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Paper eres2012_011:
Reversionary properties - valuation methods revisited

id eres2012_011
authors Nick French
year 2012
title Reversionary properties - valuation methods revisited
source 19th Annual European Real Estate Society Conference in Edinburgh, Scotland
summary 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.
series ERES:conference
type normal paper
content file.ppt (286,720 bytes)
discussion No discussions. Post discussion ...
session Parallel Session A3
last changed 2014/10/21 21:51
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