Hot Topics Flashcards
Standards and Regulation Board Risk outlook report 2024 key points?
Global Risk Outlook
- climate change
- attracting talent
- assessment into profession
- data, cyber security
- money laundering and corruption
UK Risk Outlook
- housing and building safety
- AML and financial sanctions compliance
- Government policy.
Responsible use of AI 1st Edition’ Professional Standard.
- how to use ai
- communication and transparency with clients around use of ai
- issues relating to privacy
- AI Safety
- RICS Processionals need to remain in control of their work and make sure AI is used responsibly
Property Agency and Management Principles Oct 24 Effective Jan 25
2 key sections. principles for each.
Working with Clients
- Honesty and Transparency
e.g., fees, and terms clearly and in writing.
- Professionalism and Diligence
Members must provide accurate, unbiased advice within their competence.
Managing Businesses and Staff
- Effective Management and Policies
Firms must manage operations ethically, apply policies fairly, and maintain a sustainability policy.
- Client Money and Record Keeping
Client money must be protected and accounted for. - Staff Training, Data & Complaints Handling
Firms must ensure staff are trained and supervised, comply with data protection laws, have cyber security in place, and operate a clear, accessible complaints procedure.
Red Book update effective from 31st Jan 2025. what’re the key changes?
🔄 Structural Reorganization of VPS
🌿 Mandatory ESG Integration
🤖 Embracing AI and Automated Valuation Models (AVMs)
📊 Enhanced Valuation Modeling and Risk Assessment
🔐 Strengthened Data Management Standards
With the increasing reliance on diverse data sources, the Red Book now includes:
🌍 Alignment with International Valuation Standards (IVS)
Labour Gov impact on property
🔹 House Building Targets:
🔹 Infrastructure Projects:
🔹 Sustainability Focus:
🔹 Skills Development:
Labour Gov Changes with NPPF?
Labour is overhauling the National Planning Policy Framework (NPPF) to accelerate housing development. Here’s a concise summary:
🏘️ Key Changes to the NPPF
Mandatory Housing Targets: Reinstating compulsory local housing targets to achieve 1.5 million new homes over five years.
Grey Belt Designation: Introducing a new ‘grey belt’ category within the Green Belt, allowing development on underutilized or low-quality land, such as car parks and disused facilities.
London City Hall
Brownfield First Approach:
Previously developed land — typically land that was built on but is now vacant, derelict, or underused.
Enhanced Planning Authority: Empowering professional planners over local committees to streamline approvals and reduce delays.
Infrastructure Integration: Ensuring new developments include affordable housing, local infrastructure, and accessible green spaces.
What is whole life carbon assessment
It’s a method used to measure all the carbon emissions associated with a building across its entire life, including:
Construction
Use
End of life
Beyond life
🏗️ RICS published the WLCA Professional Statement in 2017 (updated in 2023),
It supports net zero goals and informs investment and design decisions.
International Valuation Standards 2024 effective 2025. What’s new?
More emphasis on sustainability/ESG: Valuers must consider ESG if it’s likely to affect value.
Updated definitions: Clarity on “valuation approach”, “assumption”, and “special assumption”.
“I consider sustainability factors where they are likely to affect value, in line with IVS 2024 and Red Book VPS 5/6.”
e.g., Special - “An assumption that is not consistent with, or differs from, those made by market participants generally.”
e.g., Assumption - “A supposition taken to be true without verification, forming the basis of the valuation.”
Key principles of VPGA 8
Material ESG factors must be considered
- Only include in valuation if they are material to market participants or likely to impact value.
- Relevance to value depends on asset type, location, market sentiment.
- Don’t add a separate “ESG premium”.
Instead, adjust: Yields, Rental value / demand, Void periods
Disclose ESG-related assumptions clearly in the report e.g.,
EPC Rating “Assumed that the current EPC rating of C will remain valid and compliant with future legislation until 2030.” (unit 16 Botany).
What is the current presidential team at RICS?
Nicholas Maclean has, temporarily, become acting president of RICS. This follows the involvement of Justin Sullivan as an expert witness in High Court proceedings. He has referred the matter to the Standards and Regulation Board’s regulatory team.
Maureen Ehrenberg is acting president elect.
