A new edition of the UK Red Book comes into effect on 14 January 2019 – this is now styled as the RICS Valuation – Global Standards 2017, UK National Supplement. It was published earlier this month.
Of particular note is the inclusion of a new UK Valuation Practice Guidance Application (VPGA) on compulsory purchase and compensation. This is the first time the Red Book has contained specific guidance on this topic. To give UK VPGA 16 its full title, it covers Valuations for Compulsory Purchase and Statutory Compensation. Time will tell if the term statutory compensation might cover a wider category of compensation than just compulsory purchase. The new guidance makes specific mention of the RICS Professional Statements on surveyors acting in compulsory purchase and as expert witnesses. There then follows a gloss on the application of the Red Book to compulsory purchase valuation work.
Particularly noteworthy is the following statement:
The exercise of compulsory purchase powers can have a very significant impact on the homes and livelihoods of those affected. It is especially important that surveyors advising acquiring authorities, commercial partners, land owners and occupiers do so competently and responsibly. The aim of all parties and in particular the surveyors acting for them should be to reach agreement on a fair package of compensation, mitigation or where appropriate removal of the land from the order or threat of a future order, as straightforwardly as possible, and for the conduct of both sides to be reasonable and to take account of the constraints, challenges and impacts faced by the other.
Says it all really.
Our online seminar this Friday morning will be looking at the implications of the Red Book for rural valuations in connection with accounting and financial reporting purposes – including farm stock taking valuations. This will reflect the latest UK Supplement to the Red Book so you can be sure you have the latest information to hand. More information here on this link.
Some useful links for the compulsory purchase aspects:
We will be picking up other important developments in the UK Red Book from time to time. Meanwhile I hope you can join us on Friday morning.