This course seeks to build on the material covered in Real Estate Valuation and Appraisal. It seeks to develop the understanding and valuation skills of participants by examining the complexities valuation surveyors commonly experience in practice.

Classes to run in Semester 2 and delivered in 3 hourly blocks, once per week, over 6 consecutive weeks.

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Assessment:

The course will be formally assessed by means of valuation report (maximum 2,500 words) based on a series of valuation and appraisal problems relating to different sectors of the market and in different locations.

The aim of this course is to develop an in-depth understanding of valuation and appraisal methods through the valuation of more complex situations that valuation surveyors commonly experience.

In accordance with the specific and evidenced competency requirements of the accreditation body (RICS), by the end of the course, participants should be able to:

■ demonstrate an in-depth knowledge and understanding of the need to collect data, analyse and define the needs of clients while articulating the purposes and mandatory requirements of valuations, the importance of the Red Book and the reasons for the RICS introducing the RICS Valuer Registration System.

■ search different sources of transaction and market data, collate and present this information in a meaningful format and know how to store this data in an appropriate manner.

■ apply the appropriate UK and international standards and guidance relating to the measurement and valuation of property, and fully understand the basis on which measurements should be undertaken for different property types in the valuation and appraisal process;

■ build premiums, and other future costs and receipts into their valuations;

■ understand the practices relating to landlord and tenant, and how these impact on the valuation process;

■ appreciate the possible roles and duties of a surveyor as an expert witness and/or an advocate in the rent review process, and differentiate between adjudication, independent expert determination, arbitration and litigation.

■ understand that net effective rents should be used in valuations and apply current practice.

■ advise clients on the financial implications of surrendering and renewing a leases and the commercial lease terms they negotiate;

■ recognise that most rental incomes are paid quarterly in advance, and not annually in arrears as previously assumed in Real Estate Valuation and Appraisal, and compute quarterly in advance cash flows in traditional and contemporary valuations that handle these cash flows in an appropriate manner;

■ contribute to the debate surrounding the use of traditional and contemporary valuation techniques, and the latest issues related to valuation practice;

■ critically evaluate different valuation methods and understand how they have evolved.

■ differentiate between gross and net initial yields;

■ solve valuation and appraisal problems using the traditional methods, shortened explicit cash flow model and DCF by formula approach;

■ appraise development and investment options building in real life assumptions such as income voids, planning capital expenditure, breaks, incentive and gearing;

■ critically appraise developments in valuation techniques, such as automated valuation models; and

■ examine the background to compulsory purchase, the Acts of Parliament that grant compulsory purchase powers and the basic principles of compensation.

Students must submit at least 75% by weight of the components (including examinations) of the course's summative assessment.

Minimum requirement for award of credit for students on MSc Real Estate and MSc in International Real Estate & Management is D3 or above.

University standard regulations apply to students on other qualifications.