Asset valuation of specialised public sector listed buildings by depreciated replacement cost

Abstract

This paper examines the way valuers working for Central Government apply the RICS Appraisal and Valuation Manual (the Red Book), its definition of depreciated replacement cost valuation and its effects on Government policy on public sector listed buildings, capital charging and Inner City Regeneration. This paper suggests that the Red Book provision for the valuation of specialised public sector buildings for which there is no market using depreciated replacement cost (DRC) method assuming actual replacement may discourage the use and reuse of those buildings. This could conflict with Government policy to preserve and enhance Britain’s heritage of listed public buildings. Also the strict application of Red Book valuation standards may produce unhelpful valuations which impede the capital charging system.

Citation

Andrew, A. and Pitt, M. (2000), "Asset valuation of specialised public sector listed buildings by depreciated replacement cost", Journal of Property Investment & Finance, Vol. 18 No. 6, pp. 627-636. https://doi.org/10.1108/14635780010357587