The RICS valuation and appraisal standards
| Pages | 495-501 |
| Date | 01 December 2003 |
| DOI | https://doi.org/10.1108/14635780310508649 |
| Published date | 01 December 2003 |
| Author | Nick French |
| Subject Matter | Property management & built environment |
RICS valuation
and standards
495
Journal of Property Investment &
Finance
Vol. 21 No. 6, 2003
pp. 495-501
#MCB UP Limited
1463-578X
DOI 10.1108/14635780310508649
PRACTICE BRIEFING
The RICS valuation and
appraisal standards
Nick French
The Department of Real Estate & Planning, The School of Business,
The University of Reading, Reading, UK
Keywords International standards, Surveys, United Kingdom
Abstract The Royal Institution of Chartered Surveyors (RICS) has, over a period of more than
25 years, provided guidance and mandatory advice to valuers providing valuations in the UK in
the form of a series of appraisal and valuation manuals. In May 2003, the latest edition of these
manuals was published: The RICS Valuation and Appraisal Standards. One of the principal
aims of the new (fifth) edition was to reflect the increasing international status of the RICS. As a
result the new ``standards'' will clarify the distinction between standards, which are of relevance to
members worldwide, and those that are specific to practice in the UK. Effectively, the new book is
implementing the RICS policy of adopting and supporting international valuation standards.
Introduction
The new RICS Valuation and Appraisal Standards (colloquially know as the
Red Book) came into effect from the 1 May 2003 (RICS, 2003). The Standards, as
with previous editions of the manual, only concern themselves with ``process''
and ``bases of value''. They do not deal with methods of valuation; the choice of
the appropriate method still lies, quite rightly, with the valuer.
The International Valuation Standards (IVSC, 2001) are no longer seen as an
alternative to the Red Book. The RICS fully supports the IVSC and the IVSC
standards and, indeed, the principal bases, applications and definitions are
from the IVS.
History of Red Book
The history of valuation guidance in the UK dates back to the 1970s' recession.
At that juncture, there was substantial criticism of the valuation profession
from both without and within. The RICS responded by establishing a research
programme into valuation methods and by the production of guidance notes
(the original Red Book).
This was a start but the original guidance was non-mandatory and only
related to asset valuations. Thus when there was bankers' disquiet in the early
1990s, the RICS joined with the British Banking Association (BBA) in a joint
working which resulted in a new valuation guidance on bank lending being
published in early 1994 (RICS, 1994). In a second and more far reaching
initiative, the Mallinson Committee (Mallinson Report, 1994) was set up to
review all aspects of the commercial property valuation process, which resulted
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