23. Hot Topics Flashcards

Question

RICS Professional fees

Answer 1

RICS professional fees are increasing by a baseline of 3.5% for 2026 to keep pace with the UK's rate of inflation, following a multi-year freeze.

Answer 2

June 2025 Nick Maclean and Justing Young spoke. * Value for money for members. * Creating an inclusive and skilled profession * Sustainable future

Answer 3

Dec 2024 A Private Member's Bill is proposing to replace the current system with an independent Office of the Whistleblower to oversee cases and enforce standards, but its passage is uncertain without strong government backing.

Answer 4

2026 business plan approved in Nov 2025. Nick Mclean - presidential manifesto "Together Towards Tomorrow" Business plan is underpinned by the Five future foundation: SAVVM Five objectives: 1. Enhance member value 2. Promote D&I 3. Lead on sustainability issues 4. Strengthern public trust in profession 5. Strengthern global leadership

Answer 5

In early 2025, RICS President Justin Sullivan referred himself to the RICS Standards & Regulation Board after his testimony as an expert witness in a High Court case (involving a “moth infested mansion”) was criticized by the judge. Nick Mclean is now president elect.

Answer 6

COP30 – Conference of the Parties Mon, 10 Nov 2025 – Fri, 21 Nov 2025 Brazil

Answer 7

The UK Government's Housing and Regeneration Agency focused on increasing the supply of quality, affordable homes Sponsored by the Department for Levelling Up, Housing and Communities (DLUHC). 1.Unlocking land 2. Providing grants 3. Promoting innovation

Answer 8

In June 2025, the UK government unveiled the National Housing Bank, a new public financial institution operating as a subsidiary of Homes England. This initiative is part of the government's broader strategy to address the housing crisis by facilitating the construction of over 500,000 new homes across England. The bank is supported by £16 billion in public investment.

Answer 9

* Housing Target: Labour aims to deliver 1.5 million homes by 2029 * Renters Rights Act 2025 * The Leasehold and Freehold Reform Act 2024 * Planning and Infrastructure Bill 2025 * A new 10-year, £39 billion Social and Affordable Homes Programme (SAHP) 2026 to 2036 * Introduced Five-Year Rent Settlement

Answer 10

* Aimed at improving the rights of leaseholders in England and Wales. * Royal Assent: The Act became law on 24 May 2024 Includes: * Make it easier and cheaper for leaseholders to extend leases or buy their freehold. * Increase lease extension terms to 990 years for both houses and flats. * Ban the sale of new leasehold houses, except in limited circumstances. * Scrap the two-year ownership rule before leaseholders can extend or buy their lease. * Cap or eliminate ground rents and ban excessive insurance commissions. * Improve transparency around service charges and estate management fees. * Expand Right to Manage (RTM) eligibility by increasing the commercial floor space threshold from 25% to 50% Some freeholders (e.g. Cadogan Estates) have launched High Court challenges, arguing that the Act infringes on property rights under the European Convention on Human Rights.

Answer 11

Bill: A proposal for a new law. It’s not a law yet. Act: A Bill that has been approved by Parliament and received royal assent becoming an enforceable law. (First reading, second reading, committee stage, report stage, third reading, House of Lords, Consideration of Amendments, Royal Assent)

Answer 12

The Peter Gray Review, published in 2022, proposed 13 recommendations to improve trust and relevance in real estate investment valuations. Including: 1. Adopt DCF as the principal valuation model 2. Implement valuer rotation policies 3. Enhance ESG integration in valuations 4. Establish a Quality Assurance Panel 5. Create a Valuation Compliance Officer role 6. Promote diversity and inclusion in valuation 7. Separate valuation and advisory functions - avoid conflict of interest 8. Strengthen Red Book compliance 9. Improve transparency in valuation assumptions 10. Encourage use of multiple valuation methods 11. Mandate sensitivity analysis 12. Review outdated guidance notes 13. Clarify regulated purpose valuation rules

Answer 13

From UK National Supplement to the Red Book, effective 1st May 2024: * Maximum engagement period: 5 years per valuer on a single mandate. * Maximum total period: 10 years for any valuer on the same client mandate. * Mandatory break: Minimum 3-year break after rotation before the valuer can be reappointed. * Conflict of interest rule: If a firm’s agency team introduced the property, it cannot act as valuer for 12 months. * Fee disclosure: Must declare if client fees exceed 5% of total annual income. * Record keeping: All preliminary advice, drafts, and client discussions must be documented.

Answer 14

Levitt Review (2021): To investigate governance failings and the suppression of a critical audit report. Exposed serious governance breakdowns at the RICS. Bichard Review (2022): Purpose: To reform RICS governance, culture, and public interest focus following the Levitt Review. Made 36 recommendations in 7 key areas. Peter Pereira Gray Review (2021-2022): To improve valuation standards and processes within RICS.

Answer 15

* Published Nov 2025 * The 2025 Sustainability report aims to assess progress of the sector in adopting more sustainable approaches. The report highlights: 1. The SKILLS GAP remains a concern for the construction industry, particularly in the context of reducing whole life carbon, minimising impact on biodiversity and embedding circular economy principles throughout the project. 2. The role of POLICY INTERVENTIONS to help the built environment reduce its emissions. 3. WLCA must become standard practice. 4. The RICS Sustainable Building Index (SBI) shows that demand growth for green buildings has moderated in the last 12 months.

Answer 16

President - Nick Maclean President Elect - Maureen Ehrenberg Senior Vice President - Susanne Eickermann-Riepe

Answer 17

New member app launched Feb 2026. Helps members access tools they need and update their CPD.

Answer 18

* RICS standards and regulation board published updated RICS CPD framework in May 2025 – take effect Jan 2026. * Encourage members to undertake CPD that is relevant to their practice. * If complete training programme like Master’s degree, members can forward up to 15 CPD hours to next year. * Mandatory topics covered every 3 years (ethics, sustainability, and data, technology, and AI) * Members must declare CPD is relevant and fulfils obligations.

Answer 19

Collaborating with grassroots and charitable organisations through the 'Inspired to Hired' platform on RICS Recruit to increase awareness and access to the built and natural environment.

Answer 20

Led by the Entry and Assessment Steering Group (EASG) (now concluded). Assessment Review Final Report in 2024 The SRB has now established a Programme Design, Implementation and Oversight Group, responsible for designing and delivering the new assessment framework.

Answer 21

Jan 26 - RICS published the fourth edition of its global professional standard on ESG and sustainability in commercial property valuation. Effective from 30 April 2026 New jurisdiction-specific sections for the UK, EU and Australia Clarifies distinction between valuation and strategic ESG advice. A consolidated global list of typical ESG-related KPIs.

Answer 22

National Living Wage (NLW) Increase: The NLW will rise by 4.1% to £12.71 per hour from April 2026. No significant new social care funding announced in 2025. Employer National insurance contributions increased and salary level at which you start paying decreased - increase Op costs for operators. No changes to SDLT.

Answer 23

1) Surveyors acting as Expert Witnesses - 5th edition (2025) 2) Countering Bribery Corruption Money Laundering and Terrorist Financing (2025) 3) ESG and sustainability in commercial property valuation (2026)

Answer 24

- 10 year programme - £39Bn - Serves as the primary mechanism for affordable housing grant funding in England (gifts) - Alongside this, the newly established National Housing Bank, a publicly owned subsidiary of Homes England (low interest loans - 0.1%) Bid to Homes England outside London and the Greater London Authority inside London.

23. Hot Topics Flashcards

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