Please note, this was reissued in May 2023 as a Professional Standard. It was previously published in July 2018 as a Guidance Note. The regulatory requirements remain the same and no material changes have been made to the document.

This professional standard gives guidance on the general approach to valuation that should be adopted for the build-to-rent part of the residential investment sector and recognises that – reflecting market practice – the principal basis should be an income-driven one.

The standard addresses the following:

  • form of tenancy
  • valuation considerations
  • valuation approach
  • assessment of gross income
  • assessment of operating expenditure
  • net income capitalisation
  • benchmarking
  • aggregate break-up value and
  • cash flow analysis.
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