Kent Reliance has changed its valuation criteria following economic uncertainty after the EU Referendum.

The main changes are to its valuation process in an effort to tighten its lending criteria, during an unpredictable time for the housing market.

The specialist buy-to-let lender has reduced the amount of time a valuation can be relied on significantly, from six months to four months. The change came about following advice from its valuers and guidance from the Royal Institution of Chartered Surveyors (RICS).

More detail needed on high value homes

Alongside shorter valuation validity periods, the lender is insisting all applications which exceed 50% loan-to-value (LTV) for any property valued at more than £2m be submitted with a detailed survey called a Long Form Valuation. This requires a full internal inspection and an assessment of factors such as sales evidence, market direction and market sentiment.

A spokesman for the lender said: “In the main, these changes affect properties in London and the south east, where we specialise. The Long Form report provides a more comprehensive assessment of the security.”

The final change being introduced by the lender is an LTV cap of 75% for loans of less than £100,000. Kent Reliance said this reflected the potential for price volatility in the lower end of the market.

Andrew Montlake, director at brokerage, Coreco, said: “In today’s environment, you can understand why lenders will want to take a little more care when valuing the more expensive properties which can be subject to more sudden price swings. It is important for brokers and clients that valuations are as accurate as possible and whilst I don’t actually think we will see any large price falls, caution seems to be the sensible way to go.

“We do need to avoid entering in to an overall negative view where properties and values are concerned as the reality is that supply and demand will continue to keep prices level.”