rics uk valuation conference - turtl · connect beyond rics uk valuation conference ... nigel...

28
RICS UK Valuation Conference Guiding you through crucial market updates and advancing your role in the commercial valuation sector

Upload: trinhngoc

Post on 02-Apr-2018

216 views

Category:

Documents


1 download

TRANSCRIPT

Page 1: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

RICS UK Valuation

ConferenceGuiding you through crucial market

updates and advancing your role in the

commercial valuation sector

Page 2: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

RICS UK ValuationConference29 March 2017, London

Page 3: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

RICS UK ValuationConference

Royal Garden Hotel, 2-24 Kensington High St,London, W8 4PT

Gain 6 hours Formal CPD

With a comprehensive programme featuring a

combination of plenaries and breakout sessions,

attend this one day event to get to grips with key

issues you face as a commercial valuer and make sure

you are equipped with the latest knowledge to

overcome risks and be in a better place to advise your

clients.

Start off the day by listening to a series of plenary talks

focusing on key economic updates, global market

conditions and predictions, PII and valuer liability,

Valuation Standards together with talks on

International Property Measurements Standards where

we will be looking at a company has implemented the

latter, problems encountered and how they have been

dealt with within the context of a measurement

surveying firm.

Attend breakout sessions in the afternoon to ensure

you gain practical knowledge on topics such as

valuation of renewable energy installations, conflicts of

interest in valuation, valuing for litigation amongst

others, before coming back for a closing plenary on

APC in the valuation pathway. In addition, this event

provides an excellent networking opportunity, whilst at

the same time offering six hours of formal CPD.

Highlights for 2017:

• Listen to key UK economic updates,

benchmarked against global market conditions

and predictions

• Emma Vigus from Howden and Tom White from

Clyde & Co discuss PII and valuer liability and

how commercial valuers can mitigate areas of

risks.

• Receive an update on international valuation

standards and understand the impending

changes to the Global Red Book, the UK Red

Book and how might these impact on your daily

practice in the UK

• Our speakers will discuss International Property

Measurements Standards and Regulation with

interactive case studies so don’t miss the

opportunity to get involved and ask your

questions to the experts

• Kate Taylor will update us on APC in the valuation

pathway.

Prices

RICS member rate - £230 + VAT

Non-member rate - £310.50 + VAT

Page 4: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

Groups of 3 or more booking at the same time from

the same company receive a 10% discount. 5 or more

receive a 15% discount. 7 or more receive a 20%

discount. This cannot be used in conjunction with any

other offer from RICS Conferences.

Book your placeonline today

Page 5: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

This year'ssponsor's

Page 6: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

Sponsor this conference 2017 Sponsors A number of sponsorship and exhibition opportunities

are available at our conferences; which offer a diverse

audience across the UK, leading industry and

government speakers, and a platform for networking

throughout the day. By becoming a sponsor you can

greatly enhance your company’s profile in the property

arena. Promote your solutions at the conference and

build long term relationships with industry

representatives across the quantity surveying and

construction sector.

Contact:

Ian Christensen

Commercial Sales Manager

+44 (0)20 8141 8534

Page 8: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

2017's conferenceprogramme

08:30- 17:10

08:30 Registration and r08:30 Registration and refrefreshmentseshments

Opening plenary

09:30 Chair’09:30 Chair’s opening commentss opening comments

Graeme WGraeme Winserinser, Head of Pr, Head of Property Risk, Nationwideoperty Risk, Nationwide

and Chair of RICS UK Vand Chair of RICS UK Valuation PGaluation PG

09:35 Economic update and investment in the UK09:35 Economic update and investment in the UK

marketmarket

• UK economic performance

• Global market conditions and predictions

• UK’s current state post Brexit and in the current

world market

Simon Rubinsohn, Chief Economist, RICSSimon Rubinsohn, Chief Economist, RICS

10:05 V10:05 Valuation standaraluation standardsds

• Global Red Book update

• UK Red Book

• Looking ahead: what are the next steps?

