Valuation, accounting and taxation
- Company accounts
- Depreciation
- Refinancing and restructuring
- Reporting standards
- Valuing for fair rents
- Valuing for right to buy
Context
Valuation is fundamental to property transactions and management decisions relating to real estate. It affects the use of land, the nature and timing of development and redevelopment, purchase and disposal, lending and letting, taxation and financial statements. Property valuation therefore has a key role in wider economic, environmental and social sustainability.
For example, while it is clear that the primary cause of the current economic crisis was the lending policies of banks, valuation is an important part of the mortgage approval process which contributed to the crisis. Indeed, there is evidence that, in some cases, valuers were manipulated to ensure that valuations served the needs of their clients rather than provide an objective and entirely appropriate statement of value.
Valuation professionals require high levels of skill, ethics and performance in order to provide services to clients and stakeholders with a broad range of needs and demands. At CEM, we have experience in undertaking a range of valuation-related research within both the market and statutory framework, in order to improve practice across the industry.
Case study: Valuing for Right to Buy
For council house tenants seeking to purchase their homes, there has been an apparent discrepancy between the initial valuations provided by local authority valuers and subsequent valuations provided by the district valuer (on appeal).
CEM’s research found that the disparity between the two figures related largely to differences in the data sets available to the different kinds of valuers and the timing of the various valuations.
Sponsor: Office of the Deputy Prime Minister
For further information, visit http://www.communities.gov.uk/publications/housing/valuingright