Property valuation in 2019 has proven to be a minefield. With a ‘prime’ retail market in continuing freefall starkly contrasting with the strong local industrial sector. To the untrained eye it can be difficult to know which way to turn. Add in to this melting pot the dreaded ‘B’ word and this political limbo and macroeconomic instability creates a soup of uncertainty sure to leave a bitter taste in the mouth.
In these uncertain times the Royal Institution of Charted Surveyors (RICS) have published a guidance note earlier this month (Oct 2019) titled Comparable evidence in real estate valuation. Whilst to many of our fellow professionals this will sound a lot like ‘sucking eggs’ it deals with the various sources of evidence, the quality of information and how to deal with a shortage of quality comparables and the inherent valuation uncertainty this creates.
Whilst valuers have been rightly distracted dissecting current trends in a fast moving market, the Minimum Energy Efficiency Standards (MEES) have now become firmly embedded in the psyche of the profession, under which all new lettings are required to achieve an Energy Performance Certificate (EPC) rating of A-E. The requirements tighten up in April 2023 when all lettings (irrespective of when the lease started) will have to meet the same threshold. If this did not give valuers and landlords sufficient food for thought the latest Government consultation is suggesting that the threshold is raised to a B rating by 2030. If this does come to pass, then property owners across the land are going to be faced with a major 10 year challenge.
All these current issues facing the property markets serve as a timely reminder to source high quality valuation advice when the occasion calls. At Underwoods we have extensive experience throughout the commercial and residential sectors, engaged for a range of purposes from secured lending to pension fund valuations to expert witness reports for Court.
Posted By: Charles Church
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Valuation in Uncertain Times
Property valuation in 2019 has proven to be a minefield. With a ‘prime’ retail market in continuing freefall starkly contrasting with the strong local industrial sector. To the untrained eye it can be difficult to know which way to turn. Add in to this melting pot the dreaded ‘B’ word and this political limbo and […]