Ben ElderBen Elder, Inter, International Dirnational Director of Vector of Valuation, RICSaluation, RICS

Fiona Haggett, UK VFiona Haggett, UK Valuation Diraluation Directorector, RICS, RICS

Becky Thomson, UK VBecky Thomson, UK Valuation Associate Diraluation Associate Directorector,,

RICSRICS

10:50 Networking r10:50 Networking refrefreshment breshment breakeak

11:25 PII and valuer liability11:25 PII and valuer liability

Emma VEmma Vigus, Dirigus, Directorector, Pr, Professional Indemnity,ofessional Indemnity,

HowdenHowden

TTom White, Partnerom White, Partner, Clyde & Co, Clyde & Co

12:10 IPMS in practice12:10 IPMS in practice

This session will look at how a firm has implemented

IPMS, problems encountered and how they have been

dealt with. Please note that our speaker will be

describing the implementation of IPMS within the

context of a measurement surveying firm and its own

working practices.

Robert Ash, Account ManagerRobert Ash, Account Manager, Plowman Craven, Plowman Craven

12:45 Regulation update12:45 Regulation update

Interactive case studies on regulation where we will be

looking through different scenarios and discussing

penalties and consequences in case of non-

compliance and what you can to do bring increased

confidence and transparency to your clients.

Jonathan Gorvin, Head of Regulatory Policy &Jonathan Gorvin, Head of Regulatory Policy &

Development, RICSDevelopment, RICS

13:15 Lunch13:15 Lunch

14:15 – 16:40 Delegates select which session to14:15 – 16:40 Delegates select which session to

attend frattend from brom breakout 1 and 2eakout 1 and 2

Page 9: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

Breakout 1

14:15 A V14:15 A Vision for Real Estate Finance in the UKision for Real Estate Finance in the UK

Peter Cosmetatos, CEO, CREFC EurPeter Cosmetatos, CEO, CREFC Europeope

14:55 UK commer14:55 UK commercial Prcial Property Lending Reportoperty Lending Report

• Update on the recent debt market activity

DrDr. Nicole Lux, Senior Resear. Nicole Lux, Senior Research Fellowch Fellow, De Montfor, De Montfordd

UniversityUniversity

15:35 Networking r15:35 Networking refrefreshment breshment breakeak

16:00 Panel discussion: conflicts of inter16:00 Panel discussion: conflicts of interest inest in

valuationvaluation

A panel discussion determining what constitutes a

conflict of interest for a valuation professional

Panel members:Panel members:

Breakout 2

14:15 V14:15 Valuing for litigationaluing for litigation

• What are the typical pitfalls?

• How can valuers mitigate risk in their valuation

reports?

Amanda Burge, PartnerAmanda Burge, Partner, Hamlins, Hamlins

14:55 V14:55 Valuation of raluation of renewable energy installationsenewable energy installations

• Valuation challenges

• Information required by the valuer

• The valuation report

• General principles of valuation as applicable to

renewables

Amanda Blythe-Smith, Associate DirAmanda Blythe-Smith, Associate Director – Leisurector – Leisure &e &

TTrade Related Prrade Related Property, Savillsoperty, Savills

Sonya BedforSonya Bedford, Head of Renewable Energy, Stephensd, Head of Renewable Energy, Stephens

ScownScown

15:35 Networking r15:35 Networking refrefreshment breshment breakeak

16:00 Panel discussion: conflicts of inter16:00 Panel discussion: conflicts of interest inest in

valuationvaluation

A panel discussion determining what constitutes a

conflict of interest for a valuation professional

Panel members:Panel members:

TTony Majorony Major, Head of V, Head of Valuer Panel Management,aluer Panel Management,

BarBarclaysclays

Andy Miles, PartnerAndy Miles, Partner, Knight Frank, Knight Frank

Simon RadforSimon Radford, Chief Executive, Lothbury Investmentd, Chief Executive, Lothbury Investment

ManagementManagement

16:40 APC in the valuation pathway16:40 APC in the valuation pathway

Kate TKate Tayloraylor, Consultant T, Consultant Trainer APC and Vrainer APC and Valuationaluation

