Q2 2024 Valuation Update

With Summer coming to an end, the prime conditions for valuation inspections in glorious sunshine will soon give way to the challenges of Autumn's wet and cold weather, and reduced daylight hours.

Q2 2024 was a particularly busy period for our valuation department, with a diverse mix of work from private clients, banking clients, and leasehold reform clients. The team provided over 120 valuations across 12 outward postcodes, with an aggregate value of £95 million. The highest individual valuation was £16 million for land, while the highest commercial valuation reached over £6 million for a large industrial unit in Milton Keynes.

Loan security valuations, especially in the challenger lender market, have kept us busiest. Retail/mixed use remains our most active sector, closely followed by industrial. Remortgaging continues to dominate our workload, reflecting market trends where limited freehold availability of certain assets, particularly in the industrial sector, keeps demand high for those properties that do come to the market. The rise in bridging finance may also be driving remortgaging as purchasers seek to avoid delays in ongoing transactions.

At the start of Q2, we saw an increase in valuations for financial reporting (accounts) purposes, spanning multi-let industrial spaces, offices, retail properties, and land across several large portfolios.

In May 2024, the enactment of the Leasehold and Freehold Reform Act 2024 during Parliament's washing up period triggered a surge in lease extension enquiries. This represents the highest level of interest from leaseholders and freeholders we've seen in the past two years, driven by pent-up demand and the hope of securing lower premiums.

Adam Smylie, Head of Valuation at Kirkby Diamond, commented, “Our team handled a wide variety of work during Q2. It's encouraging to see renewed interest in valuation services, particularly for secured lending valuations. With interest rates at their highest in nearly 20 years up to August 2024, many applicants held off from remortgaging (unless they had to), hoping for a rate decrease once inflation was under control.

Kirkby Diamond’s strong private client base, which includes organisations with large asset holdings, continues to grow across the markets that we operate in. Our merger last year with Bowyer Bryce in Enfield has strengthened our valuation offering in North London and Essex, benefiting both new and existing clients across our core markets.

Looking ahead, with a potential interest rate reduction of at least 0.25% by year-end, we may see more momentum in the secured lending market as borrowers become more optimistic with rates moving towards the new normal.”

If you like what you hear and are interested in joining our team, we are always on the lookout for talented individuals and are actively recruiting Valuers. Visit our website at kirkbydiamond.co.uk to learn more about opportunities and see if we're a good fit for you.

Adam Smylie Head of Valuation: adam.smylie@kirkbydiamond.co.uk 07729 526 416.