Valuers are set to lift material uncertainty clauses for leisure and hospitality assets valued on trading potential, including hotels.
RICS’s latest recommendation to valuers comes eight months after all other MUCs were removed on UK valuations, including retail.
RICS stressed that discretion “in all cases remains with the valuer”. The organisation also advised valuers to highlight the importance of valuation dates, in line with the potential for market conditions to shift rapidly to changes in the control or future spread of Covid-19.
In light of the advice, the RICS’s material valuation uncertainty leaders’ forum will now meet on a less regular basis. However, it will continue to monitor the market and convene at short notice to consider significant events.
The forum, which includes JLL, CBRE and Savills, was set up last year to assess the pandemic’s impact on valuation assignments.
The news comes as the next step of the government’s roadmap out of lockdown goes ahead on 17 May. Indoor hospitality reopenings form a key part of the changes.
See also: How the industry collaborated to lift material uncertainty clauses
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