Document downloads - Valuation practice/methodology
Available downloads
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Inspection valuation checklist
This is a generic checklist that can be used for commercial, office and industrial properties.
The checklist is provided as a sample only. It is the user's responsibility to check and adapt it as necessary to suit the particular instruction and prevailing circumstances. -
Loan security valuation acknowledgment letter sample
This suggested letter provides a framework within which to tailor a loan security valuation acknowledgment for a particular case.
This letter combined with the Standard Terms of Business for Valuations needs to cover the requirements of the minimum terms of engagement as set out in the Red Book.
This document template is provided as a sample only. It is the user's responsibility to check and adapt this as necessary to suit the particular instruction and prevailing circumstances. -
Standard terms of business for valuations
Most firms who undertake regular valuation work have prepared standard pro formas for valuation contracts. There are a number of variations in use.
This template will help valuers to draw up contractual documents to meet the needs of their organisations. Valuers need to take into account its appropriateness to their business and the particular instruction.
This document template is provided as a sample only. It is the user's responsibility to check and adapt this as necessary to suit the particular instruction and prevailing circumstances. -
Terms of engagement acknowledgement letter
There are usually a range of letter formats referring to the terms of business and the valuation procedure and assumptions. Such letters of acknowledgement deal with the remaining matters required by Red Book to be dealt with in the contract, with these commonly varying from job to job. They must include a reference to all the minimum terms listed in Red Book with particular care being taken to make the necessary disclosures. The acknowledgement letter will take precedence over the 'standard' terms, but it may still be prudent to modify the standard clauses if they directly contradict any element of the service as expressed in the acknowledgement letter.
It is not possible to devise a standard letter, because every valuation commission depends on its specific circumstances – this sample gives an indication of how the letter could be drafted.
This document template is provided as a sample only. It is the user's responsibility to check and adapt this as necessary to suit the particular instruction and prevailing circumstances. -
Asbestos
Published May 2021
Effective from 1 August 2021
Reissued October 2022
The widespread use of asbestos has implications for property professionals working in all sectors and can impact on all stages of a building’s life cycle.
This professional standard contains a comprehensive overview of the legislation and industry guidance that govern the complex subject of asbestos. It provides guidance on the dangers asbestos poses to health and businesses, and sets out best practice advice to assist property professionals in complying with the regulations and implementing an effective management plan to ensure that they do not put themselves or others at risk.
The standard is not intended to advise members specially in the undertaking of asbestos surveys. Guidance on such surveys is set out in the HSE publication HSG264 Asbestos: The survey guide.
This document was reissued in October 2022 as a professional standard. It had previously been published in May 2021 as a guidance note. The regulatory requirements remain the same and no material changes have been made to the document. -
Code of measuring practice
Published: September 2007
Reinstated: 23 January 2018
Effective from: 23 January 2018
Code of measuring practice, 6th edition was reinstated on 23 January 2018 after publication of RICS property measurement, 2nd edition.
The 6th edition of the code became effective globally from 18 May 2015 when it was incorporated into the first professional statement, that for offices. -
Contamination and environmental matters: property observation checklists
These property observation checklists from the RICS guidance note Contamination, the environment and sustainability: Implications for chartered surveyors and their clients. They can form the basis for research, and for compiling a record of methodical inspection.
These checklists are provided as a sample only. It is the user's responsibility to check and adapt them as necessary to suit the particular instruction and prevailing circumstances. -
Contamination, the environment and sustainability: Implications for chartered surveyors and their clients (ARCHIVE)
This document has been archived and is available on isurv for information purposes only.
The challenges presented by contaminated land and environmental issues, such as the flood risk caused by climate change, and the need to live in a more sustainable way mean that the demand for best advice has never been more important. Surveyors are uniquely placed to provide this advice to clients in all property sectors.
This guidance note aims to support and guide the professional activities both of those who are already highly proficient in this area and also those who are less experienced.
