Citation
French, N. (2003), "The RICS appraisal and valuation standards (2003) (the "new" red book)", Journal of Property Investment & Finance, Vol. 21 No. 4. https://doi.org/10.1108/jpif.2003.11221daa.001
Publisher
:Emerald Group Publishing Limited
Copyright © 2003, MCB UP Limited
The RICS appraisal and valuation standards (2003) (the "new" red book)
Introduction
Way back in January 1996, the Royal Institution of Chartered Surveyors (RICS) published a radically revised "Red Book" renamed as the Valuation and Appraisal Manual which was mandatory for all valuations carried out in the UK.
Subject to exceptions, the manual applied to valuations, appraisals, revaluations and valuation reviews, and calculations of worth. The manual was not principally concerned with valuation theory or methods but with the mechanics of practice, including the assembly, interpretation and reporting of information relevant to the task of valuation.
International focus
Overall, the new manual was well received by both the profession and clients, however it was accepted that it was a very UK orientated document that sat uncomfortably with the international guidance coming from the International Valuations Standards Committee (IVSC). There was a lack of co-ordination with the international bodies. Similarly, the distinction between mandatory requirements and non-mandatory guidance was often not prominent with a number of duplication and inconsistencies between statements and styles. Therefore in 2001, the Appraisal and Valuation Standards Board (AVSB) of the RICS decided to address these issues and produce a new document that better reflected the international status of the RICS and dovetailed into the International Valuation Standards (IVS).
The RICS appraisal and valuation standards (2003)
Thus in May 2003 a new document comes into effect, the "The RICS Appraisal And Valuation Standards". This new manual is based on the IVS and has global standards and, locally applied, UK standards. The idea is that the new Red Book will be seen as a UK application of the international standards to which the RICS now fully subscribes. A full summary of the new document and details of some of the salient changes will be published as a practice briefing in the next issue of the Journal of Property Investment & Finance.
Nick French University of Reading