General/Topical Questions

Question 1

Tell me about something you are currently working on?

Answer 1

• Disposal of a portfolio of 7 light industrial and logistics assets in Poland
• Developer looking to proceed with disposal to provide the funds to reinvest into their development pipeline
• Prime industrial yield in Poland is 4.25% and there had been a large influx of international capital looking to enter the sector

Question 2

What is the government doing to assist occupiers impacted by Covid-19?

Answer 2

• Business rates holiday for the 2020/21 tax year for those that operate in the retail, hospitality and leisure sector
• Business rate reevaluation will no longer take place in 2021
• Coronavirus Act 2020 prevents landlords from forfeiting leases the non-payment of rent until 30 June 2020
• Job retention scheme allowing companies to furlough staff
• Business Interruption Loan scheme for SMEs, allowing them to borrow up to £5m for a period of up to 6 years and ‘bounce back loans’ for small businesses

Question 3

Tell me about an interesting article you have read recently?

Answer 3

• Modus article about the replacement of flammable cladding on tower blocks following the Grenfell Disaster in 2017
• Since the disaster, cladding containing aluminium composite materials has been identified on 205 building, however, only 24 have had it replaced
• High complexity in establishing liability for remedial works between the developer, contractor, leaseholders and insurers

Question 4

What guidance has the RICS issued on the impact of Covid-19 on valuation?

Answer 4

• Despite not not being able to inspect, valuations can still be considered as compliant with the Red Book Global. Need to confirm the nature of the restriction in the ToE and the report and express any assumptions made as a result of not inspecting
• Where the impact of Covid-19 is more severe, it may be necessary to declare material uncertainty (as per VPGA 10). RICS has provided some suggested wording for inclusion of a material uncertainty clause

Question 5

What guidance has the RICS issued in response to Covid-19?

Answer 5

• Issued “Impact of COVID-19 on valuation” statement
• Guidance for professionals (e.g. Guidance on valuation, guidance on PII)
• Support and guidance for SMEs

Question 6

Describe a recent piece of case law that is relevant to the industry?

Answer 6

Burgess v Lejonvarn 2020
Found that professionals who provide professional services gratuitously and without a contract owe a duty of care in tort to act with reasonable care and skill. But they are not liable for the work they do

Question 7

What have the Bank of England announced that LIBOR will be replaced with at the end of 2021?

Answer 7

SONIA (Sterling overnight index average)

Question 8

What CPD have you undertaken since handing in your submission?

Answer 8

Attended a session covering the updates to the Red Book Global Standards - 2020. These include:
• PS 1: Introduction of the output of AVMs as a written form of valuation
• PS 2: “Professional skepticism” when reviewing information and data
• VPS 3: Emphasis on the difference between valuation approach (i.e. overall manner in which the valuation task is undertaken) and the method (i.e. the particular procedure used to assess or calculate the result)
• VPS 3: Emphasis on the importance of discussing sustainability and environmental matters when valuing interests in real estate
• VPGA 8: Valuers should be aware of sustainability features and the implications the could have on property values (e.g. flooding, energy efficiency, accessibility). Should only influence reported values if market evidence would support or valuers believe market participants would reflect these matters in their bids