Cladding and Valuation: Important RICS guidance under consultation until 31 October 2022 – have your say!
The consultation is part of RICS' plan to introduce a new professional standard for valuing properties in multi-storey, multi-occupancy residential buildings with cladding. This will take the form of an RICS-approved technical guidance note, with the objective of supporting an effective homebuying market.
The Consultation responds to recent, extensive legislation which has included the protections created for qualifying leaseholders; the Government Fund for remediation works; new legislation on remediation orders; and other provisions of the Building Safety Act 2022.
The RICS guidance aims to provide consistency and transparency in the valuation approach, supporting the valuer in their assessment of value and the appropriate use of assumptions and special assumptions. This document is intended to help valuers undertaking valuations for secured lending purposes on domestic residential flats, within residential blocks of 5 or more storeys or 11 metres or more in height.
The proposed guidance sets out the anticipated common scenarios valuers are likely to experience in the near term, with valuers expected to apply the principles set out in the document alongside their professional judgement.
The proposal comes after significant engagement with many key stakeholders such as valuers, insurers and lenders. However, RICS is seeking further engagement regarding views and evidence as to whether the proposal will provide the clarity and consistency in valuation approach it seeks to achieve. It is seeking feedback from a wide range of stakeholders including prospective buyers, as well as relevant professionals and industry bodies in order to inform the final guidance. Be sure to have your say.
Once the consultation has been completed, RICS aims to have the guidance published this year.
The consultation closes at 11.59 pm on 31 October 2022.
You can access the consultation here.
Authors Alex Anderson, Kat Cusack & Faye Cottrell-Hopton