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Review of Real Estate Investment Valuations

Review of Real Estate Investment Valuations

Responding to feedback and rapidly changing market dynamics, the RICS Standards and Regulation Board (SRB) commissioned a Review of Real Estate Investment Valuation. The Review’s aim is to future-proof confidence in valuations relied upon directly by third parties, predominately for financial reporting purposes, an important area of valuation upon which economies and the public rely most heavily.

The recommendations from the valuation review, led by Peter Pereira Gray, were published in January 2022. They are available to download on this page, along with the response from the SRB who has accepted all recommendations and are now initiating programmes of work with input from the profession and its stakeholders, to consider how they should be implemented.

Moving forward with the valuation review implementation

RICS is taking action to future-proof practices in the valuation of real estate assets for investment purposes in the public interest.

A dedicated sub-committee of the independently led Standards and Regulation Board (SRB) will oversee the development of specific reforms to implement all recommendations from the Valuation Review in a staged approach over the next 18 months.  The committee will be chaired by Richard Waterhouse, FRICS, a senior chartered surveyor, and member of the SRB. The initial focus for the implementation programme is on standards and practice issues and we are seeking views on proposals to introduce mandatory rotation of valuation firms and the introduction of new governance arrangements for the commissioning and receiving of valuation reports to inform an update to the UK supplement of the Red Book.

The input of the profession and its stakeholders has shaped this review since 2020 and we will continue to seek feedback from the widest possible audience through implementation to ensure the best possible outcomes in the public interest.

To canvas industry stakeholder opinion on what currently works within the UK supplement of the Red Book and what may need to be updated or removed in light of the recommendations, RICS ran a ‘Call for views’ from 11 April to 20 May.

RICS will now be forming Expert Working Groups to assist in updating the different sections of the UK Supplement. If you would like to express an interest in joining a group, please email RICS aims to formally consult on the updates in Autumn 2022.

“The Valuation Review is an extensive and thorough examination of the way commercial property works around the world – and its findings have shown that reforming part of the valuation practice across our education, regulation and standards will be vital for the sector to remain trusted and relevant.

“We are taking action to implement all the recommendations and I thank colleagues on the SRB and at RICS for asking me to lead this important work.”

Richard Waterhouse
Chair of the Valuation Sub-Committee

Richard Waterhouse
  • Chair of the sub-committee
  • Committee Members
  • FAQs

Chair of the sub-committee


Richard is a Chartered Surveyor by career, joining the RICS Standards and Regulation Board in March 2020. Richard has extensive public sector experience within the land & property markets, developing and driving policy across residential, commercial and infrastructure. He has served across several departments including, Communities & Local Government, Cabinet Office, HMRC and Treasury and in areas including litigation, policy development, risk & assurance, and introduction of new legislation. He also maintains a keen interest in the historic property, environmental conservation, lithics and kayaking.

More widely, he holds judicial office as a Valuer Chairing London, on the First Tier Tribunal (Property Chamber), dealing with residential disputes, and teaches valuation at the University College of Estate Management.

Committee Members

The Valuation Review Implementation Committee draws expertise from a range of stakeholders and across a full spectrum of members and firms. Members include:

  • Sara Ensor MRICS, EMEA Head of Risk & Compliance – Valuation Advisory, JLL
  • Ian Hardman MRICS, Head of Risk Management, Colliers
  • Mark Fox MRICS, Director, Foxglove Property Consultants
  • Jonathan Theobald MRICS, Derwent
  • Roy Albert MRICS, Lead Surveyor, Valuation Office Agency
  • Nick French FRICS, Chair RICS Global Valuation Standards Expert Working Group
  • Leigh Miller FRICS, Global Conflicts Leader, Ernst & Young LLP
  • John Boulton, Director Policy, ICAEW
  • Rod Lockhart, CEO, LendInvest


About the Valuation Review

  • The Valuation Review was commissioned to future-proof practices in the valuation of real estate assets for investment purposes, as a result of feedback and rapidly changing market dynamics. There are structural shifts in investor and occupier demand for real estate – many accelerated by the impact of the pandemic. The RICS Standards and Regulation Board asked the Review Chair to examine the way valuation of real estate assets for investment purposes are conducted and make recommendations to ensure valuations remain relevant and trusted.

