RICS launches its updated Valuation of Individual New Build Homes Guidance to increase confidence in valuations.
RICS has today (27 June) published guidance which aims to increase lending on new and self build houses by encouraging greater confidence in valuations.
The guidance has been updated to arm surveyors with the information they need to provide valuations for new and self build properties following market feedback, which revealed a growing trend in surveyors valuing new builds differently to older homes.
The guidance will ensure that surveyors carrying out valuations for new and self build properties follow a consistent methodology – instilling greater lender and borrower confidence and stimulating the flow of financing in the property market.
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, commented:
"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."
In response to the market and member consultation and feedback, the paper also addresses how stage payments for self build projects should be factored into valuations.
