Guidance Notice for New-builds Valeurs Is Published

RICS has comprised a Guidance Note for the valuation of new built properties, which has always been considered a challenging

process. The Guidance Note will come into effect on May, 1st 2009.
In September 2008 changes were made to the Red Book (RICS Valuation Standards, which includes rules and best practice guidance for RICS members undertaking property valuations), which allowed valuers to ask for incentives associated with new built properties to be disclosed. The new Guidance Note by RICS will provide valeurs with confidence to undertake the valuation of new-builds.
The Guidance includes the accession of new-builds in both, good times and bad times. It stresses the need to distinguish between the new-build premium and value-adding factors (the first is the portion of price which will evaporate as soon as the property is occupied, while the second is comprised of better building materials, advanced heating systems and other factors which will remain forever).
RICS representative, Barry Hall, claimed that the new Guidance Note will provide valeurs working in the field of new build properties with foundation stones. Both, developers and lenders agree that the raising of standards in the profession will benefit consumers as well as the industry as a whole.