RICS Knowledgebase

VPGA 10 of the Global Red Book 2025 deals with Material valuation uncertainty (MVU). Three common examples of circumstances in which MVU may arise are provided in VPGA 10 but it is not intended to be an exhaustive list. These are summarised below but the full VPGA should be consulted:

• Characteristics that make it difficult to form an opinion of the likely value. For example a very unusual asset
• Limited or restricted information available
• Significant market disruption due to unforseen events

In such situations, demands placed on valuers can be unusually testing. Although valuers should still be able to make a judgement, it is important that the context of that judgement is clearly expressed.

A valuation report should not just have a standard general caveat to deal with MVU, but should also include further specific commentary about the circumstances in question.

RICS does not prescribe exact scenarios or market circumstances in which material valuation uncertainty applies but has previously worked with the UK Valuation Forum and other stakeholders to provide supporting material about material valuation uncertainty in a UK market context. For example see the note about IHT and farmland as a result of the autumn budget 2024 here: https://www.rics.org/news-insights/recent-budget-announcements-on-agricultural-property-relief-and-business-property-relief

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