This publication was reviewed and a new standard was published in 2018: 'Environmental risk and global real estate'. -
Reinstatement cost assessment of buildings
This publication is intended as a guide for surveyors who carry out reinstatement cost assessments of buildings.
The guidance note provides detailed recommendations on: the manner in which assessments should be approached; the nature and extent of the information to be collated;
the manner in which this information should be processed; and how the assessment should be calculated and submitted.
The 3rd edition takes effect from 1 June 2018.
Previous edition(s) are provided for information purposes only. -
Capital and rental valuation of fuel stations (ARCHIVED)
This document has been archived and is available on isurv for information purposes only.
Fuel stations are among those types of property generally referred to as 'trade-related property'. They are normally bought and sold having regard to their trading potential. Guidance on the valuation of individual trade related properties in the RICS Red Book considers the criteria to be adopted by valuers when assessing the value of an individual trade-related property.
It relates to a wide range of trade-related property, including fuel stations. The terms defined in that guidance are used in this information paper, which deals with its application to the valuation of fuel stations, including those that are allied to convenience stores or are part of more complex properties such as motorway service areas, where it is assumed that trading will continue. It has been written specifically with regard to the law and practice in England, Wales and Scotland. -
Capital and rental valuation of hotels in the UK (ARCHIVED)
This document has been archived and is available on isurv for information purposes only.
Previously referred to as Valuation Information Paper (VIP) 06, the 2nd edition information paper focuses on a specific group of trade related property, namely hotels. Although it is not intended to be fully comprehensive, it considers the general approach to be adopted for the capital and rental valuation of hotels in the UK, commenting on the different valuation methodologies and the practical approach to the assembly and interpretation of relevant information for this purpose. -
Valuation of rural property
Published July 2019
Effective from 1 July 2019
Reissued October 2022
This professional standard applies to rural property in the UK only. For the purposes of this guidance, rural property means commercial farms and farmland, all forms of rural landed estates and residential property in the countryside with land attached.
This professional standard is primarily intended to remind registered valuers of matters that should be considered when completing a valuation of rural property. It is not intended as a substitute for training and experience or a short cut to meeting the requirements of the various applicable RICS professional standards. It may also be of use to clients in understanding the work and role of the rural property valuer and assist in arriving at properly agreed instructions.
The client base for rural property valuations can include:
• farmers
• landowners (private and public)
• estates
• lenders and other institutional clients
• developers
• investors
Some will have intimate knowledge of the industry and others less so. While the requirements of RICS Valuation – Global Standards (RICS Red Book Global Standards) will need to be met in every case, valuers will need to consider the individual requirements of each client carefully, both in terms of settling instructions and the level of detail and advice they include in their reports.
This document was reissued in October 2022 as a professional standard. It had previously been published in July 2019 as a guidance note. The regulatory requirements remain the same and no material changes have been made to the document. -
VIP 12: Valuation of development land (ARCHIVED)
This document has been archived and is available on isurv for information purposes only.
This information paper discusses the approach to the valuation of property where the proposed development is of a cleared, or greenfield site, or the site is to be redeveloped by removing all, or substantially all, of the existing buildings and constructing new buildings. It does not apply to redevelopment based on a refurbishment of existing buildings, with limited demolition. -
Sustainability and ESG in commercial property valuation and strategic advice
Published December 2021
Effective from 31 January 2022
This global professional standard provides a practical framework for delivering on sustainability and ESG investigation, and reporting requirements in professional valuation advice.
Please note, this was reissued in October 2022 as a professional standard. It was previously published as a guidance note. The regulatory requirements remain the same.
Practical and globally relevant principles for the delivery of the sustainability and ESG requirements in the Red Book Global Standards.
- Good practice advice supporting everyday commercial valuation practice and its interface with ESG and sustainability.
- Alignment of ESG and sustainability considerations with the core mechanics of valuation (purpose, basis, approach).
- A glossary of globally relevant sustainability and ESG terms and an appendix referencing world-leading rating, benchmarking and performance frameworks and tools.
