The public houses section covers the capital and rental valuation of public houses. The primary RICS professional guidance on this subject is VPGA 4 Valuation of individual trade related properties, and the more specific The capital and rental valuation of public houses, bars, restaurants and nightclubs in England and Wales. The object of the latter is to provide practical assistance to valuers dealing with public houses.
The underlying reason for the valuation of a public house will influence the type of research the valuer should undertake, and the type of calculation needed to formulate the valuation. Public houses in the main are acquired and run for profit, and so are valued by the profits method of valuation. RICS guidance emphasises that it is important that the valuer is regularly involved in the relevant market as practical knowledge of the factors affecting the market is essential to analysis of comparable transactions.
Related RICS standards and guidance: The capital and rental valuation of public houses, bars, restaurants and nightclubs in England and Wales
Related RICS standards and guidance: Comparable evidence in property valuation
Related RICS standards and guidance: RICS Red Book
Related template: Public houses valuation checklist
Related feature: Valuing trading potential