Lately, we've been receiving a lot of customer feedback about the cost of properties, even with the affordable Shared Ownership Government scheme. This concern holds some truth. According to BuzzFeed, homes in the UK are among the most expensive and smallest in Europe. Inner London, in particular, stands out as one of the priciest cities to live in on the continent. However, the crucial question remains: Are our Shared Ownership properties priced fairly?
Our new development SO Resi Farnham
Especially in the past year, owning a home has become increasingly challenging due to rising interest rates and the cost of living crisis. For renters, the situation has been even more daunting. SpareRoom's report indicates that year-on-year rent in Q2 has surged by 15-20%, depending on the location.
RICS Valuation: How We Value Property Your SO Resi Property
There are generally two methods to determine a home's value. One involves consulting an estate agent who evaluates the property based on their market knowledge and experience in the local area. They calculate the estimate considering how much they could sell it for.
However, this approach is not always the most accurate. The value is often inflated as estate agents strive to maximise their returns by selling homes at the highest possible price. The most accurate way to evaluate a home is through a chartered RICS surveyor.
In simpler terms, RICS is considered the ‘gold standard’ for property valuations. Certified surveyors possess greater expertise than regular estate agents, ensuring the valuation's accuracy. Moreover, they remain independent of estate agencies. While we understand that Shared Ownership may still be unaffordable for some people, we want to make sure that we are transparent in how we value our homes. The pricing of each property is done against RICS surveying; in this way, we can make sure that our homes are sold fairly according to the market value.
SO Resi new developments and resale properties are priced against RICS valuation. The valuation from a RICS surveyor will typically include, though not limited to:
- Conditions and features of a home
- Property sizes and measurements
- Level of construction and composition of the home
- Market evaluation and house pricing comparison for the last 6 months
- Location and local amenities valuation
Note: RICS valuations are typically accurate for 3 months only.
If you're looking to get your home valued with an accredited RICS surveyor, check out our recommended panel on our website. You can also read more about the process of obtaining a property valuation.
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Written by the SO Resi In-House Team