Material Valuation Uncertainty Clauses - update August 2020

12 August 2020

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The RICS Material Valuation Uncertainty Leaders Forum (UK) meets regularly to discuss material valuation uncertainty in UK real estate markets.

The consensus they reached last week (finalised 04 August) means that reporting material valuation uncertainty may no longer be appropriate for a number of additional property uses in Wales:

 

  • All offices;
  • Self Storage facilities;
  • All healthcare, excluding day nurseries;
  • C3 and C4 residential property and land (including sui generis Houses in Multiple Occupation with more than 6 residents) in England and Wales, excluding only those cases with asset and/or locality-specific market issues that merit a declaration of material valuation uncertainty, at the discretion of the valuer.

 

This suggests that transactional activity levels are now at a sufficient level to provide valuers with contemporaneous comparable evidence.  It is still up to the valuer to make a judgement in respect of each property based upon the specific circumstances.

Cooke & Arkwright have provided independent property consultancy services to the College for a number of years. This advice has included property valuations and negotiation around property acquisition and disposal, rent reviews and the preparation and negotiation of the College’s farm business tenancy agreement. The College has consistently received an excellent and professional service from Cooke & Arkwright and their valuable support to the College is recognised and appreciated.

Bob Bates, Director, Coleg Gwent