In today’s property market, we’re surrounded by data. Comparable sales, Land Registry records, property portals and sophisticated market analytics have transformed the way we assess residential property values. With information more readily available than ever before, it’s easy to assume that the numbers tell the whole story.
They don’t.
The Role of Comparable Evidence in Development Valuations
Comparable evidence remains the cornerstone of any robust valuation. It provides objective evidence of where the market has been and what buyers have been prepared to pay, enabling valuers to benchmark pricing, analyse trends and form an evidence-based opinion of value.
However, whilst data tells us what has happened, it doesn’t always tell us what is happening. That’s where local agent feedback continues to play a vital role.
Why Local Agent Feedback Still Matters
As part of my role valuing residential development schemes across the UK, I regularly speak with local estate agents to gain a real-time understanding of the markets in which developments are proposed. These conversations aren’t intended to replace market evidence; rather, they provide valuable context that helps explain the story behind the data.
Estate agents are at the forefront of the market. Every day they’re conducting viewings, negotiating sales and speaking directly with buyers. They understand local sentiment in a way that spreadsheets and market reports simply cannot.
Key Questions Local Market Intelligence Can Answer
These conversations often provide insight into questions that historic data alone cannot always answer, yet which can significantly influence both value and, perhaps more importantly, saleability:
- Who is actively buying in the local market?
- Which buyer groups are driving demand?
- Why are some properties selling quickly whilst others remain available?
- What specification and features are today’s buyers expecting?
- Are developers pricing in line with current market sentiment?
- Are incentives becoming more common to secure sales?
Why Context Matters in Development Valuations
One of the key principles of valuation is recognising that no two developments are exactly alike. Two schemes may appear similar on paper, with comparable house types, accommodation schedules and even comparable sales evidence. However, local market dynamics can produce very different outcomes.
Anonymised discussions with agents regularly highlight factors that aren’t immediately apparent from transactional data alone. For example, a competing development may be releasing additional phases into the market, buyer demand may have shifted towards smaller family homes, or purchasers may now be placing greater emphasis on energy efficiency, home offices or outside space.
These are subtle changes that can influence both pricing strategy and sales rates, long before they become evident through completed transactions.
Why Local Market Intelligence Matters in Development Finance
Within development finance, our role extends beyond simply considering what a completed property may be worth. We also need to understand whether those values are realistically achievable within the anticipated sales period. This is where local market intelligence becomes particularly valuable.
When considered alongside comparable evidence, agent feedback helps build a more rounded picture of buyer demand, pricing confidence and likely sales absorption. It provides an additional layer of market insight that supports both valuation accuracy and lending decisions.
Importantly, it should never override objective evidence. Equally, relying solely on historic transactions without understanding current market conditions can overlook important changes in buyer behaviour. The strongest valuations are those that successfully combine both.
A Balanced Approach: Combining Data and Local Insight
Data will always remain at the heart of the valuation process, and rightly so. But property has never been a purely statistical exercise.
Behind every comparable sale are buyers, sellers and local market conditions that continue to evolve. Speaking with those who interact with the market every day helps ensure valuations are not only evidence-based, but also grounded in the realities of today’s marketplace.
For me, that’s where the real value of local agent feedback lies. It doesn’t replace the numbers, it helps explain them.
Share Your View
If you’re a developer, broker, surveyor or estate agent, how much weight do you place on local market intelligence when assessing a development opportunity? Has its importance increased in today’s market?
– Justin Friend, Head of Valuations of BLG