When buying or selling property, especially when a mortgage is involved, understanding its true value is essential. This is often where a RICS valuation is required as an accurate, independent assessment of a property’s worth.
A RICS valuation is a professional assessment of a property’s value. It’s conducted by a RICS-registered surveyor and used for mortgages, financial planning or property transactions to ensure sound investment decisions.
But what exactly does a RICS valuation involve? How long does it take? And how much does it cost? If your valuation expires, what happens next? Read on to discover everything you need to know about RICS valuations, whether you need a survey, what to expect from the process, and when a valuation is legally required.
What Is a RICS Valuation?
A RICS valuation is a detailed and independent assessment of a property’s value. RICS-registered surveyors will conduct the valuation in accordance with RICS Red Book guidelines. These guidelines cover things such as the property’s size, condition and location.
Importantly, there is no conflict of interest because RICS surveyors don’t earn commission from their valuation. As such, a RICS valuation is required by lenders prior to mortgage approval. They can also be required to determine the appropriate level of insurance for a property.
When Do You Need a RICS Valuation?
The most common reason for a RICS valuation is that it’s required by a mortgage provider. Independent assessments of value are used by banks to make sound investment decisions. But this isn’t the only case you might need a RICS valuation. Scenarios where you might need the opinion of a surveyor include:
- Inheritance Tax Valuations – HMRC requires a professional valuation to assess an estate’s total worth for inheritance tax purposes.
- Capital Gains Tax Purposes – When selling property that has increased in value, a RICS valuation may be needed to calculate capital gains tax owed.
- Divorce and Legal Settlements – A RICS valuation is often needed to divide property assets fairly.
- Business Valuations – For businesses that own property, a RICS valuation is required for accounting, auditing or tax purposes.
- Development and Planning Applications – A RICS valuation can provide a reliable assessment of the property’s worth and future value.
What Does a RICS Valuation Involve?
A RICS valuation involves a thorough assessment of a property’s value, as judged according to a RICS surveyor’s extensive training and experience. As such, it covers several key areas:
Construction and Condition
A property’s physical condition is a big part of its valuation. After all, a property needing major repairs is worth a lot less to prospective buyers. Surveyors look at how well the property was built and maintained. Modern, energy-saving features could also result in a higher valuation.
Location & Amenities
When it comes to buying a property, location is (nearly) everything. This is often a case of how close it is to local schools and public transportation. General trends in an area’s desirability can also be a factor in the valuation—if more people want to live in an area, the demand for housing increases.
Comparable Sales Data
Surveyors will also use comparative sales data to arrive at their valuation. This aspect of valuation involves checking the prices of recently sold homes to judge where a property falls within the overall market.
Economic Conditions
The broader economic climate plays a key role in RICS valuations. If conditions are unfavourable—including high interest rates, inflation or economic uncertainty—valuations decline with demand. Conversely, during periods of growth and high consumer confidence, there is often an increased demand for property. A RICS valuation captures these market trends to provide an accurate assessment of value.
Environmental Factors
The surrounding environment also plays a crucial role in determining property value. When providing a RICS valuation, surveyors will weigh up zoning regulations, green spaces, infrastructure, as well as general environmental risks—such as flooding—to reach their conclusion.
How Long Does a RICS Property Valuation Take?
For most residential properties, a RICS valuation takes less than a couple of hours to complete, depending on the size of the property. This process involves a thorough inspection of the house and its immediate surroundings. The resulting report will be delivered within a few working days.
Some buyers may opt for a more detailed RICS valuation, in which case it will take longer to conduct and deliver. In-depth surveys are typically required for older houses or those built with unconventional materials.
How Much Does a RICS Property Valuation Cost?
A RICS valuation varies according to property type, size, location and the complexity of the valuation. At Crest Chartered Surveyors, our RICS valuation prices start from:
- £349 for up to a 2-bed property
- £369 for a 3-bed property
- £399 for a 4-bed property
- £449 for a 5-bed property
All prices are inclusive of VAT.
For a more precise estimate, you can always use our house survey cost calculator.
What Happens if My RICS Valuation Expires?
A RICS property valuation is typically valid for three months from the report’s date. That said, factors like market and property conditions, as well as local regulations, can impact a report’s validity. If your RICS valuation expires before you can complete a transaction, you’ll need a new one.
In some cases, a new report can be a simple “desktop valuation” that extends the original valuation by another three months. Importantly, a desktop valuation must be issued by the same RICS surveyor, on the company’s headed paper, and provided in a non-editable format.
Get Your Valuation from a RICS-Registered Surveyor
In summary, a RICS valuation is an accurate and detailed assessment of a property’s worth. They help to ensure compliance in a wide variety of financial and legal scenarios. Whether you’re applying for a mortgage, settling a legal matter, or evaluating your tax liability, a RICS surveyor can help you get the valuation you need.
At Crest Chartered Surveyors, we offer a wide range of RICS surveys and valuations in London and the surrounding areas. Our experienced team will help you choose the right survey for your needs before conducting a thorough valuation. Contact us today for expert advice.
If you’re keen to learn more about our services, explore our latest blog posts for insights on property valuations: