The RICS recommends that members carrying out valuations should include a phrase related to “material valuation uncertainty” in valuation reports. Villa Surveyors will be following this guidance. A summarised version of the phrase is set out below although we will be adopting the full recommended phrase in our valuation reports:
Market activity is being impacted in many sectors. As at the valuation date, we consider that we can attach less weight to previous market evidence for comparison purposes, to inform opinions of value. Indeed, the current response to COVID-19 means that we are faced with an unprecedented set of circumstances on which to base a judgement.
Our valuation is therefore reported on the basis of ‘material valuation uncertainty’. Consequently, less certainty – and a higher degree of caution – should be attached to our valuation than would normally be the case. Given the unknown future impact that COVID-19 might have on the real estate market, we recommend that you keep the valuation of this property
under frequent review.