Fiona Haggett FRICS
UK Valuation Director (RICS)
26 Jul 2016 For discussion
It has now been several weeks since the UK electorate voted to leave the European Union. My previous communication reflected on the response of valuers to this outcome in the early days. It advocated caution until the impact of such a momentous decision on the property industry was established. The markets have now had time to settle and we have been able to take stock.
While there remains an element of uncertainty in some sectors, or particular segments, the post referendum impact appears to have been muted, with buyers and sellers acting cautiously rather than in a panic.
While the outlook remains cautious, initial fears of a steep fall in values have subsided and valuations going forward will have the benefit of being able to reflect the emerging sentiment of the market, backed up with transactional evidence as activity builds.
In this situation our members must use knowledge of their own property market sector along with professional judgement in advising their clients. The principles of VPGA9 in the RICS Valuation : Professional Standards Global Edition still apply, but, with the emergence of recent evidence on which to base their judgements, valuers will wish to consider if the use of a clause highlighting uncertainty is any longer necessary or appropriate.
Where a clause is used, the strength of the wording should be reviewed and must reflect the current market situation. In making this decision, valuers should not only take into account their market knowledge, but the requirements and needs of their clients.