Professional Services News

The Royal Institution of Chartered Surveyors (RICS) has updated the UK supplement for its ‘Red Book’, which regulates the valuation profession and provides direction on valuation, approach, methodology and compliance which need to be followed. This follows an independent review of the processes and consultation by the Standards and Regulation Board, ultimately serving to strengthen public interest, transparency and reliability.

The new changes are largely around Regulated Purpose Valuations such as financial statements, including rotation of valuers, although this excludes public sector valuations which follow separate requirements. There have also been updates in relation to charity assets, minimum information requirements, general admin arrangements, land/building apportionment and treatment of purchaser’s costs.

The review also recommended expanding the use of discounted cashflow methods of valuation (DCF) being more reflective of purchaser’s considerations, such as an investment property incorporating future void periods or potential rental growth, although the use of DCF is not being mandated by the RICS. Nonetheless, additional practice information and guidance will follow in due course.

FHP Property Consultants undertake valuations for a range of purposes including accounts, pension fund, taxation, loan security and charity disposals. Red Book valuations are carried out by RICS Registered Valuers who will have undertaken a rigorous assessment process. If you are considering updating valuations of your property assets then please do get in touch with the team.

For further information please contact Tim Richardson BSc MRICS at FHP Property Consultants 01332 317277 or email timr@fhp.co.uk.

ENDS

November 2023

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