The UK property market needs stricter oversight and tougher rules governing property valuations to boost confidence in the process, a review has recommended.
The review was commissioned by the Standards and Regulations Council of the Royal Institution of Chartered Surveyors (RICS).
Recommendations include the introduction of a valuation compliance officer role for RICS-regulated firms undertaking valuation, the creation of a dedicated valuation panel and additional guidance on workplace culture. of this sector and the expected behavior of evaluation professionals.
The proposals apply to major UK and global assets such as shopping centres, offices and business parks.
“The changes recommended for enhanced supervision will support future stability and market confidence in this important asset class – much of which is funded by pensions and savings – and are therefore very much in the public interest. “said Janet, Chair of the Standards and Regulation Council. Paraskeva.
The report highlighted that the valuations provided by RICS-regulated members and companies underpin financial reporting and decision-making for billions of pounds of land and property assets in the UK and around the world -” a significant amount of which is ultimately financed by consumers through pensions, savings and investments.”
The objective of the review was to ensure that the services provided by RICS-regulated professionals and firms operating in the valuation of real estate assets for investment purposes, primarily for financial reporting purposes, remain relevant and reliable.
Peter Pereira Gray, Chairman of Valuation Review, said: “The recommendations will provide stronger assurance with stricter rules governing the valuation of properties. Ultimately, this will produce the best possible results for the markets and the public. »
Watch: Am I Wasting My Money Renting?