Vision report on long-term value methodologies


The next substantial output building on the 2014 report, A Vision for Real Estate Finance in the UK, is published this week, a decade after the last property cycle peaked at the end of Q2 2007. The new report sets out the results of research into the effectiveness of three alternative methodologies for determining a long-term property value metric that lenders might use to help manage cycle risk.  CREFC Europe has been closely involved in this work, which has been conducted with the support and encouragement of the Bank of England, and we have co-sponsored publication of this report.


The expectation is that the eventual conclusions of this work will feed not only into lender risk management practices, but also into the regulatory framework for protecting financial stability and ensuring that underwriting standards are maintained in the exuberant phase of the property cycle.  Please read the report and provide feedback to Peter by 15 September, if you would like your views to be heard regarding where we go from here.