Demand from small and medium-sized enterprises for valuations has climbed sharply this year, according to Landwood Group, as businesses struggle to secure funding in an increasingly cautious market.
The Manchester-based chartered surveyors said appetite for valuations has risen since January as traditional lending routes narrow and mainstream banks become more risk-averse. Despite a government review into SME finance, many firms and lenders maintain that conditions remain as challenging as ever.
Helen Jude, partner at Landwood Group, said the shift is visible across the funding process. “There’s nervousness on both sides, businesses trying to secure finance and lenders under pressure to tread carefully. Everyone’s caught in the middle and it’s making things slower and harder for everyone involved,” she said.
With high street banks stepping back, specialist lenders and bridging finance are increasingly becoming the first port of call. Jude said lenders want to support growth but are scrutinising yields more closely, downgrading valuations and applying extra caution.
“And these aren’t businesses rushing out to buy brand new assets. This is about refinancing, renewing or rethinking how to structure deals just to keep operating,” she added.
CASH FLOW CHALLENGES
The slowdown is affecting cash flow, with deals taking longer to close and applications facing multiple rounds of credit checks. Valuers are seeing their work reassessed more frequently, with reports carried out just six months earlier being revisited as conditions change.
“As valuers, we’re seeing our work scrutinised more closely than ever,” Jude said. “Now that lenders need every potential risk covered off, the reporting is more laborious than it’s ever been for both sides.”
Although some firms are exploring artificial intelligence and technology to streamline the process, Jude believes a personal approach remains vital in a market shaped by relationships and risk.
“Lenders need to know they can trust what we’re putting forward and SMEs need someone who can help them navigate what is, right now, a really tough environment,” she said.
The comments come despite the Bank of England’s decision to cut interest rates on 7 August, with economic uncertainty and global volatility still weighing heavily on sentiment.
Landwood, which provides valuations for refinancing, secured lending, disposals and restructuring, is expanding its team and recruiting additional surveyors to meet the rising demand. Jude said the difference between a deal completing or falling through often comes down to the expertise and understanding of what lenders require.
The firm expects the trend towards greater caution and longer deal times to continue through the second half of the year.
