MSc Research Dissertation

EDINBURGH NAPIER UNIVERSITY

SCHOOL OF THE BUILT ENVIRONMENT
BSV11120: DISSERTATION

DISSERTATION PROPOSAL FORM

This form must be completed and signed by both yourself and if possible your
proposed supervisor. It must be returned to the School Office, marked clearly for the
attention of Mark Deakin (Module Leader for the Dissertation).

The Module Leader shall advise students which member of staff would be a suitable
supervisor for the project they have in mind.

Name of Candidate (Block Capitals)……

Matriculation Number …………………….

Course………………………………………MSc Property Management and Investment

1. Title of Dissertation:

An Investigation into the Accuracy of Commercial Property Valuations in the UK

2. What question(s) is being investigated?

 To what extent do valuations differ from actual sale prices?
 Are differences random or are valuations consistently higher or lower than
actual sale prices?
 Do differences fall within the +/-10% level of accuracy recommended by RICS?
 What factors may influence the level of accuracy?
 Are there any market or structural characteristics which may explain the
differences observed?
 To what extent can these factors be managed in order to minimise their effect
on accuracy?

3. Why is your title worth investigating?

Valuations form the basis of important decision-making processes for example:
loan security, rental purposes and balance sheet purposes. They are widely
used to assess the merits of a property and to estimate the ‘worth’ of an
investment. Given the key role played by valuation in the property market there
is a natural concern amongst property professionals about the reliability of
valuation. This paper will add to the existing body of research and will attempt
to identify what factors cause differences between sale price and valuations and
suggest how such factors may be managed to minimise error.

4. Previous Research on the subject

Hager and Lord (1985) criticise the level of accuracy in UK valuations whilst the
empirical studies by Brown (1985), Cullen (1994) and Matysiak and Wang
(1995) provide varying degrees of support for the accuracy of valuations.
Further research is provided by IPD/ Drivers Jonas who produce an annual
report, documenting the levels of accuracy in the UK and more recently within
Europe. The possible causes of inaccuracy have been investigated by Brown

BSV11120 Module Guide

 MSc Research Dissertation

(1992), Blundell and Ward (1993) and McAllister (1995). Two major publications
which highlight the key issues are the Mallinson Report, 1994 and the Carsberg
Report 2002.

5. What literature shall your dissertation draw upon (please list the books,
journal and conference papers)
The dissertation will draw upon the research mentioned in Q4 above as well as
the following :

Books: Sekaran, U, (2003), Research Methods for Business: A skill Building

Approach
Baum A and Crosby, N, 2008, Property Investment Appraisal
Crosby et al 2003, Valuation Accuracy
Isaac, D, 2002, Property Valuation Principles
Mallinson, M, 1994, Commercial Property Valuations

Journals: Journal of Valuation

Journal of property Research
The Appraisal Journal
Real Estate Finance
Estate Gazette
Property Week

Conference Papers : - Cullen (1994) – Accuracy of Valuations Revisited -

“Cutting Edge” Conference, London.
- Johnson and Bauerly ( 1993), Accuracy and Reliabity of
Commercial Real Estate Appraisals, ARES Conference.
- Annual Valuers’ Conference, China 2009

Internet Sources: Investment Property Forum (ipf.org)

RICS (rics.org)
Society of Property Researchers ( sprweb.com)
DTZ research
GVA Grimley

6. Proposed Methodology:
A questionnaire will be drawn up and sent to valuation professionals from a
variety of surveying practices in the UK, ranging from local firms to large
national companies. The questionnaire will ask the valuers to report on the
level of accuracy in their firm and identify factors which may have attributed to
this outcome. This data will then be compared with existing research to identify
any correlations which may exist and suggest possible ways of improving
accuracy and minimising error.

7. Data to be used:
a) Primary research in the form of a questionnaire. The Questionnaire will be
distributed to property companies throughout the UK to measure the difference
between valuations and the actual sale price of commercial property.
b) Previous academic research into Valuation Accuracy

8. Data source(s)
a) Questionnaire distributed to property companies throughout the UK.
b) IPD / RICS Research and Internet Search

BSV11120 Module Guide

 MSc Research Dissertation

9. Statistical techniques and/ computer package(s) to be used:

To be confirmed

10. Expected Outcome:

 Establishment of accuracy levels within individual property companies.
 Identification of similarities of accuracy levels between the companies.
 Identification of correlation between results from sample and existing academic
research.
 Identification of key factors and situations which may present greater risk of
inaccuracy.
 Suggestions as to how the valuation process may minimise the effect of these
factors.

End of Extract….

BSV11120 Module Guide