The updated guidance is part of a suite of professional standards for sustainable practices across the built and natural environment. For example, ICMS 3, for the comparison of cost and carbon in construction. And the Responsible Business Framework, which enables clients to build and communicate a responsible business strategy mitigating negative environmental and social impact.
It is an update to the guidance issued in 2013 and is intended for valuing commercial property. It will be reviewed and updated periodically – reflecting pending developments in International Valuation Standards and the wider investment and regulatory framework globally. -
Integrating automated valuation models with valuation services to meet the needs of UK borrowers, lenders and valuers (RICS)
Published January 2010
This report, by Mary Lou Downie and Gill Robson of Northumbria University, with funding from the RICS Education Trust, explores attitudes towards the use of automated valuation models. -
Discounted cash flow for commercial property investments (ARCHIVED)
This document has been archived and is available on isurv for information purposes only.
This guidance note featured as part of the RICS Valuation Standards (the 'Red Book'), 7th edition, 2011. From 2012 this was removed from the Red Book and maintained as a standalone guidance note. -
Valuation methods for the Indian market (ARCHIVED)
This document has been archived and is available on isurv for information purposes only.
The purpose of this information paper is to provide a basic introduction to the methods of valuation most frequently used to assess the market value of real estate.
The methods are used for assessing the market value of either a single or multiple legal interests in a specific parcel of real estate, which is transferable freely in an open market within a given set of parameters. The nature of those legal rights will vary from state to state. -
User guide: reflecting uncertainty in valuations
Published June 2011
This guide is prepared for the benefit of valuers and other users of valuations to provide a general understanding of the concept of uncertainty and the methods by which uncertainty, in valuations for investment purposes, may be identified and communicated with clarity.
It is not intended to provide training in valuation techniques but rather to give valuation surveyors, and other users of valuations, a general understanding of the matters that need to be taken into account.
Uncertainty is a feature of investment in real estate regardless of geographical location. Although this guide has been written from a UK perspective, with examples based on UK investments, the fundamental principles are universal. Uncertainty as a concept does not vary and this guide can be applied to investment properties in all markets around the world. -
Financial viability in planning (ARCHIVED)
This document has been archived and is available on isurv for information purposes only.
Financial viability has become an increasingly important material consideration in the planning system. While the fundamental purpose of good planning extends well beyond financial viability, the capacity to deliver essential development and associated infrastructure is inextricably linked to the delivery of land and viable development. -
Farm stocktaking valuations
Published December 2016
Effective from December 2016
Reissued January 2023
Farm stocktaking valuations are required to assess the closing stock value, and thereby the proper profits or losses of a farming business, for inclusion in financial statements.
The aim of this professional standard is to assist professionals providing farm stocktaking valuations to correctly confirm instructions and prepare reports to clients that are Red Book-compliant, so as to ensure the highest standards of professionalism and clarity.
This document was reissued in January 2023 as a professional standard. It had previously been published in December 2016 as a guidance note. No material changes have been made to the document. -
Valuation of land for affordable housing Scotland
Published January 2013
In Scotland, a valuation of land for affordable housing can be required for several reasons, including: advice for loan security, acquisition, sale, evaluation of options, planning purposes, compulsory purchase, taxation and development appraisal for grant purposes.
This guidance note aims to inform the valuer’s approach to the valuation of land for sites in Scotland where there is a requirement to provide affordable housing or where the provider of affordable housing is seeking grant finance from the Scottish government. -
Analysis of commercial lease transactions, Hong Kong (ARCHIVED)
This document has been archived and is available on isurv for information purposes only.
The analysis of comparable transactions and the effect of the value of incentives is only one part of the process of considering the value of a specific property. There is no single correct approach to analysis and no 'right' answer. Methods may vary depending on the circumstances of individual cases and market practices in different areas and sectors. Changing markets can mean that an approach adopted previously may no longer be appropriate. This is particularly so in Hong Kong, which also has its own distinctive characteristics of deal structure and length of leases, which necessitates unique guidance in the form of these notes. -
EUGN 1: EU directives and regulations relevant to valuation (ARCHIVED)
This document has been archived and is available on isurv for information purposes only.
