Description
The session outlines significant updates to UK valuation standards, effective May 2024, designed to elevate transparency, documentation, and trust in property assessments, with a strong focus on ESG, residential markets, and regulated purpose valuations.
Key Points:
- Major Updates to Valuation Standards (Effective May 2024)
The RICS UK National Supplement and Red Book have been revised to improve valuation quality, introduce clearer compliance for residential and regulated purpose valuations, and respond to market concerns, especially in the build-to-rent sector and secured lending. Firms must update practices and respect new client engagement limits (10 years for firms, 5 for individuals). - Emphasis on ESG, Documentation & Independence
New guidance reflects a greater focus on ESG considerations, particularly energy efficiency and sustainability. Valuers are urged to maintain robust documentation, clear rationale, and independence from client influence. Discounted cash flow models are increasingly used for residential and investment property valuations. - Valuation Reform Driven by Legislation and Sector Growth
Legislation like the Leasehold and Freehold Reform Bill is shifting valuation models by redefining the relationship between leaseholders and freeholders, impacting long-term value assumptions. The growing complexity of residential markets necessitates clearer guidance, including interactive and accessible Red Book versions to support better practice.
Learning Objectives:
- Understand the May 2024 updates to UK valuation standards and their implications for regulated purpose and residential valuations.
- Apply best practices in valuation reporting, including independence, detailed documentation, and transparent methodologies.
- Incorporate ESG considerations and prepare for upcoming legislative changes (e.g., leasehold reform) affecting long-term property value assessments.
