The sustainability of a property should be considered when a valuation is being carried out, according to the latest guidance issued by the Royal Institution of Chartered Surveyors (RICS). The body pointed out that factors such as a home's energy efficiency and the building materials used should have an impact on its value - and that these things are going to become increasingly important to buyers and vendors alike.
As a result, RICS has released its Sustainability and Residential Property information paper to assist its members in taking such factors into account when deciding what price a dwelling should be put on the market for. Ben Elder, global director of valuation at the organisation, commented: "A property's sustainable status can cover a range of social, environmental and economic matters that can potentially lead to changes in demand and therefore affect value."
Earlier this month, RICS stressed the importance of sustainable assets in a commercial property portfolio for investors, pointing out that any buildings that do not meet new standards being introduced by governments worldwide could be costly to modify or difficult to sell on. Kaye Herald, managing director of the institution in the Asia-Pacific region, noted that tenants are also becoming more demanding when it comes to the sustainability of the space they take on.
- Wednesday 21 September 2011