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RICS has published new guidance on valuing residential buildings with unsafe cladding, which it says will play “an important role in restoring a fully functioning [housing] market”
The advice, published by RICS’s Standards and Regulation Board (SRB), comes into effect immediately and aims to support lending and boost confidence among home buyers and sellers.
It is intended to help valuers undertake valuations for secured lending purposes on flats and is a further step forward “in the public interest”, according to RICS.
The loss of confidence in the fire safety of blocks of flats post-Grenfell has had a severe impact on the property market and leaseholders, with many still unable to sell due to the absence of mortgage finance.
RICS launched a consultation on the draft guidance in October, stating it would help lenders value blocks of flats requiring cladding remediation work and provide clarity and confidence in the housing market.
RICS valuers will now be expected to work according to the guidance from 6 December and the institution will continue to work with lenders and industry bodies to encourage consistent adoption in valuation instructions.
SRB chair Dame Janet Paraskeva said: “Our role is to safeguard the public interest. The protections brought into law for leaseholders and the pledge made by the lending industry to provide mortgages on properties covered by these protections have enabled us to provide guidance to valuers, ensuring a consistent approach for their lender clients.
“This brings much needed confidence to buyers, sellers, and the market as a whole.
“The board is pleased to put this advice into effect immediately, with support of stakeholders, to help those impacted by the building safety crisis.”
The new guidance was produced by a RICS-convened expert working group comprising valuers, lending bodies, conveyancers and fire engineers with input from Department for Levelling Up, Housing and Communities (DLUHC) officials, and takes into account the effect of government remediation schemes and qualifying lease protections and their impact on the value of properties.
Source: Property Week