The property market is increasingly adopting automated valuation models (AVMs), with speed, cost and the removal of ‘human errors’ among the driving factors, but adoption also comes with challenges.
This paper represents a snapshot of the current landscape of AVM adoption across all asset types and follows on from RICS’ AVM roadmap, published in July 2021, which engaged with stakeholders in all major world markets.
Explore the key standards which our professionals work to in the valuation sector.
Our professionals provide valuation services across many asset classes and work to the highest global standards that are underpinned by the regulatory scheme Valuer Registration.
RICS also provides valuation oversight and assurance to ensure that trust in the sector is upheld and improved, particularly through the reduction of risk and the strengthening of accountability. Find out more here.
RICS Valuation technical professional standards and practice information programme
A look at the professional standards and practice information documents RICS are looking to produce in the Valuation sector over the short and medium-term, including:
- How RICS propose new or updated standards
- What topics RICS are engaging on in valuation
- How you can engage with RICS
Popular valuation standards & guidance
Valuation Standards
This professional standard is primarily directed at those providing valuation services within or subject to EU jurisdictions for bank-lending purposes, in particular where the provision of a mortgage lending value (MLV) is requested.
This standard is currently being updated further to input from RICS members and external stakeholders such as industry bodies, government, pub tenants and owners.
This professional standard discusses the use of comparable evidence in the valuation process.
The purpose of this UK guidance note is to draw attention to matters relevant to the use of the depreciated replacement cost (DRC) method of valuation.
The content on this page encourages the appropriate consideration of Discounted Cash Flow (DCF) models in valuation. It is the valuer's decision, based on their professional judgement, which valuation approach, method and model is used. Use of DCF is not mandatory.
RICS is aware that structural changes are occurring in many property markets globally, which have the potential to significantly impact property values. These changes are being driven by a number of geo-political issues, as well as global inflationary pressures (leading to higher interest rates) and recent failures/stresses in banking systems, which have increased the potential for reduced credit availability. In addition, the world is facing post-pandemic behavioural adjustments.
This professional standard provides practical advice, guidance, consistency and clarity to RICS members in the UK on the interpretation and application of Existing Use Value (EUV) valuations of owner-occupied operational properties in public sector valuations when used for financial reporting purposes.
This professional standard draws professionals’ attention to specific issues that arise in farm stocktaking valuations, for inclusion in financial statements that are prepared in accordance with UK GAAP.
The Basel Committee for Banking Supervision (BCBS) included revised criteria for the “prudently conservative valuation” of commercial and residential real estate collateral in the update of the Basel Accords commonly known as “Basel 3.1”. Regulators in the EU are close to finalising amendments...
Business valuation providers and users benefit from common understanding of terms with clearly established meanings and consistent application throughout the profession.
This Professional Standard is an update to an RICS Information Paper published in 2012, responding to a House of Commons Science and Technology Committee published report - Japanese knotweed and the built environment and a Department of Environment, Food and Rural Affairs (Defra) investigation into Japanese Knotweed - questioning the current approach to the assessment of risk, and by extension, impact on value, of Japanese Knotweed on the built environment.
RICS are currently reviewing leasehold reform valuation guidance for members. Valuers are reminded that they need to be aware of the latest market and legal position prior to undertaking work related to this area.
The public sector includes central government, local government and public corporations.
There are many RICS valuation professionals who are employed both internally by public sector organisations and by external consultancies, who specialize in providing independent, impartial valuation and professional property advice across the entire public sector, and where public money or public functions are involved.
This Practice information paper has been developed by an expert group comprising USA based members with expertise of USA and global valuation standards, and provides an overview of the practical considerations and differences RICS members should be aware of if they want to undertake valuations in the USA.
RICS responds to the Prudential Regulation Authority’s near final policy statement relating to prudent value as part of Basel 3.1 implementation in the UK. Read the response here.
This code of practice has been jointly adopted by the Royal Institution of Chartered Surveyors (RICS), the Institute of Revenues, Rating and Valuation (IRRV) and the Rating Surveyors’ Association (RSA).
