Independent Review of Real Estate Investment Valuations: why contribute?
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05 February 2021
Peter Pereira Gray, BSc (Hons) DipPropInvest FRICS
FRSA
Last year, I was honoured to be appointed to lead an Independent Review into Real Estate Investment Valuations.
An estimated 70% of global wealth is held in land and property assets and valuation therefore plays a critical role in supporting overall market confidence and economic stability. The RICS is the leading global professional body for property valuation service providers, with 16,000 registered and regulated professional valuers globally, so taking these points together, there is a chance to make a real difference here.
The RICS have commissioned this Review as they recognise there are structural shifts occurring in investor and occupier demand for real estate – many accelerated by the impacts of COVID-19 – resulting in changing market, public and regulatory expectations of valuers. A review is therefore needed to ensure that RICS valuation standards remain a foundation for confident markets within this context.
However, valuation is a broad topic, and no doubt the discussions over the coming months will reflect this, but in order to help the review I am breaking down the work into 4 main topics areas:
- Valuation Methodology
- Property Risk Analysis (also known as the ‘forward look’)
- Independence and Objectivity
- Measuring Confidence
These areas have been chosen to give us focus as we explore some of the broad commentary on the structural changes going on, and to help us look at the changes in expectations of valuers going forward.
“Responding to the Call for Evidence is your opportunity to submit a personalised response that might include your evidence and experience of a certain approach or to make a recommendation”
Recognising the importance of this topic for society and RICS, I have appointed a diverse expert advisory group to bring experience and challenge to the review from a variety of different perspectives. You can read more about the panel here.
The review seeks to get as many different views on these topics as possible, and so we also launched a Call for Evidence at the end of last year. This provides more detail on what we mean by each of the topic areas, and poses some questions. It is open until the 31st March 2021 and I would encourage you to respond.
Responding to the Call for Evidence is your opportunity to submit a personalised response that might include your evidence and experience of a certain approach or to make a recommendation. We hope that it will allow us to see the topics from different perspectives. This Call for Evidence is not limited to valuation practitioners; we are keen to hear all views on these topics, and from all perspectives (valuation practitioners, valuation professional organisations, financial organisations, other professional bodies, think tanks, clients, academics, consumers).
I can assure you that all the responses to this Call for Evidence will be considered carefully when writing my recommendations to the Standards Board. So, by contributing to the review through the Call for Evidence, you have a unique opportunity to influence the report and its recommendations, which in turn could influence the future of valuation. I really do encourage you to respond and look forward to reading your responses! Thank you in anticipation.
