Reversionary properties - valuation methods revisited
||Reversionary properties - valuation methods revisited
||19th Annual European Real Estate Society Conference in Edinburgh, Scotland
||In the last 40 years the UK valuation profession has relied heavily upon the “hardcore”¯ or “layer”¯ method for valuing reversionary properties (under and/or over rented). This approach is not used elsewhere in the world and, prior to the rent freeze of the 1970s in the UK, it wasn’t a principal method in the UK. However, valuers today, particularly in London, use this method exclusively despite it producing erroneous answers in certain cases (over-rented; non normal cash flows). It is the opinion of this paper that the UK property market is now so different from the market that prevailed when this model was introduced that it no longer has a place in the valuers’ armoury of methods to use. This paper looks at a number of case study examples and offers other (more appropriate) options for valuing reversionary interests.
||file.ppt (286,720 bytes)
Post discussion ...
||Parallel Session A3
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