RICS Updates Guidance on the Valuation of New Homes and Self-Builds

Jul 11, 2012, 08:14 ET from Flat Pack Houses

PRESTON, England, July 11, 2012 /PRNewswire/ --

The Royal Institution of Chartered Surveyors (RICS) has published some guidance on new homes and self-build projects. The "Valuation of Individual New Build Homes Guidance" aims to increase lenders' confidence in valuations and it has been appraised to give surveyors the information they need to provide valuations for new and self-build properties.

Recent market feedback revealed surveyors' value new builds different to older homes and the advice issued by RICS is intended to create a consistent methodology to instil greater lender and borrower assurance, and stimulate financing in the market.

The paper hopes to offer more direction than previously available and it has taken into account changes in the market for mortgage indemnity schemes and buyer incentives, so they do not alter how valuations are carried out. It also addresses how stage payments for self-build projects should be factored.

Peter Bolton King, RICS Global Residential Director, said: "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."

The study comes at a time when Grant Shapps has announced plans for the UK's very first self-building communities. The Housing Minister has given the green light to seven sites across the UK that will be dedicated to self-build homes in an effort to double the size of the self-build construction sector.

With the Government urging mortgage lenders to back the self-build revolution, look no further than Flatpackhouses.co.uk; the specialists in engineered wood products for self-builds. The experts have been building houses

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