RICS has engaged with senior academics, the IVSC and TEGoVA on this important area of change in the valuation of real estate for secured lending purposes. The report focuses on plans to implement Basel 3 in Europe through changes to the Capital Requirements Regulation, but the findings have global implications.
RICS has been engaging with stakeholders in relation to leasehold reform matters contained in the 7 November Kings Speech and the subsequent Government consultation: Modern leasehold: restricting ground rent for existing leases. We have also been monitoring related UK Parliament activity.
There are many RICS valuation professionals who are employed both by private and public sector organisations of various sizes who specialize in providing independent, impartial residential property valuation related advice. This dedicated page brings together useful information for those involved in residential property valuation matters.
The Red Book is issued by RICS as part of our commitment to promote and support high standards in valuation delivery worldwide. The publication details mandatory practices for RICS members undertaking valuation services. It also offers a useful reference resource for valuation users and other stakeholders.
This global professional standard provides a practical framework for delivering on sustainability and ESG investigation, and reporting requirements in professional valuation advice.
This professional standard is intended to be applicable for Contractor’s Basis rating valuations. The purpose of this document is to aid the understanding of the Contractor’s Basis for the general rating practitioner while providing a common framework of the basis for the more experienced practitioner.
A look at the professional standard, supporting information and frequently asked questions from RICS in the Valuation sector.
The professional standard identifies three types of conflict: conflicts between parties, own-interest conflicts and confidential information conflicts. It sets out the circumstances where informed consent may be used to avoid a conflict.
This professional standard has been prepared with regard to valuation practices in the UK. It is intended to assist the valuer in highlighting the main factors that affect the valuation of commercial renewable energy installations and to outline the valuation process and approaches.
The purpose of this updated Professional Standard is to provide sufficient background information and guidance to ensure consistency in the assessment of residential investment properties to include single residential units, houses in multiple occupation and multi-block units.
Including a glossary of relevant terms, this note offers guidance for valuers who are instructed to provide market value, or market rent, for properties used as data centres.
The aim of this Professional Standard is to guide the valuer in the approach to development property valuations.
The valuation of residential property for mortgage purposes is well understood, but the new-build sector is constantly evolving and becoming increasingly complex. The aim of this professional standard is to assist RICS members in achieving a consistent approach to the valuation of new-build property.
This professional standard discusses the valuation of intellectual property (IP), a subset of intangible assets. Its purpose is to expand on the International Valuation Standards (IVS) and RICS Valuation – Global Standards (Red Book Global Standards) in order to clarify the legal, functional and economic characteristics of IP that should be considered and reported on in an IP valuation.
Aims to inform the valuer’s approach to the valuation of land for sites in Scotland where there is a requirement to provide affordable housing or where the provider of affordable housing is seeking grant finance from the Scottish government.
This guidance note aims to assist practitioners in the approach to the valuation of affordable housing development land. The focus is on the valuation of land for housing and flats but the principles are broadly adaptable for other types of affordable housing, such as special needs and sheltered housing accommodation.
We are proposing an updated standard under the new title Valuation of licensed leisure property including public houses, bars, nightclubs and restaurants.
This guidance note is concerned with the valuation of surgery premises, including all medical centres and surgeries occupied by doctors and other similar practitioners for medical or health services.
This professional standard is a global revision of the 1st edition published in 2011. It identifies additional matters that valuers need to consider when valuing natural resource wasting assets, such as mineral deposits, landfill and waste disposal sites.
This guidance note is intended to support valuers undertaking valuations for secured lending purposes on domestic residential blocks of flats in the UK.
This professional standard is intended to support valuers undertaking valuations for secured lending purposes on residential leaseholds in England and Wales.
This Professional Standard applies to rural property in the UK only. For the purposes of this guidance, rural property means commercial farms and farmland, all forms of rural landed estates and residential property in the countryside with land attached.
Valuation of woodlands and forests 2nd edition empowers professionals undertaking valuations of these assets to consider the continuously evolving array of complex factors which can impact their value.
This professional standard gives guidance on the general approach to valuation that should be adopted for the build-to-rent part of the residential investment sector and recognises that – reflecting market practice – the principal basis should be an income-driven one.
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