The RICS says it wants to stimulate lending on new homes, including self-builds.
It has updated its ‘Valuation of Individual New Build Homes Guidance’ to increase confidence in valuations, it says.
The guidance has been updated following market feedback which revealed a growing trend in surveyors valuing new-builds differently from older homes.
The guidance is intended to ensure that surveyors carrying out valuations for new and self-build properties follow a consistent methodology.
The paper has been adapted to reflect and ensure that recent market changes in buyer incentives and mortgage indemnity schemes, such as the Government’s NewBuy scheme, do not radically alter how valuations are carried out.
Peter Bolton King, RICS global residential director, said: “There have been significant changes in the new and self-build market – and a renewed range of buyer incentives has sparked some uncertainty on if and how these should be factored into valuations.
“This updated guidance will increase confidence amongst valuers, lenders and borrowers in their valuations by equipping surveyors with the information they need to carry out accurate and market consistent valuations.”
Also in response to feedback, the paper addresses how stage payments for self-build projects should be factored into valuations.
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Comments
The RICS says it wants to stimulate lending on new homes - Thats good. Please continue on doing that one.
How many have had sales kicked into touch by a down value in these circumstances?
Rather than getting a rehash of a press release, as a non-RICS member it would be useful for us to know what these changes in methodology actually are so it might be reflected in advice we give our clients.
'......consistent methodology'
Sounds wonderful. But they consistantly will not accept that several people wanting to purchase the same property at similar prices gives a real valuation.
How many have had sales kicked into touch by a down value in these circumstances?