Valuation accuracy, variation and bias in the context of standards and expectations

Abstract

Valuation accuracy usually conjures up images of empirical studies of comparisons between sales and valuations and different valuations of the same properties, and a number of references to these studies are included in the paper. However, this paper concentrates on the institutional influences which impact on valuations and their accuracy. The overall aim of this paper is to examine the legal interpretation of valuation inaccuracy in the UK. This might seem a bit parochial in the context of a World Valuation Congress. However, cases in many countries in the Commonwealth form precedents for each other and therefore decisions in, for example, the UK and Australasia, are drawn on by others in reaching decisions. The paper also reaches conclusions which have wider implications for all jurisdictions which have valuation disputes settled in courts, tribunals and any other quasi‐judicial body.