When looking to raise finance against a UK property, a valuation of some type is usually required. The specific valuation type, though, can be one of several.


Understanding what type of valuation is required by a lender is vital to raising funds for a scheme. We break down some of the most common valuation types and the differences between these methods so that you’re in the know.


Red Book

A Red Book valuation is an extensive formal opinion of value that can be relied upon by the instructing party. It is often requested in instances where a tax calculation or formal legal proceedings are involved. The Red Book, otherwise known as the RICS Valuation – Global Standards, sets out the standards that valuers should follow.

When issuing a Red Book valuation, the valuer guarantees their qualification and the minimum report content. This adheres to accepted and consistent standards, which provides public confidence. The reporting time will vary depending on the type of asset and availability of comparable evidence. All surveyors carrying out Red Book valuations are required to have sufficient professional indemnity insurance as the instructing party will be relying on the valuer’s professional advice.


  • Accurate: Red Book valuations are conducted by qualified valuers who follow strict standards and procedures. This ensures that the valuation is accurate and reliable.

  • Independent: Red Book valuers are independent of the parties involved in the transaction, which means that they can provide an unbiased opinion of value.

  • Transparent: Red Book valuations are conducted in accordance with the RICS Valuation – Global Standards, which are publicly available. This means that the valuation process is transparent and can be easily understood by the client.

  • Acceptance: Red Book valuations are accepted by lenders and other financial institutions for legal purposes. This means that the valuation can be used to support a finance application.


  • Cost: Red Book valuations are usually more expensive than other types of valuations. A large part of this is the amount of Professional Indemnity Insurance that funders requesting Redbook reports require.

  • Time-consuming: Red Book valuations can take longer to complete and turn around than other types of valuations.


A short-form property valuation is a simplified valuation report that is typically used for mortgage and bridging purposes. It is less detailed than a full valuation report, but it still provides an estimate of the property’s market value.

The short-form valuation report will typically include the following information:

  • The property’s address

  • The property’s type and size

  • The property’s location

  • The property’s condition

  • The recent sales prices of similar properties

  • The valuer’s opinion of the property’s market value

The short-form valuation report is typically prepared by a qualified valuer, such as a chartered surveyor. The valuer will use their expertise to assess the property’s value based on the information that is available.

The short-form valuation report is a useful tool for mortgage and short-term lenders. It provides them with an estimate of the property’s value, which helps them assess the risk of lending money against the property.


  • Cost: It is less expensive than a full valuation report.

  • Speed: It is faster to prepare and turn around.

  • Reliability: It is still a reliable way to estimate the property’s market value.


  • Detail: It is less detailed than a full valuation report.

  • Acceptance: It may not be accepted by all lenders.

  • Suitability: It may not be suitable for all types of properties.

Desktop Valuation

Desktop valuation is a method of estimating the value of a property without physically visiting it. A valuer will use various data sources, such as recent sales data, public records, and property tax assessments, to generate a valuation.

Desktop valuations are typically less expensive and time-consuming than traditional valuations, which require a valuer to visit the property. However, they can also be less accurate, as the valuer does not have the opportunity to inspect the property in person.


  • Cost: Cheaper and faster than traditional valuations

  • Speed: Can be done remotely, so convenient for borrowers and lenders

  • Scale: Can be used to value a large number of properties quickly

  • Geographical: Can be used to value properties in remote or inaccessible locations


  • Accuracy: Less accurate than traditional valuations

  • Suitability: May not be suitable for all properties, such as those that have undergone significant renovations or are in unusual locations

  • Acceptance: May not be accepted by all lenders

Automated Valuation Model (AVM)

An automated valuation model (AVM) is a computer-generated estimate of the value of a property. AVMs use data from a variety of sources, including recent sales of similar properties, to calculate their estimates. Lenders often use AVMs to quickly assess the value of a property for lending purposes.

The accuracy of AVMs varies depending on the quality of the data used and the complexity of the property. However, AVMs are generally considered to be a reliable and cost-effective way to estimate the value of properties.


  • Speed: AVMs can provide valuations quickly and easily, which can save time and money for lenders and other property professionals.

  • Cost: AVMs are typically much more cost-effective than traditional valuations, which can save lenders and other property professionals a significant amount of money.

  • Accuracy: AVMs are becoming increasingly accurate, and they can provide a good estimate of the value of a property in most cases.

  • Transparency: AVMs can help to improve transparency in the property market by providing valuations that are based on objective data.


  • Accuracy: They can be inaccurate in some cases, especially for properties that are unique or have unusual features. They also cannot replace the need for a physical inspection of a property, as they cannot assess the condition of the property or the quality of the fixtures and fittings.

  • Suitability: They may not be suitable for all types of properties, such as commercial properties or properties that are being used for investment purposes.

UK Property Investment Valuations

If you are interested in better understanding what valuation method is the most suitable for the type of finance you are looking at, get in touch and one of our advisers can guide you.