17:20 Chair’17:20 Chair’s closing rs closing remarks and close ofemarks and close of

conferconferenceence

Graeme WGraeme Winserinser, Head of Pr, Head of Property Risk, Nationwideoperty Risk, Nationwide

and Chair of RICS UK Vand Chair of RICS UK Valuation PGaluation PG

Book online now

Page 10: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

BreakoutsessionsGet further information

Page 11: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

Break-out sessions Valuation of renewable energy installations

This session will look at valuation challenges,

principles of valuation as applicable to renewables and

key information required in order to undertake

valuation of renewable energy installations.

UK Commercial Property Lending Report

A comprehensive look into the various aspects of the

commercial property lending market, where our

speaker will be commenting on research findings

enabling you to get to grips with activities and trends

in this volatile market.

Conflicts of interest in valuation

A panel discussion determining what constitutes a

conflict of interest for a valuation professional.

Valuing for litigation

Whilst litigation is often considered to be the last

resort, this session examines the typical pitfalls and

how valuers can mitigate risks in their valuation reports

if they get involved in such cases.

A Vision for real estate finance in the UK

Attend this breakout for a thought provoking

discussion on the recent global financial crisis and

what is needed in terms of regulation to make the

market more resilient in the face of economic

uncertainty.

Residual valuation

What is the status of the current RICS guidance on

residual valuation? Understand the research that has

been carried out and how this may impact the way

residual valuation is conducted.

Choose your session at the checkout whenbookingonline

Page 12: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

Stay connectedFind out how

Page 13: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

Connect beyond RICSUK Valuation Conference

Follow and take part in discussions before,during and after this year's conference.

Twitter & LinkedInCatch up with industry news and reports via the RICSRICS

LinkedIn GrLinkedIn Groupoup

And take part in discussions before, during and after

this year's conference by using our twitter hashtag

#RICSvaluation#RICSvaluation

Join the RICS conversationsRICS has extensive social networks that provides you

the opportunity to get yourself immerse into the

conversation(s) that is important to you, your

profession, your company, and your career.

To take advantage of all the resources RICS has to

offer you through our social network, connect and

converse with us.

Like RICS on Facebook: facebook.com/ricssurveyors

Follow @RICSnews on Twitter: twitter.com/ricsnews

Follow RICS on LinkedIn: linkedin.com/company/rics

Page 14: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

Conflicts ofinterestUpcoming RICS professional statement

Page 15: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

Nigel Sellars looks at RICS’ prNigel Sellars looks at RICS’ preparation of a neweparation of a new

prprofessional statement on conflicts of interofessional statement on conflicts of interest.est.

RICS is committed to providing the highest

professional standards and a regulatory framework

that can respond to the demands of the evolving

market, fostering an environment that can support

innovative ways of working and excellent services.

Share on TShare on LinkShare on FacebookShare on Google+

"If conflicts arise and are notappropriately identified andmanaged, the integrity of theprofession and those in it are atstake. "

Nigel Sellars

This requires a delicate balance between maintaining

the public interest, through robust professional

standards with a clear regulatory environment, and

encouraging RICS-qualified professionals and member

firms to be competitive in their marketplaces. Without

public confidence in the professionalism of those who

are providing surveying services, the long-term value

of the sector will be jeopardised.

The surveying services market is changing and we, as

a self-regulating profession, have a pivotal role to play.

We assure professional competence, enhancing our

status by providing confidence to consumers and

markets. Given the profession’s commitment to best

practice, the focus of our work must be on improving

guidance, competence and quality assurance rather

than regulatory enforcement.

It is important that we continue to provide an

environment allowing new member firms to be

established. Existing members also need to be

allowed to grow, innovate and continue to provide a

range of competitive services to those who need

them. At the same time, consumer protection and the

development of the profession for the public

advantage are at our core. Our Royal Charter requires

us to promote the usefulness of the profession for the

advantage of the public around the world.

Existing RICS guidance

As the wider real-estate sector develops, the public

protection ffered by our standards remains integral to

everything professionals do. The five Global

Professional and Ethical Standards are the foundation

of the profession, as follows.

1. Act with integrity.

2. Always provide a high standard of service.

3. Act in a way that promotes trust in the profession.

4. Treat others with respect.

5. Take responsibility.

Page 16: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

Aside from the overarching RICS Rules of Conduct,

which make specific reference to conflicts, there is

currently targeted guidance on conflicts in certain

sectors, including the Conflicts of Interest 1st edition

guidance note for dispute resolution practitioners, and

specific commentary in the Red Book on valuation.

However, there are no currently agreed global

principles in this area.

Conflicts of interest cut across the profession

regardless of geography or specialism. If conflicts arise

and are not appropriately identified and managed, the

integrity of the profession and those in it are at stake.

What constitutes a conflict, and when should a

professional step aside from acting, or proceed with

appropriate management systems in place?

As a regulator, we have to ask and answer these and

related questions. RICS wishes to ensure that all

market participants, members of the public and

governments continue to regard our members as

setting the benchmark for fairness and quality in the

property sector.

Working group

To consider this area, RICS has drawn together a

working group that includes senior RICS staff, member

firms of different types and sizes, industry bodies such

as the Association of Real Estate Funds, the British

Bankers Association, the Investment Property Forum

and the British Property Federation, as well as some of

our members’ clients, so as to represent stakeholder

interests as broadly as possible.

This group is chaired by an external solicitor with

extensive experience of conflicts issues in a variety of

professional contexts, and it has drafted, and been the

main sounding board for, the professional statement.

Professional engagement

Engagement with the sector is fundamental to the

success of any new guidance, to enable awareness,

recognition and ultimately adoption. RICS received in

excess of 400 responses to its conflicts questionnaire

in autumn 2015 from trade associations, users of

surveying services and practitioners varying in size and

location.

These demonstrated a range of opinions on how the

respondents interpreted “conflict”, the seriousness

with which it was viewed, and what should be done in

response to such situations arising. The divergence

Share on TShare on LinkShare on FacebookShare on Google+

and strength of opinion illustrated that, whatever form

the eventual professional statement takes, there will be

those who disagree with it. Nevertheless, the working

group has debated this extensively to ensure the

statement itself is consistent and upholds the integrity

of the profession.

"We assure professionalcompetence, enhancing our statusby providing confidence toconsumers and markets"

Nigel Sellars

The professional statement will be a firm global

foundation for those RICS-qualified professionals who

face a potential conflict of interest. Such professionals

and their clients should be clear about what RICS

views as a conflict of interest and what would be

considered a breach of the professional statement.

The statement will evolve through this continued

consultation with the public, consumers, practitioners

and the wider profession.

Page 17: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

Building on the autumn 2015 questionnaire and

subsequent stakeholder meetings between May and

July 2016, we asked practitioners and industry

stakeholders from around the world to consider the

draft consultation document.

Downloads of the consultation and responses received

both reached record numbers, illustrating the strength

of feeling and interest in this area. Recurring response

themes included informed consent, information

barriers and related firms, along with sector-specific

comments. We will use your views to develop our

global framework, providing clarity and consistency

across the industry.

Status

This proposed guidance will be global, and as a

consequence of its professional statement status will

contain a blend of mandatory and advisory elements.

More detailed guidance and the application of these

principles in particular specialisms and geographies

will be provided through the appropriate forum, if

applicable, in due course.

RICS-qualified professionals and member firms will be

subject to RICS regulatory discipline should they be

found to be negligent or acting without regard for the

professional statement. The statement will dovetail

with the new International Ethics Standards and will

therefore have the appropriate status in the RICS

standards hierarchy.

Next steps

Following the close of the consultation, the working

group has considered all feedback received. At the

same time, additional meetings with key stakeholders

have taken place. Appropriate amendments are

currently being made to the documents, with

continued engagement across all world regions during

this process to ensure relevance and applicability at a

global level.

