A Red Book valuation is a formal opinion of a property’s value, prepared by a RICS Registered Valuer in line with RICS Valuation – Global Standards, the rules every RICS valuer must follow. It states who the valuation is for, why it is needed, the basis of value, the valuation date, the assumptions made and the evidence relied on, so that a lender, HMRC, a court or another third party can rely on the figure.
This guide explains what the Red Book is, when you need a Red Book valuation, what the report contains, and how it differs from a mortgage valuation, an estate agent’s appraisal and a survey.
What is the Red Book?
“The Red Book” is the everyday name for RICS Valuation – Global Standards, published by the Royal Institution of Chartered Surveyors (RICS). The name comes from the colour of its original cover. It sets mandatory rules for how RICS members and RICS-regulated firms carry out and report valuations, and it builds on the International Valuation Standards, so a Red Book valuation follows principles recognised around the world.
The standards cover the whole job: agreeing the terms in writing before work starts, the valuer’s independence and competence, how the property is investigated and what the final report must say.
Who can carry out a Red Book valuation?
A Red Book valuation must be carried out by a RICS Registered Valuer: a RICS member registered under the RICS Valuer Registration scheme, which RICS monitors. The valuer must be independent of the property and must declare anything that could affect their objectivity before work starts.
Sterlingworth Surveyors is a RICS-regulated firm (Firm Registration Number 850747), and our RICS residential valuations are carried out by RICS Registered Valuers.
When do you need a Red Book valuation?
You need one when someone else has to rely on the figure, or when a formal, evidenced value matters for tax or legal reasons. Common reasons include:
- Probate and inheritance tax. Executors must report the market value of the property at the date of death. A probate valuation gives HMRC an evidenced figure and makes a challenge less likely.
- Divorce and separation. A matrimonial valuation gives both parties, their advisers and, where needed, the court an independent figure to work from.
- Shared ownership. Providers normally require a RICS valuation before you buy a bigger share or sell. See our shared ownership valuations.
- Help to Buy equity loans. To repay all or part of a Help to Buy equity loan, Homes England asks for a RICS valuation of the home. See our Help to Buy valuations.
- Tax and transfers. Where the value at a particular date is needed to work out tax, or when a share of a property is transferred between family members.
- Company accounts. Businesses that hold property may need valuations for financial reporting.
- Commercial property. Buying, selling, lending against or reporting on offices, shops, industrial units and mixed-use buildings. See our commercial valuations.
If you only want a rough idea of what your home might sell for, an estate agent’s free appraisal is usually enough. A Red Book valuation is for when the number has to stand up to scrutiny.
What does a Red Book valuation report include?
The Red Book sets out what every valuation report must contain, so you know what you are getting. The report states:
- who the report is for, and who else may rely on it
- the purpose of the valuation
- the property valued and the interest being valued, for example freehold or leasehold
- the basis of value, usually market value
- the valuation date
- the extent of the inspection and any other investigations
- the information relied on and where it came from
- any assumptions and special assumptions
- the evidence and reasoning behind the figure
- the valuation itself
- any restrictions on how the report may be used
- a statement that the valuation complies with the Red Book, signed by the valuer with their RICS status
What does “market value” mean?
Most Red Book valuations use market value. In plain terms, it is the price the property would be expected to sell for on the valuation date, between a willing buyer and a willing seller, after proper marketing, with both acting knowledgeably, prudently and without pressure. It is not the asking price, the price you hope for or the price a rushed sale would achieve.
Some valuations use a different basis or a special assumption, for example valuing a property as if building work were already finished. Any special assumption must be agreed in advance and stated clearly in the report.
Red Book valuation vs mortgage valuation vs estate agent appraisal
| Red Book valuation | Mortgage valuation | Estate agent appraisal | |
|---|---|---|---|
| Who it is for | You, and anyone named in the report | Your lender | You, as a guide to marketing |
| Carried out by | A RICS Registered Valuer | A valuer instructed by the lender | An estate agent |
| What it is used for | Probate, divorce, shared ownership, tax, lending and legal matters | Deciding how much the lender will lend | Setting an asking price |
| Evidence shown | Full reasoning and comparable evidence | Usually a short summary, if you see it at all | Rarely more than a figure or range |
| Can you rely on it? | Yes, for the stated purpose | No, it is for the lender | No, it is a marketing opinion |
For more on how lenders’ valuations work, read mortgage survey vs RICS survey.
Is a Red Book valuation the same as a survey?
No. A valuation tells you what a property is worth; a survey tells you about its condition. The valuer takes condition into account when forming a view of value, but the report does not set out defects and repairs the way a survey does.
If you are buying a home, you usually want a survey for the condition. A RICS Level 2 survey can include a market valuation, which covers both in one visit.
How much does a Red Book valuation cost?
A RICS Red Book valuation starts from £275 for properties worth up to £400,000. All fees include VAT.
The fee depends on the value and type of property and what the valuation is for. We confirm a fixed fee in writing before you instruct us.
How does a Red Book valuation work?
- Agree the terms. Before any work starts, we confirm in writing the purpose, the basis of value, the valuation date and who can rely on the report. The Red Book requires this.
- Inspect the property. The valuer visits and notes the property’s size, layout, condition and features. Any limits on the inspection are agreed in advance and stated in the report.
- Research the evidence. The valuer analyses comparable sales and current market conditions, adjusting for the differences between each comparable and your property.
- Report. You receive a written report with the figure, the reasoning and the evidence, signed by the Registered Valuer.
Red Book valuation: frequently asked questions
Is a Red Book valuation the same as a RICS valuation?
In everyday use, yes. When people ask for a “RICS valuation”, they usually mean a formal valuation by a RICS Registered Valuer that follows the Red Book.
Do I need a Red Book valuation for probate?
The law does not say a probate valuation must follow the Red Book, but HMRC can question a figure it thinks is wrong. An independent RICS valuation, with the evidence set out, is the most reliable way to support the value you report.
Can I use an estate agent’s valuation for probate?
You can, but HMRC may ask how the figure was reached, and an agent’s appraisal rarely shows its evidence. If the estate is close to an inheritance tax threshold, or the property is unusual, a RICS valuation is the safer choice.
How long is a Red Book valuation valid for?
A valuation is given at a specific date, so it does not formally expire, but it becomes less reliable as the market moves. Some organisations, such as lenders and shared ownership providers, set their own limit on how old a valuation can be, so check with them before you instruct.
Can a Red Book valuation be done without visiting the property?
Sometimes. The Red Book allows a valuation with a restricted inspection, or none, where this is agreed in advance and the limits are stated in the report. Whether that is acceptable depends on who will rely on it.
Can the valuation be for a date in the past?
Yes. Probate, tax and some legal matters need the value at an earlier date, such as the date of death. The valuer uses market evidence from around that date.
Arrange a Red Book valuation
Tell us what the valuation is for and about the property, and we will confirm the right type of valuation and a fixed fee.
