Support the valuers to save the market
Lenders should help maintain the competitiveness of the valuation sector by instructing their solicitors to withdraw confetti letters to valuers, where no further action has been taken. This should help to make PI insurance premiums more affordable. Panel managers should also be bound to a code of practice to ensure market transparency, according to the independently chaired Commission into the future of the valuation profession.
The independent report, commissioned by RICS in response to acute concerns throughout the property industry, has announced a series of recommendations to help ensure that the future of the valuation profession is sustainable. The Commission chair, Dr Oonagh McDonald CBE, studied written and oral evidence submitted by representatives from across the insurance sector, banking community and property industry to address the balance of risk and reward, and how best to maintain high standards in valuation. These elements, at their core, are vital for underpinning economic stability and consumer confidence in the UK and overseas.
Further recommendations include:
• Valuers should be able to purchase PI insurance for individual valuations to help boost valuer numbers and better manage their risk
• Mortgage lenders should bear the cost of valuing a property during the purchase process
• Panel managers should be subject to an RICS-managed code of practice
Dr Oonagh McDonald, chair of the independent report, said:
“The commission was put together to make sure the property valuation market in the UK is fit for purpose and able to properly meet the needs of the general public. Having consulted extensively with people from right across the property, insurance and finance industries, I have come up with some recommendations to make sure this happens. I would like to see a change to the way that lenders charge for valuations and to ensure that those who actually assess a property’s worth are in a position to operate properly and are treated fairly. If valuation as a profession is going to be viable for years to come, lenders need to instruct their legal representatives to withdraw negligence claim letters if no action is being taken against those who value the property. Furtherm
