Hometrack, together with two other European AVM (Automated Valuation Model) providers, Calcasa and Eiendomsverdi, has launched a pan-European initiative aimed at promoting and standardising the usage of AVMs across Europe.

The European AVM Alliance (EAA) consists of Hometrack, the leading supplier of AVMs in the UK; Calcasa, the major supplier of AVMs in the Netherlands and Eiendomsverdi, which operates the sole AVM in Norway.

The EAA is looking to extend its membership across Europe. The alliance will meet formally three times a year with a rotating presidency. Hometrack will hold the presidency in this, its first year.

Andrea Biguzzi, director of strategy at Hometrack said: “From speaking to our clients within the mortgage lending industry, as well as other stakeholders, such as the investor community, the rating agencies and financial regulators, we know that there is a real need across Europe for the increased transparency and better risk management that AVMs can deliver.

“We see real benefits to be gained by clients accessing AVM services that adhere to consistent quality standards, irrespective of the location in which they are provided.”

Evert Van de Wauwer, CEO of Calcasa, said: “The foundation of the EAA reflects the growing importance of AVMs in the capital markets. Working together as a team the alliance represents a considerable force in the further development of advanced AVMs and their applications across Europe.”

Sigmund Aas, partner at Eiendomsverdi, added: “Norway has seen a significant growth in the use of AVMs over the last five years – today they are being used by almost every bank in the country. This is indicative of what’s happening across Europe as a whole. The EAA brings together some of the best operators working in the AVM space today. Their joint aim is to make it easier for those business involved in residential property to operate. We are delighted to be a founding partner of this enterprising alliance.”