Health is a vital public issue, a large and growing sector of the economy, and an increasingly favoured asset class for investors.
The healthcare sector, particularly primary care, has seen significant transformation in recent years. The COVID-19 pandemic emphasised the critical role of medical centres and surgeries in providing essential healthcare services to communities.
Revisions support valuation in distinct sector
As the demand for such facilities continues to grow, it is critical that valuation professionals have a comprehensive understanding of the unique characteristics and challenges associated with valuing them.
RICS is therefore seeking input from professionals for the third edition of Valuation of medical centre and surgery premises.
This professional standard aims to support the practice, knowledge and performance of RICS members and regulated firms working across the medical and surgery premises sector, as well as other stakeholders such as the NHS, investors, developers, lenders, legal experts and professionals with an interest in primary care.
The standard will detail common approaches and benchmarks across the sector, helping chartered valuation professionals practise efficiently and consistently, and providing sound, contemporary advice in this area of practice.
Updates reflect current issues and guidance
The 2010 edition of Valuation of medical centre and surgery premises is being updated to include the following:
- comprehensive amendments that reflect legislative changes in the NHS Framework and British Medical Association guidance
- addition of sustainability and environmental, social and governance (ESG) section
- addition of three designated appendices relating to Scotland and Wales and incorporating additional information with respect to Northern Ireland, highlighting any key variations in guidance from England
- further guidance on the practice of top-up rents in the sector
- revisions to reflect present measurement practice for the sector
- signposting to updated relevant RICS valuation guidance
- reference to current RICS guidance on discounted cash flow and ESG issues.
Valuers are also reminded that the RICS Valuation – Global Standards (Red Book Global Standards) apply to valuations in this sector, along with the accompanying Red Book UK National Supplement.
Feedback will shape future practice
Interested parties can submit their feedback on the RICS iConsult webpage; prior registration is required from 2 September until 4 October.
Your input is crucial to ensuring that the standard provides accurate, reliable and up-to-date guidance for valuation professionals working in the healthcare sector.
By participating, you can help to shape the future of valuation practices in this important area.