TECHNICAL BULLETIN
ISSUE 30
NOVEMBER 2018
THE RED BOOK RECENT CHANGES AND WHAT THEY MEAN FOR YOU FIONA HAGGETT BSC (HONS) FRICS OPERATIONS DIRECTOR, BLUEBOX PARTNERS
The RICS Valuation Professional Standards (Red Book) has long been the backbone of valuation, first in the UK and now globally. The Red Book provides a framework, within the rules of conduct, to ensure that users can be confident that the valuations they instruct are consistent, transparent and produced in line with international valuation standards. Fiona Haggett looks at the changes for 2018.
Global Red Book update
The draft document has been through the consultation process and is scheduled for publication at the end of 2018. For context the UK Red Book sits beneath the global version and is intended to set out the implementation of the Global Valuation Standards in a UK context.
The Global Red Book was updated in 2017. For residential valuers the changes were not huge, but included: ■■ A formal recognition that oral advice comes under the Red Book requirements (PS1). ■■ Recognition of the new global Ethics Standards and International Property Measurement Standards (PS2). ■■ A requirement to specify valuation currency and any limitations on liability that have been agreed in the terms of engagement and report (VPS 1 & 3). ■■ A requirement to choose the appropriate valuation method for any job and to be able to justify and explain this choice (VPS5).
RICS also intend to produce additional Jurisdiction Guides to support the Global Red Book. These documents will explain the adoption of standards in each global market and to cover regulation of the standards. The publication date for the UK Jurisdiction Guide hasn’t been announced.
Proposed changes
UK Red Book update
The draft UK Red Book supplement shows that there are a number of proposed changes, particularly within valuation
It’s now the turn of the UK supplement to be reviewed.
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