UK Real Estate Sector Supports Reform to End Unlimited Valuer Liability
The UK real estate industry has welcomed the government’s recent consultation proposing to end the regime of unlimited liability for property valuers working with Alternative Investment Fund Managers (AIFMs). The consultation, which has now closed, forms part of broader efforts to modernize the UK’s financial regulatory framework post-Brexit, particularly the domesticated version of the EU’s Alternative Investment Fund Managers Directive (AIFMD).
Under the current rules, valuers can face uncapped liability for any losses linked to their assessments. Industry leaders argue that this has discouraged qualified professionals from engaging with real estate AIFMs, creating both legal risk and valuation uncertainty in an otherwise robust sector.
“This reform is both necessary and timely,” said a spokesperson from the British Property Federation. “The current liability framework is disproportionate and undermines confidence in a profession that plays a critical role in the UK’s investment landscape.”
Stakeholders are advocating for a more balanced approach, such as introducing capped liability based on contract scope or mandatory professional indemnity insurance. These measures aim to maintain accountability while making the valuation profession more attractive and sustainable in the long term.
While some investor representatives have voiced concerns about maintaining valuation quality, there is broad consensus that the existing rules are no longer fit for purpose. Properly designed reforms could improve both market confidence and the availability of skilled valuers.
The government is expected to publish its response to the consultation later this year. Should the proposed changes be implemented, they may pave the way for a more competitive, fair, and well-regulated real estate investment environment in the UK.
