Have your say: sustainability as a factor in the valuation process

Fiona Haggett FRICS

UK Valuation Director (RICS)

ReValue is an EU funded three-year project of which RICS is a part of. It involves a number of specialist companies (valuers, accountants, academics, technology companies etc) from across Europe who are collaborating in research and consulting with stakeholders in the wider secured lending, valuation and sustainability industries.

Canada Building New York

The project aims to look at property across Europe and understand if sustainability elements are acting as a factor in the valuation decision making process.

A guidance and training review

As an output, we will be reviewing the existing guidance on sustainability and property valuation and will look to produce training material aimed at informing and assisting the valuer with understanding the rapid changes in this field and how to consider incorporating sustainability factors as an element in the valuation process.

As a part of our initial investigations we are looking to understand the current status of sustainability as a factor in the valuation process of both residential and commercial property.

To do this we are hoping for the help of our professional valuers across the globe by asking you to do a short survey detailing your current valuation approach.

Complete this short survey

Your assistance in doing this would be very much appreciated; the greater the response, the more accurate the output will be as a reflection of the current status of the profession.

Comments (3)

  1. I concur with the view that the generality of the market does not take into account the whole occupational costs in determining choice of premises for occupation. It did occur when there was an over supply of accommodation, but where demand exceeding supply this assessment of opportunity cost falls away. Where there is a choice the occupier will tend to seek 'value for money' and take the apparent better standard of accommodation where available with the preferred area of search.
    I have noticed a change where brand conscious companies seek to be seen to act responsibly and choose accommodation that has high sustainability standards. This resonates with research carried out in the USA by the RICS some years ago.
    Over some 35 years I advised on the development and managed a purpose built office building that was occupied by about 24 charities. The brief was to charge, not a market rent, but an 'economic rent' that is an all inclusive rent reflecting the net costs of the provision of the building, plus annual running costs and an annual provision for a sinking fund for major repairs and replacement and renewals estimated over 25 years.
    The design and construction whilst to a budget was the subject of careful choices of materials in use, as was a major refurbishment scheme some 30 years later.

    Kevan Carrick Kevan Carrick, 13 June at 08:05AM

  2. Thank you for this insightful response Kevan. Much appreciated.

    Fiona Haggett Fiona Haggett, 16 June at 09:07AM

  3. It should be. I bought a new build speculative quality 4 bed house and moved from a 30's3 bed semi detached. It is 30% bigger with a fully exposed external wall perimeter but has have the utility costs.

    John Hawksby John Hawksby, 16 June at 14:19PM

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