Real estate values make up at least 30% of the world’s wealth. Changes in demand and supply dynamics can happen rapidly, making it crucial for property owners to know the accurate value of their assets.
While the UK property market is among the most transparent globally, it can be challenging for owners to gather and analyse transactional evidence effectively. This is where professional property valuers come in. They possess specialist knowledge of local markets and the expertise to collect and analyse sales and letting evidence. As a result, they can accurately value real estate assets and stay updated on market trends.
Since 2014, the Royal Institution of Chartered Surveyors (RICS) has operated a Registered Valuer Scheme, requiring annual returns for renewal. RICS has regulated valuations since 1974, following the first real property crash in the UK. Since 1996, RICS members and firms must follow mandatory Professional Standards when conducting valuations; both members and firms are regularly audited by RICS to demonstrate full compliance
Reasons for requesting valuations include:
- Bank lending to assist in a purchase or secure a new loan against the property
- Pension planning, particularly through self-invested personal pensions (SIPPs), which offer tax advantages
- Disposal purposes
- Financial and tax planning
- Inclusion within an entity’s balance sheet as heritable assets
- Inheritance Tax and Capital Gains Tax
- Compulsory purchase
- Rent reviews
- Commercial and matrimonial disputes