  • The Valuation Review has been largely UK-focused, where RICS is the principal professional body and regulator of property valuation. However, it has also addressed global standards and assurance issues where appropriate, reflecting RICS’ role in upholding compliance with its standards by members around the world.

  • The initial evidence gathering for the Valuation Review looked at all aspects of valuations of property assets for investment purposes, but the Valuation Review has primarily focused on valuations of real estate assets for performance measurement and decision-making purposes, upon which third parties place reliance. These are principally valuations for:

    • financial reporting
    • inclusion in prospectuses and circulars, and takeovers and mergers
    • collective investment schemes
    • unregulated property unit trusts
    • commercial investment property financing.

    You are advised to read the full Review report findings to provide a clear understanding of the recommendations. The Executive Summary provides an overview.

    The SRB hope that members, regulated firms and stakeholders alike, will welcome the findings in the Valuation Review.

About the recommendations implementation

  • The valuation review recommendations will be implemented in stages, with an initial focus on standards and practice issues, with    Plans are being drawn up to ensure the work carried out is thorough and establishes future-proof practices in the valuation of real estate assets for investment purposes that are in the public interest.

  • Aside from an update to UK supplement of the Red Book, RICS will initiate programmes of work, with input from the profession and its stakeholders to update the Global Red Book and a number of global guidance documents that will further support the implementation of the recommendations from the valuation review. This will include updated global discounted cash flow (DCF) guidance among others.

  • The Valuation Review report recognises and endorses the role of RICS and its Standards and Regulation Board in regulating valuation with independent oversight. It acknowledges the progress that the profession has made by introducing Valuer Registration and embedding it over the past ten years. To drive the highest possible quality of professional practice, the Valuation Review report suggests that, for the highest public interest valuation purposes, assurance should be further enhanced and strengthened. This points to changes, not just in the standards but also in the approach RICS takes to monitoring and assurance delivered through the Valuer Registration scheme and through our firm based regulatory assurance.

    The Standards and Regulation Board has indicated in their response that resultant changes to the RICS standards and regulation framework will be implemented over an appropriate timeframe with regular engagement with stakeholders on progress.

  • The Review does not call for absolute prescription of a particular valuation model. It does, however, recommend that the valuation profession should incorporate the use of discounted cash flow as the principal model applied in preparing property investment valuations. It also suggests that further guidance and support for the use of DCF should be created as a way of addressing market needs. The Chair accepts that different methods and models may be used and supports the use of cross checking with different models. It is highlighted in the Review that clients are becoming less accepting of ‘implicit’ valuation inputs, assumptions, and outcomes within the method and models used; instead, the models should be ‘explicit’ to achieve the required levels of transparency, understanding, and education. The Review also notes that DCF has the potential to better consider operational factors and the impact of time. There was substantial support for the widened use of DCF from the Review call for evidence.

  • The Valuation Review has primarily focused on valuations of real estate assets for performance measurement and decision-making purposes, upon which third parties place reliance. Where this affects small and medium-sized firms, the Standards and Regulation Board will take a proportionate approach to ensure that SMEs are not subject to inappropriate regulatory burden, adopting a right-touch approach commensurate with risk.

  • In his review, Peter Pereira Gray highlighted the negative impact of a hard PII market on the valuation sector. Making reference to the ongoing review of PII requirements in the UK, he encouraged RICS to continue to work with partners and external stakeholders to address these risks and ensure that firms are not squeezed out of the market by a lack of available PII and high premiums. PII continues to be a core area of focus for RICS. As part of the PII review, we recently published a call for views (20 January to 24 February 2022) which analysed the issues currently affecting the PII market for surveyors and seeks views on a series of proposals and recommendations to improve the availability of adequate, appropriate and affordable PII. We encouraged submissions from valuers and valuation practices who are impacted by the difficult PII landscape or concerned that they may be impacted in future. We will continue to work with insurers, lenders and other stakeholders to ensure that they can have confidence in valuations undertaken by RICS members.

About the UK Supplement Call for views

  • To progress with the implementation of some of the key recommendations from the review, RICS has launched a call for views which is seeking feedback (from 11th April – 20th May) on the relevance of the current supplement and four specific recommendations – Commissioning and Receiving Valuation Reports, Valuation and Advisory Activities, Rotation and Valuation Audit Trail – that are closely aligned to the content currently included. The evidence gathered through this ‘call for views’ will be supplemented by round tables and workshops that will further inform the changes needed to the RICS Valuation Standards which again will be subject to the normal public consultation process later in the year (2022).

  • Following the call for views from 11th April to 20th May which will canvas industry stakeholder opinion on what currently works within the standards and what may need to be updated or removed, a draft of the UK Supplement will be created for a formal public consultation, which will take place later in the year (2022) to look at the detailed aspects of the UK supplement and the recommendations tied to the content in it. The commentary and suggested amendments gathered in the responses will be used as an evidence base for developing the Red Book UK Supplement update, which is aimed to be published in Spring 2023.

  • The UK national supplement augments the Global Red Book for valuations that are subject to UK jurisdiction. The current edition became effective on 14 January 2019 and was scheduled for an update this year regardless of the valuation review outcome.

    The update to the Global Red Book which came into effect in January 2022, was consulted on and drafted before the outcomes of the Valuation Review and is a separate document to the UK Supplement. However, RICS will formally consult on the changes specific to the recommendations in the Global Red Book later in the year (2022) as well, to be published in 2023 and in effect in 2024.

  • RICS and RICS members operate globally, and RICS valuers can practice on a global basis and for all valuation purposes and asset types. We therefore have to develop rotation policies based on the Review recommendations and guidelines that work to the public advantage, relevant to the location and valuation purpose. More detail on the Rotation process recommendation and to whom it applies to can be found from page 20 in the valuation review report. The Review states that it is largely UK focused, and we will first undertake a ‘Call for Views’ on UK rotation policy within the Red Book UK Supplement - for valuations upon which there is third party reliance. We will also look to amend the rotation policy contained in our Global Red Book for the next update. The Review recommendations were presented to the RICS Standards and Regulation Board (SRB) as a package and RICS will therefore work closely with SRB to make sure any updated rotation policies are workable within the wider implementation of the Review.


  • Should you have any questions related to the review that are not answered on this page you can email:

RICS Standards and Regulation Board Chair, Dame Janet Paraskeva


  • About the Valuation Review

    Responding to feedback and rapidly changing market dynamics, the RICS Standards and Regulation Board commissioned the Valuation Review in the public interest to future-proof practices in the valuation of real estate assets for investment purposes.

    The Valuation Review was led by Peter Pereira Gray, supported by an expert advisory group, and gathered insights through a public call for evidence and engagement with a broad range of stakeholders.

    • Peter Pereira Gray, Chair of the Review
    • Expert Advisory Group
    • FAQs

    Peter Pereira Gray, Chair of the Review

    Peter Pereira Gray, BSc (Hons) DipPropInvest FRICS, FRSA

    Peter has developed an extensive understanding of valuation practice after being involved in commissioning and receiving such services over the last thirty-five years in his role in the property investment sector.

    Currently acting as the Managing Partner and Chief Executive Officer of the Investment Division of the Wellcome Trust, Peter also sits on Wellcome’s Valuation Committee. Alongside this he is the co-chair of the Institutional Investors Roundtable, a body representing approximately $14 trillion in assets across the globe.

    Prior to joining the Wellcome Trust, Peter was Deputy Life Fund Manager and a Director in the property fund management division of Prupim, at the time one of the UK’s largest institutional property owners (1988 to 2001).

    I commend the RICS Standards and Regulation Board for commissioning this objective and transparent review and for accepting all of the recommendations. It is my belief that implementing these recommendations as a package will lead to a greater and more enduring trust in the work of RICS Registered Valuers

    Peter Pereira Gray, BSc (Hons) DipPropInvest FRICS, FRSA
    Chair of the Review

    Expert Advisory Group

    The Review was supported by a panel reflecting a range of expertise from different sectors, selected by the Reviewer.

    Expert advisory group members

    • Michael is the Chairman of the UK Advisory business of CBRE and joined CBRE’s investment team in 1981, running the Valuation department between 1999 and 2018.

      He has had a wide range of Non-Executive roles including the Policy Committee of the British Property Federation and the Bank of England’s Commercial Property Forum, IPD (now part of MSCI).

