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VacantPossession

Things You Should Know About Rics

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RICS is seen by the average house buyer as a dependable, eminent body whose business involves the honest and independent valuation and surveying of residential properties. That is almost entirely due to RIC's own PR machine and has no basis in reality.

Just a little research below the veneer reveals that RICS is very far from the cosy image it wishes to portray. Its almost vice like grip on a huge range of property business activities is evident. There is hardly a single property transaction, from the smallest flat survey to the largest investment in enormous building projects, which doesn't involve RICS in a very close relationship with those it claims it is entirely independent from.

A vital fact which is extremely important to know is that RICS is, in effect, entirely self-regulating. Recently it had the opportunity to become a member of an Ombudsman scheme in England. Here is its own press release about such a scheme:

‘RICS recognises the needs of consumers and we are looking at introducing a

compulsory Ombudsman scheme for all our chartered surveyors, not just those

practicing in estate agency. We have set up a scheme in Scotland, which hope to

learn from, with a view to extending it to the rest of the UK.

'For this reason we will not be making it mandatory for our estate agent members

to sign up to the Ombudsman of Estate Agency (OEA) scheme, since there may

be broader issues to address at the end of the year....

In other words, RICS is claiming on the one hand that an Ombudsman is a good idea....but on the other it is not going to compel its members to subscribe to it.

Next: Office of Fair Trading's comments on the conduct of RIC's self regulation:

Carsberg’s (former OFT Director General) review calls for greater separation between

RICS regulatory and representative functions and recommends that RICS police

chartered surveyors and their firms more effectively.

Here is RIC's response to suggestions that they tighten up their regulations:

I am saddened by the misinformation currently in the public domain which seeks

to undermine the work done by those members and lay participants who work

assiduously to preserve our reputation for effective self-regulation in all our

interests.

Martin Needler FRICS

Chairman of the RICS Professional Conduct Panel (PCP)

Even the Council of Mortgage Lenders, normally extremely cosy with RICS and the two having been in each other's pockets for years in the fixing and manipulation of mortgageable property surveys to be a virtual gift to RICS-only members, has blunt criticism of RICS which considering the virtual CARTEL in existence between them, is pretty devastating:

December 11th 2005:-

The Council of Mortgage Lenders, whose members handle 98% of UK lending, accuses some valuers —

who should independently assess a property’s worth ahead of a mortgage being

agreed — of simply rubber-stamping developers’ asking prices.

It has twice written to the Royal Institution of Chartered Surveyors (Rics)

complaining about the problem, and says some valuers have failed to consider

whether flats were overpriced and may not have known about price cuts secured

on similar properties nearby. It cites an example of a new two-bed flat in

Nottingham initially valued at £250,000. A second valuation, taking into account

prices paid elsewhere in the same development, reduced it to only £170,000 — so

buyers with big mortgages could end up with negative equity if they need to sell.

“So far, we’ve had no reply from Rics,” says Christopher Dean of the CML.

You would have thought, wouldn't you, that RICS was eager to portray itself as scrupulously seperate from any other individual who has a direct and palpable vested interest in high valuations and price inflation. So why is it then, that they choose PHIL SPENCER to write glowing testimonials about themselves even on their own website:

Most people are inexperienced in property dealings and the UK housing market is

complicated to navigate through. In my opinion you will have peace of mind

buying through a firm that self regulates and where the agents follow the best

practice methods laid down by RICS. ...Phil Spencer

RICS members are unique in the property industry as they are impartial,

independent, insured and regulated. In the unregulated domestic property

industry I can’t stress enough how a survey by an RICS member can bring you

real peace of mind. ...Phil Spencer

Note in the second paragraph our Phil proudly refers to RICS as impartial, independent, insured and "regulated". Then in the first paragraph gives the game away by admitting they are "self-regulated". Self-regulation in practice means a complete absence of it. For instance, if I was "self-regulated" then broke into an off-licence and stole my Christmas booze, I could claim that because I regulate myself there is no need to be arrested. Self-regulation in the context of RICS and the cosumer means no regulation at all.

And this is just after a few minutes research. I have no doubt this is just the tip of an iceburg. Please do publish any further info you have on RICS, be it good or bad. I think the public should know!

VP

Edited by VacantPossession

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It has twice written to the Royal Institution of Chartered Surveyors (Rics)

complaining about the problem, and says some valuers have failed to consider

whether flats were overpriced and may not have known about price cuts secured

on similar properties nearby. It cites an example of a new two-bed flat in

Nottingham initially valued at £250,000. A second valuation, taking into account

prices paid elsewhere in the same development, reduced it to only £170,000 — so

buyers with big mortgages could end up with negative equity if they need to sell.

This is just starting to ring true in my local area, "City lifestyle" came to my town in 2002-3.

2y ears down the line, the first of these are now appearing on the re-sell market.

The first 2 re-sells (i.e. not outright flips) being:

Crown Heights

84 Alencon Link,

RG21 7TY

26-Sep-2003 : £190,995

28-Jun-2005 : £165,000

Crown Heights

139 Alencon Link,

RG21 7TW

28-Nov-2003 : £213,995

29-Jun-2005 : £183,000

Sure part of the above can be argued away as new-purchase premium, de-grade in fixtures and fittings, dip in market etc.........But wth 10-15% of this original phase now back on the re-sell market already, I think the above drops are just the tip of the berg......it won't be long before the original purchasers start questioning the valuations provided by 'independent' vested interests.

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  • 339 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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