RICS Draft Update to the Global Red Book

Red Book Global Update 2022 - Proposed Changes

VPGA 2 Secured lending

VPGA 2 Secured lending

6.1 Sustainability and ESG factors (see VPGA 8) can be a significant market influence and valuations for secured lending should always have appropriate regard to their relevance to the particular assignment.

6.2 (b) (i) Additional report contents should include: ...comment on maintainability of income over the life of the loan (and any risks to the maintainability of income), with particular reference to lease breaks or determinations and anticipated market trends - this may well need to be considered in a broader sustainability and ESG context, such as potential future cost liabilities related to meeting regulatory and investor requirements...