HAPPY 50TH BIRTHDAY TO THE RED BOOK

This year marks the 50th anniversary of the Royal Institution of Chartered Surveyors’ Global Valuation Standard, the Red Book, marking five decades supporting “consistent, transparent and trusted valuation across global markets”.

The Red Book was created further to the property boom and market collapse of the early ‘70s, which saw the RICS and the Institute of Chartered Accountants in England and Wales establish a working party to address concerns around inconsistent valuation bases and reporting. The action led to the first edition of Guidance Notes on the Valuation of Assets being published in 1976, before the standard evolved with global markets, regulation and the valuation profession.

Fiona Mellor, Head of Valuation, said: “It is incredible to think just how much impact the Red Book has had on the industry. The RICS estimates that in the UK alone, assets representing £10 trillion of both commercial and residential real estate have been assessed using it as a guide.

“The world has changed significantly since 1976 – though it took 50 years to topple the famed long hot summer and drought conditions of that year from the history books. While the average price of a litre of fuel has risen from 15 pence to £1.75, a pint of beer from 32 pence to well in excess of £5.00 and a three-bedroom home in Birmingham has increased from around £10,000 to in excess of £300,000, the Red Book has remained a constant for those of us in the industry.

“It represents a guiding light for Valuation professionals, providing high standards and regulatory advice to ensure we provide consistent, transparent and trusted valuations to our clients across the UK,” she added.

Here’s to the next 50 years!

For commercial property Valuation guidance and support, contact Fiona and the team fiona.mellor@harrislamb.com.