It is envisaged that, over time, RICS world regions and

local professional groups will provide additional sector-

specific or regional guidance where appropriate. In the

UK, RICS is currently working on a UK Commercial

Investment Agency Professional Statement, which will

contain mandatory and advisory content to support

the Global Professional Statement to assist members

and practitioners in this sector.

We are conscious that each and every situation is

distinctive, and we do not wish to label categories of

conflict strictly as this would take account of neither

individual circumstances and local practices nor the

judgement of RICS-qualified professionals.

Following the publication of the professional

statement, there will be supporting material including

an FAQ document, as well as training for RICS

professionals.

The professional statement will offer clarity to RICS-

qualified professionals and member firms about what

is expected of them. It will also afford transparency to

the public regarding the seriousness with which RICS

views its members’ conduct.

Page 18: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

This feature is taken from the RICS Property journal

(December 2016/January 2017)

Page 19: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

Minimum EnergyEfficiencyStandardsWhat valuer’s need to know

Page 20: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

Share on TShare on LinkShare on FacebookShare on Google+

Andy MilesAndy Miles and Chris BennettChris Bennett highlight what valuers

and lenders need to know about the Minimum Energy

Efficiency Standards.

Following the Energy Act 2011, the Minimum Energy

Efficiency Standards (MEES) were established in 2015

to make it unlawful to let either residential or business

premises that do not achieve a minimum standard,

currently set at an energy performance certificate

(EPC) rating of E. There will be a soft start to the

implementation of the MEES legislation for all new

leases after April 2018, and a ‘hard start’ to the

implementation for all properties by April 2023.

"How are commercial propertyvaluers advising their lending clientswith regard to risk?"

The market has been aware of these proposals for the

last 5 years, and it is clear that the majority of

commercial funds and real-estate investment trusts

have for some time been assessing their existing

portfolios and the assets they have acquired. They

now have plans in place for tackling the letting issues

that will potentially arise in 2018.

But what about lenders who secure debt on

commercial property assets? How do they view the

implications that this legislation may have on assets

that they either have already under charge or propose

to take on? Are lenders fully considering the impact

that this legislation has on both the value of the asset

and future cash flows that service the debt?

Furthermore, how are commercial property valuers

advising their lending clients with regard to risk?

Risk

The single most important aspect for a lender when

assessing credit risk is to consider the likelihood of

repayment, both in terms of principal and interest, and

the implications of the MEES are critical in this regard.

Although there is an awareness of the MEES and in

particular minimum EPC requirements, lending market

convention has yet to evolve to cover all aspects of the

credit implications. For example, there is inconsistency

in approach to the assessment of space that becomes

unlettable, both for the capital expenditure and the

valuation implications of improving such space to at

least an E rating.

In the majority of instances, lenders increasingly

require the borrower to have valid EPCs available or

prepared as part of the due diligence process, to

demonstrate that the minimum rating is currently being

achieved. This can be a condition of funding, and a

lender can also require the implementation of asset

management objectives and a programme of capital

expenditure – irrecoverable through service charge or

sinking fund obligations – to maintain or improve the

EPC ratings.

However, lenders are in general still taking a light-

Page 21: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

touch approach to the MEES, in terms of both being

consistent in credit policies and understanding the

underlying EPCs themselves. For example, market

practice would not tend to distinguish between

individual EPCs in terms of their remaining duration or

requirement for re-assessment and the duration of the

loan to which they relate. It should be noted that there

is the real likelihood that ‘older’ EPCs, which currently

have a shelf life of 10 years, could easily mask risk.

Where the EPC was prepared many years earlier, there

is the potential that the asset could have a significantly

poorer rating if it were re-assessed today, given the

ageing of buildings and tightening of regulation. Some

lenders will consider an EPC to be out of date if it is

more than 2 years old and may require a fresh

certificate be prepared by an approved assessor. It

must be remembered, however, that the monitoring of

EPC assessors remains unregulated.

Void periods

Returning to the original observation about credit risk

and repayment, there is a significant chance that

lenders are wrongly assessing void periods, in respect

of vacant space that does not hold the relevant EPC

rating, when they consider new leasing beyond April

2018. The impacts of this are twofold:

1.the introduction of voids – and possibly other

irrecoverable costs such as empty rates or service

charge shortfalls – will reduce the level of rental

income with which to service the debt; and

2.the underlying security could become less valuable

as a result of required capital expenditure that may be

irrecoverable.

Both factors could adversely affect the ability of the

asset to enable repayment of the loan at maturity. In

this instance, the guidance of the lender’s valuation

adviser is of significant importance in terms of

understanding the implications of non-compliance with

the MEES regulations.

Both issues are material because breaches in debt

service levels affect loan ratings for regulated lenders,

lessening the economic performance of loans in terms

of the increased amounts of regulatory capital

employed. Delays in repayment of the loan at maturity

are also important for the deregulated sector, typically

represented by close-ended debt funds with fixed

investment and divestment periods. The materiality of

these issues is compounded by the fact that

properties with non-compliant EPCs would most

typically be found in the secondary or tertiary sectors

of the property market, with possible negative

implications for the long-term availability of credit to

these markets.

Valuers’ role

From a valuer’s perspective, part of preparing a

valuation report for ‘secured lending purposes’ is to

ensure that the lender is advised of the risks to the

potential future value of the asset and the cash flow it

may generate.

EPCs are a potential source of risk, so certificates

must be obtained where available and considered

carefully before the valuation figure is prepared. At this

juncture it is critical that the valuer does not:

• Stray outside their area of competence; or

• Proffer advice or make assumptions that then

prejudice their own professional indemnity insurance.

The valuer may identify where risk exists, but must

recognise their limitations and only incorporate likely

capital expenditure charges, having obtained them

from a reliable source and discussed them with the

client; the report must refer to the source of figures.

Page 22: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

So what should the valuer be seeking? If the property

asset is being traded, then the valuer must request the

EPC or EPCs; failing that, they should consult the EPC

Registers. It is possible that, if the property is not

being traded – for instance, because it is being

refinanced – or existing lettings pre-date the 2008

legislation, certificates may not be available, although

these situations are becoming rarer.

The valuer must ensure that they have sight of the

‘recommendation’ section of the certificate, because

this often becomes separated from the rating page.

That section will at least give directives as to what can

be done in the short, medium or longer term to

improve the rating of the asset.

Where a rating is edging towards the danger zone or is

already in the F or G bands, the valuer should advise

that the steps recommended to improve it be properly

costed by a building surveyor or quantity surveyor, as

it is probable that these expenses will fall to the

landlord – the borrower – to meet at lease expiry.

"Lenders should increasingly take a

Share on TShare on LinkShare on FacebookShare on Google+

proactive approach to understandingthe framework for MEES"

If a property is being acquired on the open market, it is

likely that the purchaser has already factored this risk

into the price, although this should not be taken for

granted. It is a situation that needs particular

consideration with a refinancing, as a borrower may

not have reflected the cost in their assessment of

market value. In these instances the valuer will need to

focus on ensuring that any risk is taken into account

and the lender advised accordingly.

If preparing a vacant possession assessment, the

valuer should certainly be looking to factor these costs

in to it to ensure the hypothetical building is fully

marketable.

Vigilant lending

To mitigate risks, lenders should increasingly take a

proactive approach to understanding the MEES

framework and its implications for their own loan

portfolios, whether these comprise new or historical

loans. Steps that should be implemented include

obtaining EPCs in respect of all space subject to the

MEES and considering the duration of the EPCs

relative to loan length. For non-compliant EPCs,

lenders should ensure that the borrower has set aside

sufficient capital and should also obtain professional

advice as to the feasibility of implementing the

programme in terms of both cost and time.

All of the above demonstrates that communication

between the valuer, the lending client and the borrower

is paramount.

