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.

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