RICS to revise advice for valuers

Consumers hoping to find UK property to rent out could benefit from new guidelines that will be given to property valuers.

Members of the Council of Mortgage Lenders and the Royal Institute of Chartered Surveyors (RICS) have decided clarification of the current ‘Red Book’ guidelines is needed if a new build property’s true value is not to be distorted. RICS valuers need to provide an objective estimate of market value for mortgage lenders to use when designing their loan products.

A working party from the CML and RICS was set up when it was concluded that developers can have their job made more difficult by the sales incentives property developers sometimes offer to lure potential buyers. These include offering to furnish the property before the homeowner moves in, ‘cash back’ financial deals, and even new cars or holidays in the sun.

The working party decided that offers such as these mean the price paid does not always match the market value of the property in question.

The RICS Red Book has therefore been updated accordingly, instructing valuers to watch out for sales incentives and to compare a property with the market as a whole if necessary.

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