Shared Ownership Valuation
Whether you are buying more shares, selling your home, or reaching full ownership, a RICS shared ownership valuation is the mandatory first step in the legal process. Unlike a standard estate agent’s market appraisal, which is often an informal estimate, a staircasing or resale valuation must be conducted by a RICS-qualified surveyor to provide an impartial "Red Book" report.
This document is the only evidence a Housing Association will accept to set the price of your transaction, ensuring the figures are accurate, evidence-based, and legally compliant. Navigating the 3-month expiry rule and understanding how to challenge a figure that feels too high or too low is essential to ensuring your staircasing or sale remains on track and financially viable in 2026.
A RICS staircasing valuation is the cornerstone of your shared ownership journey, as it dictates exactly how much you will pay for your additional shares. Unlike a standard mortgage valuation or an estate agent's estimate, a staircasing valuation must be conducted by an independent RICS-qualified surveyor in accordance with the 'Red Book' global standards. Because these valuations are typically valid for only 3 months, timing your instruction is vital to ensure your solicitor can finalise the legal transfer before the report expires.
For the majority of leases, they require a new valuation, whether staircasing from 10%, or a simultaneous staircase to 100% and sale. Some newer leases allow you to staircase by 1% and avoid a valuation or solicitors' involvement.
Why Do You Need a RICS Valuation for Staircasing?
A staircasing valuation is a survey which determines the current market valuation of your property. It's required as a first step when you're looking to staircase and buy more shares in your shared ownership property.
By staircasing, you'll increase your equity percentage in your property, and your rent will be reduced by the proportion that you staircase. The housing association requires you to get a RICS Valuation of your property, as prices may have gone up since you bought your share. You have to pay for the valuation yourself every time you staircase, making it more cost-effective to staircase by a sizeable chunk at a time, unless you're on a newer lease which allows incremental staircasing without a valuation.
The RICS "Red Book" Standard: How is your property valued?
The RICS "Red Book" Standard is the mandatory framework that ensures every shared ownership valuation is consistent, objective, and legally robust.
When a RICS Surveyor determines the price of the current market value of the property, this then sets the amount you will pay for your additional share. The determination isn't just their professional opinion; the valuation is based on the RICS Valuation – Global Standards (updated for 31 January 2025), which requires them to use the Comparable Method. This involves identifying at least three similar properties nearby that:
- have sold recently; and
- adjusting their values based on differences in size, condition, and location.
Crucially, the Red Book mandates that the surveyor act as an independent expert, meaning their valuation must be a fair reflection of the open market and provide a "Market Value" accepted by the Housing Association.
Expert Tip - What to Do if Your Staircasing Valuation is Too High
One of the biggest issues is when the valuation comes in higher than you budgeted. This leaves you unable to afford the staircasing. If this happens, this is what you can do:
The "Disregard" Rule
Under the Red Book and most shared ownership leases, the RICS surveyor must disregard any uplift in value caused by improvements you've made (like a new kitchen) to ensure you don't pay for your own upgrades twice. For example, if the property is worth £225,000 with the new kitchen and £215,000 without, the valuer will use the valuation that disregards the work you've done to improve the value.Incorrect or No Comparable Properties
If there is a lack of comparable properties in your local area, you can dispute the valuation by making a formal appeal to the Housing Association. This would also be the case if the comparable property were in a better area that would command a higher price.
Andrew Boast FMAAT
CEO of SAM Conveyancing
What if there aren't enough comparable properties?
When there aren't enough sold comparables available on your immediate street, RICS surveyors follow a strict Hierarchy of Evidence to determine a fair market value. They do not guess the price; instead, they apply professional adjustments to ensure the valuation is legally defensible for your Housing Association.
What is the Hierarchy of Evidence?
The Surveyor's Backup Plan is to follow a hierarchy of evidence, which is as follows:
- Widening the Search: Looking at similar "micro-markets" in neighbouring postcodes.
- Time Adjustments: Using older sales data and adjusting for inflation using the House Price Index (HPI).
- Asset Comparison: Comparing your home to different property types (e.g., using a detached house sale to value a semi-detached) and applying a "weighted deduction."
- Price Per Square Metre: Analysing the internal floor area against broader regional averages.
With any valuation where there aren't enough comparable properties, the scope for getting it wrong increases. You should always double-check the properties your surveyor is using to determine your property's value.
The 3-Month Expiry Rule and Desktop Extensions
A RICS staircasing valuation is not an open-ended document; it is a "snapshot" of the property market and is typically valid for only three months from the date of the report. If your conveyancing has not been finalised within this window, the Housing Association will no longer accept the valuation as an accurate basis for the share price.
You can often avoid the cost of a full new inspection by requesting a Desktop Extension. If you apply within two weeks of the original expiry date, your surveyor can often issue a "Desktop Update" for a reduced fee (or sometimes for free). This involves the surveyor verifying that market conditions remain stable without revisiting the property, effectively extending your "valuation window" for an additional 3 months. To keep your staircasing on track, it is vital to share the expiry date with your solicitor as soon as you receive your report.
What happens during the valuation survey of your property?
The RICS Surveyor must visit your property; they can't complete the valuation remotely. The inspection typically takes 20-40 minutes, and the goal is to assess the specific factors that influence the property's current market price.
- Internal Assessment: The surveyor walks through every room to note the overall size, layout, and condition of the decor. They will record the number of bedrooms, bathrooms, and any additional spaces, such as a utility room or home office.
- External Inspection: They will examine the building's exterior, noting the type of construction (e.g., brick, stone, or non-standard), the condition of the roof, and the presence of any outdoor assets, such as a garage, driveway, or private garden.
- Significant Defects: While this isn't a Level 2 or 3 survey, the valuer is professionally bound to note any "obvious and significant" defects that would impact the value. This includes visible structural movement, severe damp, or a roof in clear need of replacement.
- Improvements Review: This is the most vital part for you. You should provide the surveyor with a list of any authorised home improvements you have made (such as a new kitchen, bathroom, or loft conversion). Under the RICS Red Book, they must disregard the value these have added to ensure you aren't charged a higher price for shares based on your own investment.
Tidy up your property
While clutter doesn't change a valuation, a clean, well-presented home allows the surveyor to see the condition of walls and floors more easily, leading to a more accurate report.
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
Caragh has written extensively for SAM with expertise on sale and purchase conveyancing, the Help to Buy redemption process, equity transfers and deeds, leasehold reform, RICS home surveys, shared ownership, and independent legal advice for specialist mortgage products and ownership structures.
