Every property on the Property Partner platform is inspected and valued prior to acquisition by an external, RICS accredited chartered surveyor. Once acquired, properties are valued periodically on a desktop basis by the surveyor, tracking their potential open market sale price, which underpins the value of every Property Partner investment. An investment’s guide share value is based on the surveyor’s latest assessment of the open market value of the property, with adjustments for gearing, amortised purchase costs and potential tax on any capital gain.
To date we have commissioned external surveyors to re-value all residential properties on a quarterly basis. For the past two years, the residential property market has proven extremely stable, with prices growing, albeit at a more moderate rate than previously. Furthermore, individual properties tend to reflect a steady value until clear evidence emerges of a noteworthy change, principally based on recent transactions of comparable properties in the local area. At this point, the surveyor will adjust their assessment of value, often resulting in a bigger change in one step, than the recent movement in local average house prices.
Our property revaluations have reflected both wider market stability and the pattern of individual values remaining steady for periods of 6-12 months, before experiencing a more marked change. For example, in the last quarterly revaluations at March 2018, we saw 63 out of 93 held constant.
Given that a minority of property values are changing each quarter, alongside the cost of commissioning external valuations, we have decided to move to a six-monthly re-valuation schedule of 31st March and 30th September for all residential properties. The next property re-valuation will take place on 30th September 2018, with the results published on 5th October 2018.
PBSA and commercial properties on the platform are re-valued annually on 30th September 2018, with the
results published on 5th October 2018.
If you would like to discuss this in more detail with a member of our team, please call us on +44 (0)20 3696 5600 or email us at support@propertypartner.co.