Independent review, established by the RICS Standards & Regulation Board to maintain confidence in the valuation practices of RICS professionals are seeking evidence around four principal areas that form the foundation of commercial property valuation – the methodology behind valuation, identifying risk, maintaining independence and how value is measured.
“Valuers and the users of valuations are working with significant structural shifts in investor sentiment and occupier demand for real estate which is changing the marketplace and public and regulatory expectations of valuers. It’s why I have launched a Call for Evidence, setting out the context for the review and the specific areas that I would welcome stakeholders, consumers and industry to respond to,” said Peter Pereira Gray, Independent Chairman of the Valuation Review.
Some of the review questions include whether new, more prescriptive rules are needed and whether the existing Red Book remains the right global framework to deliver quality valuation services.
Views are also being sought on specific ways a valuer’s objectivity and independence in the marketplace can be protected and enhanced, which would allow consumers and stakeholders to continue having full confidence in the advice provided.
“I have also appointed an expert advisory group to bring a wide range of experience and challenge to the review from a variety of different perspectives,” he said.
With the marketplace continually evolving to respond to rapidly changing consumer trends, the ‘review’s recommendations could see updates being made to the Red Book – an agreed set of international rules and ethical principles applied to the sale and purchase of the commercial property.
To assist with gathering evidence and provide further advice, a panel of experts from across the market has been convened.
The review will consider the ability of valuers to keep pace with market changes, including changing occupational trends and their impact on investment in real estate and concerns over the independence of valuers from their clients when reporting on investment performance among others.