This guidance note draws valuers’ attention to the need for particular care when undertaking valuation work on which various EU directives and regulations may impact. It is essential that the work is undertaken in the light of knowledge of the existence of the directives or regulations, as the case may be, and with an understanding of how they are to be implemented in individual Member States.
Care must also be taken to ensure that valuation reports draw attention to any aspects of the directives or regulations – or, more particularly, their implementation – of which the client needs to be aware in order to understand and use the report for its intended purpose. -
RICS regulation PII guidance on risk, liability and insurance in valuation work (ARCHIVED)
This document has been archived and is available on isurv for information purposes only.
This has been superseded by Risk, liability and insurance, 1st edition (April 2021). -
Automated valuation models (AVMs) (ARCHIVED)
This document has been archived and is available on isurv for information purposes only.
This 1st edition information paper is intended for RICS members and others including lenders and similar institutions and considers the use of Automated Valuation Models (AVMs) in the UK. -
Valuation of historic buildings
Published May 2014
This information paper examines the principles of valuation as they apply to historic properties, providing an overview of the issues facing valuers appraising such assets. -
Valuation of intellectual property rights
Published March 2020
Effective from 1 June 2020
Reissued May 2023
This professional standard discusses the valuation of intellectual property (IP), a subset of intangible assets. Its purpose is to expand on the International Valuation Standards (IVS) and RICS Valuation – Global Standards (Red Book Global Standards) in order to clarify the legal, functional and economic characteristics of IP that should be considered and reported on in an IP valuation.
IP is a legal concept that refers to creations of the mind that are derived from intellectual or creative effort and for which exclusive rights are recognised at law. These rights enable the owner to prohibit others from using their property without permission.
IP can be categorised as registered or unregistered, and includes:
- trademarks
- patents
- copyright
- design rights
- plant breeders’ rights and
- trade secrets, which in this document mean confidential information that has commercial value.
This professional standard describes how the legal, functional and economic characteristics of IP influence the definition of the IP that is the subject of the valuation (subject asset), the extent of investigation, the choice of valuation methodology and the valuation analysis.
The 2nd edition of this professional standard is effective from 1 June 2020.
This document was reissued in May 2023 as a professional standard. It had previously been published in March 2020 as a guidance note. No material changes have been made to the document. -
Valuation of buy-to-let and HMO properties
Published October 2022
Effective from 1 December 2022
There has been a major shift in the UK housing market that has led to an increased bias to private renting, both out of choice and out of need. These changes have their roots in tenure-neutral housing policies that have been adopted since the 1980s, the impact of which has been amplified by the general undersupply of homes and the affordability challenge faced by homebuyers.
Based on the English Housing Survey 2020 to 2021, 4.4 million households now call the private rented sector home. Growth has slowed since 2018 as regulatory and taxation changes have taken effect, although appetite for investment in the private rented sector remains strong given favourable returns compared with other investment opportunities.
A shift towards a higher proportion of professional landlords has also been seen over this period. The creation of buy-to-let has helped to shape a private rented sector that is fit for purpose and provides choice, value, and flexibility for tenants. Demand from tenants continues to be high and is expected to increase. The expansion of buy-to-let has created significant challenges for valuers in this market.
The purpose of this updated professional standard is to provide sufficient background information and guidance to ensure consistency in the assessment of residential investment properties to include:
- single residential units
- houses in multiple occupation and
- multi-unit blocks.
This document provides best practice and advice for members and end users. -
RICS Valuation – Global Standards 2017 (ARCHIVED)
This document has been archived and is available on isurv for information purposes only.
The RICS Valuation – Global Standards 2017 took effect from 1 July 2017, the same date as the IVS 2017.
The accompanying Basis for Conclusions explains the rationale behind the more significant changes made in the final version of the Red Book 2017. Specifically, it addresses the main refinements made in consequence of the responses received to the public consultation. It has been produced purely to assist the reader and does not form part of the standards.
