Flats: Valuation
The question
To ask the Secretary of State for Housing, Communities and Local Government, if she will make an assessment of the potential merits of permitting shared ownership staircasing valuations to be (a) appealed or (b) negotiated by shared owners, using evidence of significant local variations between (i) RICS valuations and (ii) actual sale prices of (1) similar or (2) identical properties.
Answered by Matthew Pennycook
The price paid by shared owners for staircasing is based on the property's full open 'Market Value' (defined in the shared ownership model leases) as determined by an independent Royal Institution of Chartered Surveyors (RICS) valuer.
RICS valuations will include the use of comparable data from recent sales of similar properties in the locality. They will also account for the property's condition and any home improvements, meaning that shared owners do not have to pay a higher price for staircasing as a result of improvements that they have made to the home.
Valuations are normally final and cannot be challenged. However, if in exceptional circumstances the 'Market Value' of the property has not been properly assessed, then a request for a revaluation could be made by the shared owner or the provider.
A RICS valuation is not required on 1% staircasing transactions; instead, the House Price Index is used to determine the price to be paid by the shared owner.
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