A Midlands commercial property expert says banks are lending again but is highlighting a shortage of valuation professionals in his industry.
David Penn, the managing director of Shortland Penn + Moore – which has offices in Birmingham and Coventry – has seen a year-on-year increase on the number of property valuations it undertakes of 13, 37 and 58 per cent over the past three years.
Penn, a board member of the Coventry and Warwickshire Chamber of Commerce, said the recovery after a recession always leads to issues across a range of sectors. And, in his profession, a shortage of valuers will be a barrier to growth in the coming years as banks start to lend even more.
He said: “Our business is performing very well across all strands and our valuation department, in particular, is doing exceptionally well.
“It has grown significantly in the past three years culminating in growth of 58 per cent in the last financial year.
“There is very little doubt that the banks are beginning to lend more and that is having a positive knock-on effect for us. It is leading to more regular valuation work – from residential developments to all areas of commercial property.
“Some banks are lending more than others but there is certainly competition out there now and that’s good news not just for our sector but the economy as a whole.
“We believe that the banks will be lending a lot more in the coming years which will require more valuation activity, particularly when commercial development starts to intensify.
“So the headache for chartered surveying practices across the region – and the country – is not having enough valuers to satisfy demand. We certainly need to expand our team to meet the demand here.
“This is a good headache – if you can call it that – to have and certainly beats the one caused by the banks not lending but it is something that needs to be addressed.
“Economic recovery always brings its own hurdles. Industries such as construction are also seeing a real shortage in skills now that it has picked up and this is one particular issue that has arisen in the commercial property world.
“In the medium-term, we need to find a way of pushing through younger professionals to become trained valuers but in the short-term we have to find the right personnel to maintain our growth in this area.”