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 been providing rating valuation advice to The Welsh Rugby Union Limited (“WRU”) and Millennium Stadium plc for many years. They were recently successful in achieving substantial reductions in the assessments of the Millennium Stadium, covering both the 2005 and 2010 rating list. These negotiated reductions yielded savings of c.£3.5m which, crucially, allows the WRU to re-invest in rugby throughout Wales. They advise the WRU across the group portfolio including the National Centre of Excellence in the Vale of Glamorgan. The valuation issues across the WRU portfolio are complex requiring a high level of understanding of the funding and finances of professional sport in Wales. Cooke & Arkwright’s experience and understanding of these issues and application to the rating valuation have yielded these substantial negotiated reductions. The WRU and the Millennium Stadium entrust our work to organisations with the required levels in experience and expertise in dealing with these complex issues. I am glad to say we have this expertise in Wales. I would have no hesitation in recommending ratepayers making use of this Welsh based expertise.

The Welsh Rugby Union Limited, Welsh Rugby Union Group