A RICS valuation is one of the most authoritative opinions of property value available in the UK. Produced by a RICS Registered Valuer following the RICS Red Book standards, it provides a formal, defensible assessment of what a property is worth. This guide explains when you need a RICS valuation and what the process involves.
What Is a RICS Valuation?
A RICS valuation is a formal written opinion of a property's market value, produced in accordance with RICS Valuation – Global Standards (the "Red Book"). It is produced by a RICS Registered Valuer — a surveyor who has demonstrated the competence and experience required to assess property values independently.
Unlike an estate agent's appraisal (which is an informal marketing opinion), a RICS valuation is a professional document for which the valuer is professionally accountable. It can be used for legal, financial, and planning purposes.
When Do You Need a RICS Valuation?
There are many circumstances where a formal RICS valuation is required or strongly recommended:
Mortgage applications: Lenders typically instruct their own valuer, but you can commission an independent RICS valuation to check the lender's figure or to support a mortgage application on an unusual property.
Shared ownership purchase or staircasing: Housing associations and shared ownership providers require RICS valuations when buying additional shares.
Separation and divorce: When dividing assets, a RICS valuation provides an independent, agreed basis for the property's value.
Estate and probate: HMRC requires a RICS valuation for inheritance tax purposes when property forms part of an estate.
Capital gains tax: When selling a property that has been rented or used for business purposes, HMRC may require evidence of its value at a particular date.
Help to Buy redemption: Redeeming a Help to Buy equity loan requires a RICS valuation of the property's current market value.
Lease extensions: Under the Leasehold Reform Act, the premium for a statutory lease extension is based on the property's value — requiring a RICS valuation.
Commercial property: Buying, selling, or refinancing commercial property typically requires a RICS Red Book valuation.
What Does a RICS Valuation Involve?
A RICS Registered Valuer will:
1. Inspect the property internally and externally
2. Review comparable sales evidence in the area
3. Consider the property's condition, location, tenure, and legal title
4. Produce a written valuation report in Red Book format
The report will state the Market Value (or another defined basis of value, depending on the purpose) as of the date of inspection. It will include the evidence considered, the methodology used, and any special assumptions made.
Market Value vs Other Bases of Value
RICS defines several bases of value, each appropriate to different circumstances:
Market Value: The most common basis. Defined as the estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arm's length transaction.
Market Rent: Used for rental valuations.
Reinstatement Cost: Used for insurance purposes — the cost of rebuilding the property if it were destroyed. This is not the same as market value.
Investment Value: The value of the property to a specific investor, based on their particular investment criteria.
Who Can Produce a RICS Valuation?
Only a RICS Registered Valuer can produce a valuation report in accordance with the Red Book. This is a specific accreditation from RICS, separate from general RICS membership, demonstrating that the individual meets the required standards for valuation work.
At Volarex, Adam Whitehouse is a RICS Registered Valuer, qualified to produce formal RICS valuations for a range of purposes including home surveys with valuation, residential property valuations, and reinstatement cost assessments.
How Much Does a RICS Valuation Cost?
A standalone RICS valuation typically costs £250–£700 for residential property, depending on the property type, size, and purpose of the valuation. At Volarex, we offer combined survey-and-valuation packages, meaning you can get both a Level 2 or Level 3 survey and a formal RICS valuation in a single visit.
Contact us for a quote tailored to your property and circumstances.