The Income Approach to Property Valuation, 4th edition

Citation

Havard, T. (1998), "The Income Approach to Property Valuation, 4th edition", Journal of Property Valuation and Investment, Vol. 16 No. 1. https://doi.org/10.1108/jpvi.1998.11216aae.002

The Income Approach to Property Valuation, 4th edition

The Income Approach to Property Valuation, 4th edition

Andrew Baum, David Macmin and Nick Nunnington

International Thomson Press,London,ISBN: 0-415-11709-7,207 pp.,£15.99

As noted in the preface to this new edition of this book, many things have changed since 1979 when the Income Approach was originally published. At the time, the limitations imposed by the lack of mathematical ability in the profession limited the understanding of modern or alternative approaches to valuation. The book was therefore aimed at "trainees, newly qualified and seasoned valuers", i.e. it filled an important gap in the market for a wide variety of valuers between academic theory and traditional practice tomes. Today, a new generation of valuers who have been exposed to these techniques and philosophies as part of their education are in practice and the authors accept that the target and focus of the book should now be on the student rather than the practitioner. This new edition is thus squarely aimed at being a good basic student text and in this it succeeds admirably.

The changes made in this edition seem to have had three aims; to change the format to make it easier for the student to refer to examples and explanatory text; to bring the content up to date as regards statute, key case law and professional practice rules and procedure; and finally, to reflect the technological changes that have occurred since the earlier editions were produced, particularly the availability of PCs, spreadsheets and property software packages. The basic structure and topic coverage of the earlier editions has remained, with a section dealing with basic valuation mathematics at the front, followed by chapters on basic income valuation, in turn followed by examination of more complex situations. However, the book now looks very different and there are different emphases within the sections which reflect the changes which have occurred in both the property market and the world in general. Examples of the alterations include the change to a two column per page format which allows a wider spread of information to be presented to the reader, the inclusion of simple spreadsheet exercises and summary pages and the addition of an appendix outlining the key features of the new "Red book" with regard to professional guidance and rules of engagement.

The changes do seem to work, given the targeting of the edition at the student textbook market. The authors have successfully updated this valuable textbook and given it a fresh look and a new lease of life. Whilst it might have been nice to see them explore new areas and issues, the focus is understandable and The Income Approach should remain standard reading for students of valuation for many years to come.

Tim Havard Centre for Property Development and Management,UMIST, Manchester