After almost 34 years at e.surv, why was it the right time to change roles?

It was a very big decision because I had been there a long time. e.surv has been very good to me and they’ll continue to be a massive success. They are one of the market leaders and will continue to be in that position. However, after being at the company 34 years, it was time for a new challenge. I started having conversations with Houzecheck and while I thought there would be a risk associated with moving roles, I also thought if I don’t do it now, I’ll probably never make a decision – it was scary but also exciting.

What attracted you to HouzeCheck?

HouzeCheck is a nimble business, which is at the beginning of its journey, in some ways the opposite to e.surv which is a mature and successful company. The fact HouzeCheck is much earlier in its journey appealed to me because it gives me a chance to build something again. I was very proud to be part of the team that built what became e.surv and this is a chance to do that again, or at least to have quite a lot of influence in doing so. Houzecheck is fresh thinking around technology and there is an entrepreneurial kind of culture. 

What are the company’s plans for the next 12 months?

We definitely want to build our surveyor numbers and strengthen our national network as well as increase the number of businesses that we work with. This will be businesses that refer customers to us as private customers to get private survey advice because I still think there’s a big gap in the market there. 

Currently, one in five people who buy a house get a private survey, which is crazy when you think it is the most expensive thing ever to buy. There are lots of consumers that are not getting the right advice, and we think we can help by working with other business partners. We want to expand our product and meet targets of our big technology-based agenda. 

What are your thoughts on the current state of the surveying and valuation industry?

It is a mixed bag. The valuation and surveying industry are both bouncing back after the Liz Truss Budget in September 2022. It was really bad for all of our industries and the year after didn’t get much better. This year looks like it’s improving and has a much more positive outlook to it. However, we will see some consolidation and business exits because some businesses have been damaged beyond repair. So even though the market is now better, and consumer confidence has improved, it might be too late for some. This year will be very telling in terms of who is left standing at the end of it.

If you’re talking about the lending sector, there are governance standards that lenders rightly expect to protect the consumer and everybody else in the process, such as data protection, modern slavery and other policies. However, if you want to play in that space as a surveyor or valuer, you have got to meet that standard and it’s really expensive to do so. There’s a bit of an unfair advantage for larger players because the cost per head of doing that is lower than if you’re a small- or medium-sized player. There’s a bit of polarisation going on with the big getting bigger and the more compact needing to specialise in niches a bit more rather than just relying on the core lender market. 

What are the biggest challenges?

It is an RICS requirement for valuers to have professional indemnity insurance and people will not work with you unless you have it. The cost to take out one of those policies is becoming more expensive, which means before valuers start out, they must find a premium to get a professional indemnity policy. Insurers continue to drive prices up and in some cases are putting a limit on the types of work that can be done. For example, they are happy to provide some insurance but won’t cover the valuation work because that’s where they perceive the risk of claims coming from. 

In general terms, the price of valuations is coming down because there’s a commoditisation where fees are going down, but costs are going up and that’s what is bringing a lot of pressures into the marketplace. On the other hand, from lenders, there’s an increase and push from them to use non-physical methods of valuation. For example, instead of sending a valuer around to a property, it can be done ‘at their desktop’ using data, an automated valuation model or some kind of predictive modelling. This kind of trend is going to continue.

How important is technology/AI in your industry? What impact is it having?

Everybody is excited about artificial intelligence (AI) and while it hasn’t made an impact in the industry yet, it will. Where in some areas there is disparity with big players and small players, AI and technology is an area where there could be a level playing field. You don’t have to be the biggest, most successful organisation, if you have some innovative AI or software, you can really compete with the biggest firms in the market. 

There is a real appetite for people to understand how that can help and drive consumers to get the best advice and how it can make surveys more efficient. There is currently a lot of manual processes in the industry that are just crying out for an AI approach to make it better. 

Do you think the industry is behind others in its adoption of AI and technology?

It has stagnated because there’s a very limited number of software providers for lenders and for valuers and it has always been quite a closed ecosystem. With AI, new software, and application programming interfaces (APIs,) you no longer have to have certain systems to be able to interact with each other. In fact, those systems might become the barrier to interacting. If you are an agile new entrant with smart software and clever tools, you might be able to get an advantage in the industry. So, while there has been some stagnation we’re on the edge of the next evolution.

How far do you see technology going in the future to support the industry? 

The market needs to embrace technology because if it doesn’t it will get left behind. If surveyors and valuers don’t find the way to use technology, they’re signing their own death warrant. Lenders and other customers, whether they are local government or social housing will need to find another way to access information and make decisions. There’s a prize to be had for people who can innovate and the people who decide they don’t want to or can’t, will ultimately lose. 

One type of technology that could be used in our market is an AI tool. For example, if you’re a surveyor or valuer and you start describing what you see – for example, cracks in a certain part of the property – the AI tool could suggest you need to check another location in the property because the type of issue is also associated with that. Using a tool like this will hopefully improve the way inspections are undertaken, and more defects can be uncovered. 

AI can also help write the reports in a more efficient and clear way, so that they’re more accessible for consumers and business to business customers.