22/01/2025
Insights
The RICS has proposed a series of updates for their guidance around red book valuations for UK surveyors and practitioners. As the built environment grows into a more connected and inclusive space, the Royal Institute of Chartered Surveyors is adopting new approaches for its changing workforce.
These latest International Valuation Standards were suggested by the International Valuations Standards Committee, which provides a framework for the RICS to adhere to.
The committee, a focus group of 100 valuers from across the world, gave feedback on how key aspects of the service could be improved in relation to other building surveying practices.
What is a red book valuation?
Informally known as the “red book”, the RICS Valuation – Global Standards applies the latest international standards and supplements them with additional requirements and best practice guidance. It is internationally recognised as one of the most rigorous sets of standards for valuations and, as such, serves as a key reference for global users and stakeholders.
A “red book” valuation is simply a valuation conducted by a qualified and RICS-registered valuer, under the RICS VRS scheme, with the overall purpose of compliance with the standards to deliver consistency, accuracy, objectivity and transparency - fundamental parts of building and sustaining public confidence and trust in valuation.
When are the new RICS Red Book Valuation updates going ahead?
The new edition was published on 2 December 2024 and will take effect on 31 January 2025. RICS Online Academy is providing support through a webinar that can be watched on their portal.
The purpose of the updates to RICS Valuation – Global Standards has been to:
- Incorporate findings from the Valuation Review, making the standards more accessible by removing repetition and enhancing dynamic cross-referencing
- Include new valuation methods and models, encouraging analytical approaches but maintaining the valuer’s choice and judgment.
- Amend existing mandatory standards (PS 1) around automated valuation models (AVMs), and incorporate new practices, processes and standards covering automation, AI and ESG
- Align with development in other relevant global standards and regulations, such as the new International Valuation Standards, including a revised structure and increased focus on ESG, data and valuation modelling - PS 1, PS 2 and the VPSs (professional and technical standards) and guidance have been revised and, in some cases, reordered
Other changes include the revision of VPGA 1 along with Valuations for financial reporting, and the introduction of VPGA 11. There has also been a move to undertake technical updates to all the valuation practice guidance applications (VPGAs).
What do the changes to RICS Red Book Valuations mean for me?
In the main, recipients of valuations do not have to worry, as these updates are designed to be adopted with minimal disruption.
Valuers and surveyors will be expected to adapt their working practices in line with the updates in time for the launch at the end of January 2025.
Eddisons Valuations Services
Whether it’s property, businesses and assets, we provide high-quality valuations advice across all sectors and specialisms. Our regional offices and nationwide presence give us the scale and agility to handle every commercial valuation, regardless of the size, location or timescale. We produce valuations in line with RICS requirements, backed by our in-depth knowledge of the market and extensive comparable data.
Our team of valuations surveyors grew in 2024 with the acquisition of Andrew Forbes Surveyors in the South West, with recent hires in Manchester, Leeds and London, we are ensuring that our offering is of the highest quality wherever our clients need us.