Biguzzi, director of strategy at Hometrack, said: “From speaking to our clients within the mortgage lending industry, as well as other stakeholders, such as the investor community, the rating agencies and financial regulators, we know that there is a real need across Europe for the increased transparency and better risk management that AVMs can deliver.

“We see real benefits to be gained by clients accessing AVM services that adhere to consistent quality standards, irrespective of the location in which they are provided.”

Sigmund Aas, partner at Eiendomsverdi, added: “Norway has seen a significant growth in the use of AVMs over the last five years – today they are being used by almost every bank in the country.

“This is indicative of what’s happening across Europe as a whole. The EAA brings together some of the best operators working in the AVM space today.

“Their joint aim is to make it easier for those business involved in residential property to operate. We are delighted to be a founding partner of this enterprising alliance.”

The EAA will meet formally three times a year and is looking to extend its membership across Europe.

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