Supplementary evidence from the Royal
Institution of Chartered Surveyors (RICS)
COMMENTS FOLLOWING
ORAL EVIDENCE
SESSION ON
18 NOVEMBER 2008
The Royal Institution of Chartered Surveyors
(RICS) would like to offer clarification to Mr Morgan's comments
on TISC recommendations at the inquiry earlier last month.
Following the publication of the previous Committee's
report, RICS' Trade-Related Valuation Group examined in detail
the recommendations and concluded these were not issues which
directly relate to valuation methodology; they relate primarily
to the operation of the pubco business and the public houses that
form part of that business. For this reason, we did not include
the findings in our general guidance on the profits-related valuation
method, because they were not appropriate, and not, as suggested,
because we did not agree with them.
The RICS Valuation Standards (the Red Book),
and in particular GN1, follows the International Valuation Standards
which relate to the profits method of valuation on a global basis.
Valuation Information Paper 2 has also been revised to address
certain rental valuation issues. Both these papers were sent to
the Committee in our submission dated 26 September 2008.
We hope you will take this into consideration
in your final report and we would be glad to provide further guidance
on this or other property-related matters.
1 December 2008
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