An updated version of the RICS Valuation – Global Standards (also known as the Red Book) comes into effect today, with all written valuations on and after this date needing to follow these standards. The changes from the 2020 version are relatively minor but do include:
- A new definition for ESG and reference in VPS2 (Inspections, Investigations and Records) as something valuers should take into account in their investigations. This corresponds with the RICS Guidance Note “Sustainability and ESG in commercial property valuations and strategic advice” which shares the same effective date, 31 January 2022.
- Not new but of note nonetheless, (under PS1) is the fact that automated valuation models (AVMs) are regarded as a written valuation for the purpose of the standards.
The implementation of the updated Red Book was announced in November 2021 (effective 31 January 2022) prior to the independent review into real estate investment valuations by Peter Pereira Gray submitted to RICS in December 2021 with all 13 recommendations accepted by RICS on 13 January 2022, but to be “implemented at different speeds”.