A property valuation report informs you of the market value of your home today. Not what you hope it is worth. A surveyor accredited by RICS will visit the property, carry out an internal and external inspection, analyse the local property market, and put a defensible market value figure on paper. The value will be one you can take to a solicitor, a lender, or a court.
Over the past 150 years we have been producing these reports across London and the South East at John D Wood & Co., so we understand exactly what information they contain, what separates the useful reports from those that fall short, and where confusion often arises. This is what you should know.
What exactly is a property valuation report?
It is a formal document that is prepared by a surveyor regulated by the Royal Institution of Chartered Surveyors. It sets out a professional opinion of your property's current market value. The surveyor walks through the property, measures the space, takes photographs, and considers the size, age, location, condition, and layout. Then, using all of that, they compare it against other comparable properties in the neighbourhood.
That last step is more important than most people realise. Two seemingly identical flats on the same road can differ in value by tens of thousands of pounds depending on floor level, aspect, lease length, and whether someone has knocked through to create an open-plan kitchen. Algorithms do not factor in this detail. A surveyor standing in the room does.
This is worth emphasising: a valuation is not a survey. A valuation answers the question "what would this sell for?" A survey answers "what is physically wrong with the building?" Some products combine both. A RICS Level 2 HomeBuyer Report, for instance, often includes a valuation alongside its condition assessment, but a standalone property valuation report is about market value, not structural defects.
What does the report actually contain?
Every RICS-compliant property valuation report will cover:
- Property description: type (detached, terrace, flat, maisonette), approximate age, construction, number of rooms, floor area. Basic facts, but they anchor the whole document.
- Location analysis: the neighbourhood, transport links, schools, local amenities. In London, the specifics genuinely matter: which side of the road, proximity to a park entrance versus a busy junction, whether there is a Crossrail station round the corner.
- Condition overview: not a structural inspection, but the surveyor will flag anything visible that materially affects the value. Obvious subsidence cracks, a flat roof that has seen better decades, that kind of thing.
- Comparable evidence: recent sales of similar properties nearby, which the surveyor uses to build and defend their figure.
- Market value opinion: the number. What your property would achieve if marketed properly at the date of inspection.
- Reinstatement cost: what it would cost to rebuild from scratch, useful for insurance.
- Caveats: any assumptions the surveyor has made, such as vacant possession or the existence of a short lease that could depress value.
The different types of property valuation
They are not all the same, and the differences are worth understanding before you spend money. Below, we take a look at 4 different types of property valuation:
- Mortgage valuation: Your lender arranges this. Its job is to satisfy the bank that the property provides adequate security for the loan. The surveyor's duty of care is owed to the lender, not to you. It will normally run to two or three pages and cannot be relied upon legally. If the valuation comes in below your agreed purchase price, you are the one in an unenviable position: renegotiate, find another lender, or stump up the shortfall yourself. People often ask whether a mortgage valuation is the same as a survey. It is not. Not even close.
- Estate agent appraisal. The free valuation you receive when an agent visits your home looking to win your instruction to sell. It can be a good starting point, though some agents may overvalue in order to secure the listing. There are no regulations governing the figure they give you.
- Independent RICS valuation. The valuation you commission yourself, from a surveyor with no connection to your lender or your buyer. It follows RICS professional standards, and you can rely on it in negotiations, in court proceedings, and in tax calculations. This is the type you need if you are going through a divorce, administering an estate, or redeeming a Help to Buy loan.
- Red Book valuation. A RICS valuation adhering to the RICS Valuation – Global Standards (known colloquially as "the Red Book"). It is the benchmark for formal purposes: probate, court proceedings, capital gains tax, inheritance tax. The methodology and reporting format are prescribed, and any competent solicitor or HMRC inspector will accept it without dispute.
When would you actually need one?
You require a property valuation report more often than you may think, you will require one when:
- Selling: to set an asking price based on evidence rather than optimism or an agent's hope of winning your business.
- Buying as a cash purchaser: without a lender's mortgage valuation to fall back on, commissioning your own independent report is wise.
- Remortgaging or releasing equity: a fresh independent figure gives you a bargaining position when your lender quotes their own number.
- Help to Buy redemption: repaying the equity loan requires a RICS valuation from a surveyor who is RICS-qualified, has no estate agency connection, has no personal relationship with you, and has physically inspected the interior. Those requirements are non-negotiable.
- Shared ownership staircasing: buying additional shares in a shared ownership property requires a RICS valuation to determine the current market value.
- Divorce or separation: both parties need an objective figure. An independent valuation takes the emotion out of the debate, or at least channels it somewhere more productive.
- Probate: the value of the estate for inheritance tax purposes must be established, and HMRC will want to see a proper report.
- Capital gains tax: establishing a base value at a given date for tax calculations.
How much does a property valuation report cost?
For a standalone RICS valuation on a standard residential property, expect to pay somewhere between £300 and £500. Prime central London properties and larger country homes will be more expensive as the surveyor needs extra time on site and the comparable evidence is harder to pin down.
Your mortgage valuation fee will be bundled into your arrangement costs or charged separately, usually between £150 and £1,500 depending on the property's value. You are the one paying, but you do not own the result.
An estate agent appraisal costs nothing because the agent is hoping to earn their commission by selling your property.
If you need a condition report as well as a valuation, it almost always makes more sense to combine them into a RICS Level 2 or Level 3 survey with a valuation supplement rather than paying for each separately.
Property valuation report versus mortgage valuation: Why the distinction matters
People mix these up constantly, and it can prove costly. The mortgage valuation protects the bank. Your property valuation report protects you. The mortgage valuation is cursory and superficial. Your report is detailed and defensible. You cannot take a mortgage valuation to court; you can take a RICS valuation report.
You cannot use a mortgage valuation to argue a price reduction with a seller who will not budge; an independent report showing the property is overpriced carries genuine weight. In the London market, where individual transactions frequently run into seven figures, the few hundred pounds an independent valuation costs is trivial next to the risk of overpaying or underselling.
How to arrange an expert property valuation
The quality of a property valuation report is entirely in the hands of the person preparing it. A surveyor who knows your local roads, understands your building type, and has followed recent sales in your postcode area will produce a figure that holds up in negotiations, in legal disputes, and over time.
At John D Wood & Co., we have been valuing properties in London and the South East since 1872. Our approach is personal: a named valuer sees your instruction through from start to finish, and they understand the market on a street-by-street basis, not just as a postcode.
Book your expert valuation with John D Wood & Co.
Frequently asked questions
How long does a property valuation take?
The on-site inspection usually takes between one and two hours. The written report normally follows within five to seven working days, though that depends on the property's size and the surveyor's workload.
Can I get a valuation without selling my property?
Yes, absolutely. Many homeowners commission valuations for financial planning, inheritance purposes, or simply for their own peace of mind before making any decisions.
What is a Red Book valuation?
It is a valuation prepared under the RICS Valuation – Global Standards, the formal standard required for probate, divorce, inheritance tax, and other legal or financial contexts. When a solicitor or accountant advises you to "get a Red Book valuation," this is what they mean.
Can I check my house value online?
You can get a rough estimate, and many websites offer one. But these tools draw on publicly available data and cannot see your new kitchen, your converted loft, or the crack in your ceiling. For anything beyond idle curiosity, you need a surveyor in the building.
Wondering what your property is worth? Our team covers London and the South East, and we are here to talk through your options with no pressure and no obligation, just honest expertise built over more than a century and a half.
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