Working with you to progress valuation review recommendations

Since April I have been leading a committee of expert colleagues to implement the important reforms outlined in the Review of Real Estate Investment Valuations. The review was commissioned by the RICS Standards and Regulation Board (SRB) to future-proof practices in the public interest, and the SRB accepted all 13 recommendations.

To take the recommendations forward, I assembled the Valuation Review Implementation Committee (VRIC) made up of expertise from a wide range of firms – from small through medium to large – and covering a diverse set of valuation sectors. The committee also draws on a strong range of skills sets, including those of another professional body.  Since forming, the VRIC has published a roadmap to bring clarity on the programme and process for implementation, held an open ‘call for views’ to inform updates to the Red Book, and started preparation to consult on key reforms.

You will soon have an opportunity to feed into key valuation review proposals

The valuation review makes important recommendations, such as those around rotation and the commissioning and receiving valuation reports. I want to make it clear that we will need and proactively seek the input of valuers, their clients and all stakeholders to implement them in the best way possible. This will be progressed via a consultation on proposed changes to the Regulated Purpose Valuations section of the Red Book UK supplement, planned for late this year. I am grateful for all the feedback we received via the call for views; it is being considered by the VRIC and will inform the upcoming consultation. I encourage everyone with an interest in these recommendations to feed into the consultation, and you can sign up to be notified when it opens.  

Communication, consultation and transitional arrangements

An orderly transition to new standards and regulatory arrangements is essential, given the breadth and nature of changes the valuation review recommends. As is normal for any amendments to RICS standards, there will be a reasonable period of time between the publication date of new requirements and the date that they become effective. My committee is also developing transitional arrangements around rotation, which will be consulted on and communicated well in advance of changes coming into force, reflecting our commitment to ensuring valuers and their clients have sufficient time to implement the changes once they are agreed.

How you can be involved

The valuation review benefitted from broad engagement from valuers and clients to regulators and academics. I want our implementation of its recommendations to be shaped by as many voices as possible to make sure we deliver the best possible outcomes. In addition to having your say on the consultation in later this year, there will also be an opportunity to feed into our consultation on changes to regulatory policy and assurance in the first quarter of next year and a consultation on changes to the Global Red Book later in 2023. RICS will publish updates on the Valuation Review web hub and its social media channels using #ricsvaluationreview. You can also receive updates directly by signing up online and we will regularly refresh our published frequently asked questions.

I would like to thank my colleagues on the VRIC and the staff team at RICS for their efforts in steering the implementation programme for the valuation review recommendations so far. I look forward to wide engagement across the market to deliver them, so I very much welcome your contributions.

Richard Waterhouse

Chair, Valuation Review Implementation Committee