Richard Sexton, business development director of e.surv, said: “It’s potentially risky to be the only lender on one site but in the past, it has been very difficult for lenders to measure their concentration risk.
“With access to the New Homes Register, our clients will gain a better understanding of their participation in each development. Because the register provides benchmarking data establishing reasonable estimates of value on new sites before lenders instruct a valuer, it can also potentially save a lot of money and help manage expectations at an early stage in the home buying process.”
Lenders with access to the database will also be able to access information on 1,669 developments and in excess of 117,000 recently constructed residential properties across the United Kingdom. e.surv estimates that it will list an additional 585,000 properties over the next five years.
Sexton added: “As developments are often released in stages, some lenders have limited their lending based on inaccurate unit numbers. By identifying the actual current development size, the register can renew lenders’ appetite to support purchases on these developments. That’s good news for both the purchasers and people throughout the mortgage value chain.”
David Finlay, director of intermediary at Woolwich, said: “I’ve been talking to Richard and from a lender’s perspective it’s a real opportunity to get an insight into both our existing exposure and where new opportunities exist. It allows you to see where you’re invested but also where you aren’t.”
