UK valuations score best for accuracy says RICS

In its Valuation and Sale Price Report 2008 it said that the majority of UK valuations were falling within 10% of sale prices.

It said 60.4% of UK valuations in 2007 were within 10% of sale prices and 84.5% within 20%. In comparison Netherlands valued 50% of properties within 10% of sale prices followed by Germany with 47.6%, and France. At 40.2%.

This level of accuracy was achieved despite growing market uncertainty due to the severe lack of liquidity in the commercial property market brought about by the global credit crunch. 

The RICS said the UK market witnessed a marked reversal in investment performance in 2007 with the number of properties sold below valuation from September to December almost doubling compared to those sold earlier in the year. 

Sales dropped to a yearly low in October only to rise significantly in November and a year high in December with 'investors being forced to accept lower sale prices in order to free up much needed capital'.

RICS spokesperson Luay Al-Khatib said: 'Business demand in the UK was hit almost immediately following the onset of the credit crunch with tenants having to re-assess risk in the latter part of 2007.

'With banks choking on the credit stranglehold, many investors were forced to sell below the valuation price as opportunists circled for a bargain.

'This annual report is a vital measure of valuations, ensuring that the relationship between valuation and selling price are closely monitored.'