Towards a new valuation model for heritage building assets

Abstract

This thesis explores the current valuation methods used by Surveyors to value historic buildings. This research began after a 'gap' was identified within current valuation methods, the 'missing part' being the inadequate incorporation of the life-cycle costs of the buildings. The cost implications associated with historic buildings in terms of keeping a building in 'good' repair is a significant consideration when considering ownership. More often than not historic buildings fall into disrepair due to the high cost of renewing major components. Often lacking too is an on-going programme of works and the provision of a sinking fund to meet the costs of renewals. The aim of this research are; review the valuation methods used by valuers in the UK to value historic buildings and whether an historic buildings life-cycle cost is included, review the valuation methods used by valuers in other countries to value historic buildings and whether they include building life-cycle costs, discover if there is 'interest and need' for a new capital valuation technique for historic buildings to reflect their life-cycle costs and if so develop a technique. An important part of this study was to investigate how other countries approached these issues and the valuation methods they adopt, together with the financial support available for historic building preservation. This thesis suggests a new capital valuation technique which uses the existing 'five' valuation methods and includes the buildings life-cycle costs. Potentially a new technique would be an ideal addition to the steps within the 'toolkits' used for historic buildings where, at the time of writing, a valuation of the building was excluded. From the results of an international survey of valuers there was evidence of strong demand for a new valuation technique which included an historic buildings' life-cycle costs. The new valuation technique proposed is based on a new valuation model that produces a life-cycle investment capital valuation. The model uses data of the life-span of the key building components and assessing their condition. The new valuation technique then underwent practical testing with a sample of valuers.

Date of Award	Feb 2021
Original language	English
Awarding Institution	University of Portsmouth
Supervisor	Timothy John Goodhead (Supervisor) & Cletus Moobela (Supervisor)