What is a 'Red Book' valuation?

A 'Red Book' valuation is a formal valuation prepared in accordance with the Royal Institution of Chartered Surveyors' (RICS) Valuation Standards, known simply as the 'Red Book'.

The Red Book is a set of mandatory rules that RICS Registered Valuers must follow. It doesn't tell a valuer how to value a property - that's down to training, experience and professional judgement. But it does set the standards the valuer must work to.

These cover ethics, independence, the valuer's qualifications and what a report must contain. The aim is a valuation prepared to a high professional standard, free from conflicts of interest, by someone properly qualified to produce it. Only RICS Registered Valuers can carry out Red Book valuations.

That's why Red Book valuations are relied upon by banks for secured lending, by HMRC for tax purposes, and by lawyers, accountants, charities and other organisations where an independent and credible opinion of value is required.

Clients often ask how this differs from the free 'valuation' an estate agent offers before a sale. Strictly speaking, it isn't the same type of valuation at all. It's a market appraisal - an indication of the price an agent might market the property at, not necessarily what it would achieve. It's also rarely acceptable for tax, lending or accounting purposes.

A Red Book valuation is different. It's prepared by an RICS Registered Valuer working to mandatory professional and ethical standards. It provides a considered opinion of value, backed by evidence and capable of standing up to scrutiny.