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.

Mansford has expanded its investment portfolio over the last few years. Over this time Andrew West has provided us with a full rating valuation service which has involved giving a view on liabilities prior to acquisitions, as well as conducting negotiations with Valuation Officers on our UK estate. The portfolio includes a wide range of properties from shops, offices and pubs to major leisure schemes. He has been particularly successful in mitigating our liabilities to empty property rate, which has been an issue on acquisition prior to implementing our development and letting strategy. I have no hesitation in recommending Andrew's expertise in rating valuation for all property types. The profile of property within his portfolio and the successes achieved are testament to his position as an extremely accomplished rating practitioner.

Leopold Hall, Partner, Mansford LLP