Following the publication of the new edition of IVS, an updated Red Book takes effect from 31 January 2020 in line with the IVS. -
Risk, liability and insurance
Published April 2021
Effective from 1 April 2021
Reissued October 2022
This document is intended to assist both members and their clients in understanding the main risks and liabilities associated with surveying. It guides members in the negotiation of equitable contracts with clients and the avoidance of major risks and pitfalls.
In October 2023, a new Appendix F was added to the publication, this appendix addresses the particular risk profiles that arise when construction projects are involved. In many cases, the provisions of the construction project are ‘tied’ contractually to the appointment of and obligations that exist for the surveyor, in particular with the requirement to enter collateral warranties and the like.
This document was reissued in October 2022 as practice information. It had previously been published in April 2021 as a guidance note. The regulatory requirements remain the same and no material changes have been made to the document. -
Valuation of development property
Published October 2019
Effective from 1 February 2020
Reissued April 2023
The aim of this professional standard is to guide the valuer in the approach to development property valuations.
A development property is defined in the International Valuation Standards (IVS) as:
‘interests where redevelopment is required to achieve the highest and best use, or where improvements are either being contemplated or are in progress at the valuation date’.
Development projects can vary from single or multiple residential projects to industrial estates, shopping centres, other retail developments, offices and mixed-use developments.
Development property valuations are often complex, have a potentially high variation and incorporate optionality. They can relate to specialised markets and therefore require a high level of expertise.
The principles set out in this professional standard apply to all valuations of development property and should be read in conjunction with the latest edition of RICS Valuation – Global Standards ('Red Book' Global Standards) – incorporating the International Valuation Standards (IVS), in particular IVS 410.
This document was reissued in April 2023 as a professional standard. It had previously been published in October 2019 as a guidance note. No material changes have been made to the document. -
Comparable evidence in real estate valuation
Published October 2019
Effective from 9 October 2019
Reissued April 2023
This professional standard discusses the use of comparable evidence in the valuation process.
It has four main purposes:
- to outline the principles of the use of comparable evidence
- to encourage consistency in the use of comparable evidence globally
- to address issues of availability and use of comparable evidence, especially in challenging market conditions and
- to consider potential sources of comparable evidence and their relative importance
The use of comparable evidence in the valuation of the principal types of real estate asset is examined. This professional standard does not discuss comparable evidence in the valuation of plant and equipment and other business assets, or personal property, but many of the principles described are also relevant to the valuation of these asset types.
This document was reissued in April 2023 as a professional standard. It had previously been published in October 2019 as a guidance note. No material changes have been made to the document. -
RICS Valuation – Global Standards
Published 30 November 2021
Effective from 31 January 2022
The new edition of Red Book Global Standards (RICS Valuation – Global Standards) takes effect on 31 January 2022, the same date as the new edition of the International Valuation Standards (IVS).
The accompanying Basis for conclusions explains the rationale behind the more significant changes made in the new edition of Red Book Global Standards. Specifically, it addresses the main refinements made in consequence of the responses received to the public consultation. It has been produced purely to assist the reader and does not form part of the standards.
The main reason for issuing the update to Red Book Global Standards is to take account of the changes to the IVS, which Red Book Global Standards adopts and applies. -
Existing use value (EUV) valuations for UK public sector financial statements
Published July 2023
Effective from October 2023
This professional standard provides practical advice, guidance, consistency and clarity to RICS members in the UK on the interpretation and application of existing use value (EUV) valuations of owner-occupied operational properties in public sector valuations when used for financial reporting purposes. EUV is the prescribed valuation basis as defined in UK VPGA 6 of the RICS Valuation – Global Standards: UK national supplement.
The content is intended to assist members by explaining and reaffirming the principles of EUV when used in the public sector financial reporting context and to enable a more consistent approach.
While the geographic scope of this standard is the UK, many of the principles are globally applicable and may support RICS members outside the UK.
Please note: The cross references in this standard relate to the updated Red Book UK national supplement, which is due to publish later in 2023.