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Material Uncertainty Clause Update

The effects and aftermath of the COVID-19 health crisis will impact the work carried out by Registered Valuers in a variety of ways. Inspecting property may be difficult either through their firm’s own internal procedures, government-imposed restrictions or the occupant’s unwillingness to grant access. Access to evidential data such as comparables, may also be less freely available.

 

Through the establishment of the SCSI Materials Uncertainty Forum, we keep under regular review the impact that COVID is having on the property market and transnational levels.  At its most recent SCSI Material Uncertainty Forum meeting, a recommendation that the Clause may no longer be appropriate for the following asset classes was made and instead it may be more appropriate to use Market Conditions clause;

 

Date of guidance issued

Asset Class

13th October 2020

Industrial / Logistics

13th October 2020

Institutional grade primary healthcare facilities

22nd September 2020

PRS/ Multi-Family (excluding student accommodation)

22nd September 2020

Residential

22nd September 2020

Social Housing on long term leases to government, housing bodies or local authorities

 

The Forum will continue to meet frequently on this topic and monitor the level of transactions occurring in our market. For more information on Material Uncertainty and Market Conditions Clause, please click here. The SCSI will provide further updates as necessary.