The Royal Institution of Chartered Surveyors (RICS) has expanded its recommendations for sectors which no longer require a material uncertainty clause, the reason given for the swathe of property fund suspensions in March.
To remove the clause, in addition to referencing the above, valuers must apply a focus to the asset in question rather than generalising and indicate clarity regarding the causes of material uncertainty: "Much depends on the individual circumstances in the jurisdiction, the sector, and the location. It is common for these circumstances to continually change and evolve."
"In the case of the Covid-19 pandemic, while the threat of a pandemic developing was identified some time ago, it is in large part the responses to it which may lead to disruption, e.g. government imposed restrictions or alleviating economic measures, and their various consequences, direct or indirect, which may or will have different durations and impacts on different market sectors."
Of independent valuers removing the material uncertainty clause from the 14 May recommendations, Ben Yearsley, investment consultant at Fairview Investing, said: "It is obviously good news for the property sector that some of the short term uncertainty has been removed and that valuers can start accessing property again.
"However, that could mean that investors start to see falls in property prices as valuers assess the economic damage caused by the lockdown and what that means for demand and price.
"The value of office space will be interesting to watch as so many people have successfully worked from home the last two months - there has to be a knock on impact."