Valuing residential property purpose built for renting
Published July 2018
Effective from October 2018
Reissued May 2023
This professional standard gives guidance on the general approach to valuation that should be adopted for the build-to-rent part of the residential investment sector and recognises that – reflecting market practice – the principal basis should be an income-driven one.
The standard addresses the following:
- form of tenancy
- valuation considerations
- valuation approach
- assessment of gross income
- assessment of operating expenditure
- net income capitalisation
- benchmarking
- aggregate break-up value and
- cash flow analysis.
This document was reissued in May 2023 as a professional standard. It had previously been published in July 2018 as a guidance note. No material changes have been made to the document.