RICS moves forward with Valuation Review implementation

• RICS Standards and Regulation Board (SRB) member, Richard Waterhouse, has been appointed to lead a dedicated committee, reporting to SRB, charged with implementing the Valuation Review’s recommendations
  
• Investment and valuation community asked to submit feedback as RICS begins to implement Valuation Review recommendations
  

Senior chartered surveyor, Richard Waterhouse FRICS, has been appointed to chair an expert sub-committee that will oversee implementation of the recommendations of the Valuation Review, on behalf of RICS’s Standards and Regulation Board (SRB).

A member of the Standards and Regulation Board at RICS, the independently-led body responsible for setting RICS’s standards and regulation framework, Richard has 28 years working as a chartered surveyor in the public sector. Richard is currently assembling a team of experts that will work with him and the Institution to consult and develop specific reforms to valuation, in line with SRB’s commitment.

Richard Waterhouse, Chair of the Valuation Sub-Committee, said:

“The Valuation Review is an extensive and thorough examination of the way commercial property works around the world – and its findings have shown that reforming part of the valuation practice across our education, regulation and standards will be vital for the sector to remain trusted and relevant.

“We are taking action to implement all the recommendations and I thank colleagues on the SRB and at RICS for asking me to lead this important work.”

As indicated by RICS in its initial response, the implementation of the Valuation Review recommendations will be brought forward in stages, with an initial focus on standards and practice issues, with necessary changes to the RICS’s regulatory approach following.

As a first step in consulting on implementation, valuers and their stakeholders are now being asked to submit their views to inform a major update to the valuer’s Red Book in the UK.

The ‘call for views’ published today (Mon 11 April) which is seeking feedback from professionals and the investment community on the implementation of a number of the Review recommendations, which seek to future-proof valuation practice and improve confidence in valuations upon which third parties rely.

This initial engagement with stakeholders focuses on proposals to introduce mandatory rotation of valuation firms, as well as the introduction of new governance arrangements for the commissioning and receiving of valuation reports – which were key recommendations from Peter Pereira Gray’s report and stand to better maintain the impartiality of valuers and the advice provided to those who commission them.

Ben Elder, Head of Valuation Standards at RICS, said:

“This is a really important step in integrating the recommendations from the Pereira Grey Report and the updating of the Red Book in the UK.

“We need feedback from the widest possible audience to achieve an appropriate balance between the parts of the Red Book that impact all valuations carried out in the UK and those that fall within the permit of the Independent Valuation Review. “

The call for views follows the RICS accepting the recommendations of the Valuation Review and its commitment to implement them in full.

-ENDS-

NOTES TO EDITORS

ABOUT RICHARD WATERHOUSE FRICS

Richard is a Chartered Surveyor by career, joining the RICS Standards and Regulation Board in March 2020. Richard has extensive public sector experience within the land & property markets, developing and driving policy across residential, commercial and infrastructure. He has served across several departments including, Communities & Local Government, Cabinet Office, HMRC and Treasury and in areas including litigation, policy development, risk & assurance, and introduction of new legislation. He also maintains a keen interest in the historic property, environmental conservation, lithics and kayaking.

More widely, he holds judicial office as a Valuer Chairing London, on the First Tier Tribunal (Property Chamber), dealing with residential disputes, and teaches valuation at the University College of Estate Management.

ADDITIONAL INFORMATION

The ‘call for views’ will run until 20 May 2022 and can be accessed here.

It covers proposed changes to UK valuation standards, arising from the Valuation Review Recommendations relating to valuer rotation and commissioning of valuation reports.

RICS is also using the call for views to seek feedback on the relevance of the a number of other areas of potential current Red Book and how it applies in the UK and will separately take on board suggestions for updating it so professionals can continue to respond to the needs of clients.

The evidence gathered through this ‘call for views’ will be supplemented by round tables and workshops that will further inform the changes needed to the RICS Valuation Standards which again will be subject to the normal public consultation process later in the year (2022).

Further consultation with RICS professionals and stakeholders on the remaining recommendations of the Valuation Review – including a move towards a DCF model of valuation – will take place shortly.

About RICS

We are RICS. Everything we do is designed to effect positive change in the built and natural environments. Through our respected global standards, leading professional progression and our trusted data and insight, we promote and enforce the highest professional standards in the development and management of land, real estate, construction and infrastructure.

Our work with others provides a foundation for confident markets, pioneers better places to live and work and is a force for positive social impact.

FOR MORE INFORMATION:

John Bayliss: jbayliss@rics.org

Rebecca Hunt: rhunt@rics.org