In today’s economic climate, holders of mortgage and residential property portfolios require accurate valuation of their underlying collateral. Many lenders have turned to the use of an Automatic Valuation Model (AVM). However, for regular revaluations, updating sound past values such as from surveyors or from an AVM, Acadametrics offers affordable solutions as follows:

Acadametrics Residential Asset Calculator (ARAC) data comprise the Acadametrics Prices and Transactions (APAT) average price series supplemented, for revaluation use, with estimated averages for cells which would, otherwise, be vacant because of lack of data. ARAC takes entered portfolio data and calculates revaluations with loan level confidence measures. ARAC, available for use by lenders in-house, provides the data for our:

Residential Property Portfolio Revaluation (RPPR) service. We take e.g. quarterly loan data from a lender and return updated revaluations at far lower cost than would be incurred using an AVM. Such revaluations comprise the first stage, too, of our Stress and Scenario Testing (SST) service.

Testing Indexation paper shows that indexation can provide accurate revaluations at portfolio level, when using ARAC county, unitary district and London borough data inclusive of property type where reliable first prices are available.

Confidence Interval Tables specifically designed for organisations using traditional indices or APAT for internal revaluations, based upon the spread of prices within the APAT averages, are available as tables of standard deviations, listing values one and two standard deviations below and above the APAT averages; a representative spread was obtained by an analysis of duplicate sales recorded by the Land Registry.

Further information is provided within a series of downloadable documents free of charge here.