Valuation of buy-to-let and HMO properties
The rapid expansion of buy-to-let has created significant challenges for valuers in this market and the purpose of this guidance note is to provide sufficient background information and guidance to ensure consistency in the assessment of residential investment properties ranging from single units to houses in multiple occupation and multi-unit blocks.
The guidance is applicable to valuers who are instructed by lenders and private clients.
Note: A slight amendment has been made to this document to reflect the increasing concern and incidence of escalating ground rents in the market. Such clauses can have a material impact on value and should be a consideration in any valuation of a leasehold property.
[See new subsection 5.2, added on 14 December 2016. Subsequent subsections were also renumbered.]
A further factual amendment was made 23 December 2016 on when a mandatory licence is needed.