    • David is a Chartered Accountant with over 17 years’ experience working in commercial, operational, audit and advisory functions in the corporate and not-for-profit sectors. He is currently a Director at the Institute of Chartered Accountants in England and Wales. Prior to this role, David was a valuations specialist at a Big 4 firm.

    • Sarah has over 35 years’ experience in the City and in the investment management industry, including roles as Chief Investment Risk Officer at RBS Asset Management (and formerly at Coutts) and, most recently, Head of Risk at The Wellcome Trust, where her role spanned investment and operational risks.

    • Paul is the Head of Strategy and a Portfolio Manager for European Real Estate at JP Morgan Asset Management. He serves as a voting member of the European Investment Committee and a member of the group’s senior leadership team.

      Paul has served as Head of Private Markets Strategy for the Abu Dhabi Investment Authority (ADIA) and worked for Invesco Real Estate as a Senior Director and Co-Head of Global Research.

    • Currently the Executive Chairman and CIO of PineBridge Benson Elliot, Marc Mogull is also a Senior Fellow in Land Economy at the University of Cambridge and the Chair of the Bank of England Commercial Property Forum. Previously he has held executive/investment roles with Doughty Hanson Real Estate, Goldman Sachs, the EBRD and JMB Realty. He is also a member of the MHCLG/BPF and RICS Commercial Property Forums, and is the co-creator of the Honor Chapman Memorial Lecture Series.

    • Timothy is a planning, environmental and public law specialist. He has over 30 years’ experience of practice in the field of compulsory purchase, land compensation and rating. Prior to taking silk in 2006, he was standing junior counsel to the Inland Revenue on rating and valuation.

    • Isobel O’Regan FRICS FSCSI has been in practise for 35 years and is currently with Savills based in Ireland.  The majority of Isobel’s professional career has been in the area of professional services. Isobel is also currently a member of RICS Governing Council and holds the strategy seat for Valuations and Capital Markets.

    • Michael Prew is as senior Equity Research Analyst at Jefferies LLC based in London heading the Pan-European Real Estate and covering 30 UK REITs with 30 years' sell-side experience. He holds an honors degree from Imperial College in Mechanical Engineering and a master’s degree from its Business School.

    • Sandra is Chief Investment Officer, Chief Executive Officer, and sits on the Board of Oxford University Endowment Management Ltd (OUem). As Chief Investment Officer, Sandra has discretion for all investment decisions and as Chief Executive Officer, she is responsible for overall strategy of the business and ensuring the success of the company.

    • Becky is Chief Financial Officer at Canary Wharf Group. Becky qualified as a chartered accountant with PriceWaterhouseCoopers and has over 20 years of experience in finance with extensive knowledge of the real estate market.



    • Peter Pereira Gray was appointed by the RICS Standards and Regulation Board to lead the Valuation Review. The Review was supported by an Expert Advisory Group (EAG), which reflected a diverse range of expertise from different sectors, chosen by Peter Pereira Gray. The skills of those on the on the EAG included valuation, real estate, regulation, financial services, investment analysis and academia.

    • The independently-led RICS Standards and Regulation Board (SRB) provides oversight of RICS’ core public interest functions such as standard setting, entry to the profession and regulatory processes. The SRB commissioned the Valuation Review and asked the Chair of the Review to deliver recommendations to ensure valuation of real estate assets for investment purposes remain relevant and trusted. The SRB has received the final report and accepted all the recommendations for the Valuation Review and will now implement necessary programmes of work, with input from the profession and its stakeholders, to plan the implementation of the Review’s recommendations.

    • A dedicated RICS staff team provided project coordination and secretarial support to the Valuation Review. The recommendations and the report resulting from the Valuation Review are solely the opinions of the Chair, supported by advice from his Expert Advisory Group and the evidence gathered.

    • Over 180 responses were received to the Call for Evidence from a range of stakeholders. Some of the individual responses represented large multidisciplinary firms that employ hundreds of valuers. Responses were also received from smaller organisations and sole traders. The majority of responses were from valuers, with lenders, professional bodies, and regulators also submitting responses.  More detail on the respondents is published from page 56 of the report, including a list of firm names.