The IPD Valuation and Sale Price research study has been running for over 20 years and was first undertaken as a collaborative study with the RICS in 2003, in response to the Carsberg report recommendations. This advised that the relationship between achieved sale prices and previous valuations should be monitored on an annual basis. The analysis in the European Summary covers the markets of France, Germany, the Netherlands, and the UK at the all property level and addresses several key questions:
1 How much do sale prices differ from previous valuations?
2 Are differences random or were sale prices consistently above or below the latest valuation?
3 How much did the results differ across the four European markets?
Addressing these questions has involved market adjusting nearly 1,650 market valuations delivered across 2010/11 for average movement between valuation and sale dates and then applying a rigorous set of tests against the corresponding achieved open market transaction prices.
Source : RICS