Andy Miles FRICSAndy Miles FRICS is Partner at Knight Frank and ChrisChris

Bennett MRICSBennett MRICS is Senior Manager at DekaBank

This feature is taken from the RICS Property journal

(September/October2016)

Page 23: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

Additional resourcesA wealth of RICS resources available to

valuation professionals

Page 24: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

Valuation

RICS provides a wide range of resources tomembers and non-members. Browse thissection to find additional information andnews on the topic of valuation.

Professional Group

Our Valuation Professional Group is the professional

specialism across the valuation sector.

Our Professional Groups focus on four main areas:

• Standards

• Our Professional Statements

• Market insight

• What we Regulate

Our Valuation Professional Group Board is made up of

our volunteer members, led by our staff working in

partnership across the following sectors:

• General valuation

• Compensation bases

• Assessment for compulsory acquisition

• Investment appraisal

• Performance measurement and analysis

• Decision taking

• Rating valuation and property taxation law and

practice

• Property funding and financing

Working groups made up of our professionals who

provide the technical guidance and market insight that

underpin our standards and guidance.

If you are interested in supporting and contributing to

the work carried out by the Professional Group please

contact us.

Professional Guidance

RICS standards and guidance cover all areas of

surveying practice and embody best practice. They fall

into the categories of: professional

statements, practice statements, codes of

practice, guidance notes and information papers.

RICS members can download free PDF versions of all

our professional guidance publications,

including topics of valuation. Check the side-bar

options to refine the listed items

by topic or professional group, or search for specific

guidance.

Page 25: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

RICS News

RICS provides a range of articles and news stories on

a breadth of topics covering the topics of land,

property and construction. Members and non-member

can read the latest surveying industry news and keep

up with developments within RICS.

Read all news articles or sort by the relevant

professional group.

Property Journal

Published six times a year, Property Journal brings

together Commercial, Residential and Arts coverage in

a combined format.

The journal contains high-quality technical material in

clearly defined sections, as well as some material that

crosses professional groups to reach a wider

audience.

Read latest RICS Property Journal and access

archived versions.

Do you use RICS resources availableto you?

Yes, most or all of the ones listed

Yes, some of the listed resources

No, I did not know these were available

to me

No, and not planning to do so

See results

RICS Training

Our face-to-face courses cover all areas of surveying

and assessment and are run by experienced

professionals sharing their expertise, knowledge and

practical advice. RICS training will keep you up to date

on RICS standards and legislation which can be

Page 26: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

Share on TShare on LinkShare on FacebookShare on Google+

applied to the workplace immediately.

"The facts speak for themselves: 98%of delegates rated the content of ourcourses as 'Excellent' or 'Good' andagreed that content met theirlearning objectives."

Browse the list of our training courses to find one most

suited for you and your current development needs.

Modus Magazine

Modus is the RICS magazine that brings the latest

news and views, expert advice and in-depth features

spanning the breadth of the surveying profession

around the world. It includes articles, interviews,

opinion pieces and a breadth of information on various

essential topics.

Read the latest Modus issue and access archived

magazines.

RICS Conferences

RICS provides a wide range of events to keep you

updated on the latest standards and developments

within the building surveying profession. Our diverse

programme of conferences, seminars and workshops,

delivered by speakers of the highest calibre, offers

lifelong learning, thought leadership and excellent

networking opportunities.

Conferences cover a variety of topics and range in size

and location. Browse the full list of our upcoming

events, use the side-bar to select the conference best

suited for your needs.

isurv

isurv is an online portal that provides impartial advice

and information to help businesses find solutions to

specific issues. To reduce risk, the information

provided is updated by over 200 legal specialists and

industry practitioners. Having this resource can save

you time and money as you have experts to hand, so

there will be no need, in many cases, to pay for

Page 27: RICS UK Valuation Conference - Turtl · Connect beyond RICS UK Valuation Conference ... Nigel Sellars looks at RICS’ preparation of a new ... Aside from the overarching RICS Rules

additional advice. It will also provide you, as an expert

with a greater peripheral knowledge and advice which

can be passed onto your customers. Discover how

isurv can help you save time and money and reduce

business risk.