New rules came into force on 1 May 2024 affecting the way in which Registered Provider (RP) homes are valued.

This insight will focus on the key changes RPs should be aware of and what this means for their portfolio and loan security valuations moving forward.


In October 2023 the Royal Institution of Chartered Surveyors (RICS) published an updated supplement (the Supplement) of its Red Book. This implemented the changes recommended by the Independent Review of Real Estate Valuations, which was published in January 2022. The aim of the updated Supplement is to prevent conflicts, improve transparency and standardise the governance of valuations. The new rules came in to force at the beginning of May, and will affect the way that valuations are undertaken in the affordable housing sector, as well as in other sectors.

Mandatory Valuation Rotations

The Supplement introduces a new mandatory rotation policy which commenced on 1 May 2024. The anchor for the rotation is the asset itself being valued (rather than the client).

The policy sees the introduction of a maximum duration of five years before the rotation of an individual “responsible” valuer and a maximum duration of 10 years before the rotation of a valuation firm. There should be a break of at least three years after rotating away from each engagement.

The policy is retrospective and takes into account the period for which a valuer or valuation firm has valued the asset(s), which may have begun before the start of May 2024.

Until 30 April 2026, valuers may undertake the valuation of an asset which would be in breach of the policy if they are under an existing engagement to do so or where it is necessary to allow time to organise an orderly transfer to a new valuer.

After 30 April 2026, a valuer or firm may only undertake a valuation that would otherwise be in breach of the rule where they are obliged to do so under an engagement that they cannot lawfully terminate (without penalty) or in exceptional circumstances as set out in the Supplement.

Valuation of registered social housing for loan security purposes

The formal RICS policy to rotate valuers does not extend to RP loan security valuations. However, we are already seeing funders including a requirement for valuer rotation in social housing loans and we expect this to become market standard across all funders in the sector.

How Capsticks can help

We would recommend speaking to your valuers and your funders to help you ensure that you ready to adapt to the new requirements, and ensure that you are aware of the specific requirements being imposed by individual funders.

Capsticks aims to be the firm of choice for RPs. We advise over 200 RPs of varying sizes and locations across the country on all areas of housing. In particular, we lead many charging projects for RPs, recently securing over 10,000 properties in a year and almost always achieving MV-T.

If you have any queries around the topics covered by this insight or wish to discuss maximising the effectiveness of your charging strategy, please speak to Susie Rogers, Sarah Darvell or Lucy Bradbury to find out more.