Industry voices discuss future of valuation services in commercial lending

The BBA, ABI and RICS will be working with their respective memberships to secure support for the proposed actions so there is greater consistency in secured lending valuation. This should go a long way to mitigating risk and valuers’ exposure and working towards greater sustainability in professional valuation services, which are central to risk management in commercial property lending.
 

A new UK Cross-Industry Commercial Valuation Forum created from the cross industry group, will discuss:

- Proposed review of Red Book wording on independence

- Valuer Registration to monitor competence as well as compliance with the Red Book

- Mutual sharing of risk monitoring templates and compliance measures

- Monitoring the Pre-Action Protocol on Professional Negligence Claims

- RICS Annual Return to identify concerns on run-off cover

- Collaboration on RICS PII minimum wording for lender due diligence

The cross-industry group was set up by RICS and chaired by Teresa Graham CBE FCA HonRICS, who said:

"We need to secure a sustainable future for the valuation profession in light of extremely challenging conditions. Valuation is a vital service in the market and I am delighted that lenders, insurers and valuers have shown the foresight and commitment to agree this recommended package of measures which, if implemented, will ensure a continued supply of valuation into the market and protect high standards of practice."