RICS recommends lifting of Material Valuation Uncertainty clauses

9 September 2020

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The Material Valuation Uncertainty Leaders Forum set up by the RICS have today issued an update recommending a general “lifting” of Material Valuation Uncertainty clauses for “all UK real estate, excluding some assets valued with reference to trading potential”.

A Material Valuation Uncertainty declaration is applicable when there are sharp and unpredicted shocks to a market leading to a temporary suspension of market activity. The RICS recommended their use on 17th March 2020 and they were only expected to be applicable for a relatively short term.

For properties where there is little transactional comparable evidence, other indicators should be considered.

As I have noted in previous updates on this subject, it is still down to the valuer to consider each property individually and for some properties the valuer might still believe it is appropriate to include a Material Valuation Uncertainty clause.

Blake Morgan committed to 29,000 sq ft office in the exciting Central Square development. We retained Ben Bolton and his team some time ago to advise and appraise options in the lead up to this significant move of our Cardiff Office. The business is extremely pleased with the outcome and Ben's negotiations and attention to detail was a major part to this.

Philip Jardine, Blake Morgan LLP