RICS launches new forum on pubco valuations

RICS is inviting interested parties to contribute to a forum group looking into the role of chartered surveyors in the calculation of rents between pub tenants and the pubcos.

Meetings will be held during August which will allow a cross section of industry bodies and interested parties to have the opportunity to individually present their views to RICS; and to explore how the instiution can assist in the process of rent calculation in the pub sector.

With an independent chair Nicholas Cheffings, solicitor and partner at Lovells LLP, the forum plans to explore key issues such as

• The role of Chartered Surveyors acting for landlords and tenants at arbitration
• Would better disclosure of rent calculations at rent review lead to more accurate and cost effective settlements?
• Would there be greater transparency in the sector if Chartered Surveyors had full access to business trading data
• Would access to fuller comparable information help the rent setting process?
• Does the profits method basis of valuation cause differentiation and / or disadvantage to any particular party to a rent review?
• Does the pub sector have any unique characteristics which should be reflected in rental valuation and rent review conduct?
• Will all sides of the industry support a low cost alternative dispute resolution process?

David Rusholme, RICS director of valuation, said: "Chartered valuation surveyors have strict codes of conduct that they have to adhere to if they are to practice under the RICS name.

"We need to examine how surveyors operate in the unique circumstances involved in valuing public houses. In particular we need to explore how our guidance stands up to scrutiny in very difficult trading conditions.

"As such it is right that we take this opportunity to consult with all interested parties to explore what can be done by chartered surveyors to ensure clarity and transparency in this sector."