RICS publishes new guidance on cladding and valuation - Webinar on 16 December 2022
Following the consultation earlier this year, as RPC previously reported here, the Royal Institution of Chartered Surveyors ("RICS") has now published new guidance on cladding and valuation. The guidance aims to provide guidance to valuers undertaking valuations for secured lending purposes of domestic residential flats, within residential blocks of 5 or more storeys or 11 metres or more in height.
RICS consulted on the proposed professional standard between 3 October 2022 and 31 October 2022. The public and professionals were consulted on the proposed new guidance, which is intended to provide clarity and consistency in the approach a valuer should take in conjunction with their lender client instructions. RICS received 400 written responses to the consultation, most of which were supportive, particularly from the industry, professional and government stakeholders. A full analysis of those who responded and the answers to the questions asked in the consultation can be found here.
As a result of the consultation responses, RICS has amended some of the assumption and special assumption criteria. For example, it has: i) provided clarity on the application of the assumption regarding impact on amenity and temporary works, relating this back to individual lender policy; and ii) has amended the proposed eight-year special assumption for remediation works to be completed ‘in an appropriate timeframe from the valuation date’, to provide the flexibility lenders and valuers have requested, reflecting the individual circumstances of block remediation, whilst providing a consistent approach.
RICS recognises that the valuation approach of properties with cladding is part of a wider complex situation. RICS has confirmed that it will continue to work with DLUHC, lenders and other industry representatives to encourage and where possible facilitate clarity and consistency in the provision of block information. The guidance will be reviewed regularly to ensure it remains fit for purpose in light of lending and valuation best practice and the continued implementation of the Building Safety Act 2022.
You can access the guidance here.
Finally, Nigel Sellars of the RICS will be hosting a webinar on Friday 16 December at 10am to discuss a suggested practical implementation of the guidance. To sign up, please click here.