Tag Archives: RICS

February 6, 2012

Small is beautiful?

By Tim GARRATT

You might remember that am an licensed assessor on the Assessment of Professional Competence for the RICS. I sit a couple of times each year to quiz students on their competences – and decide if they are worthy of the letter MRICS.

It is always interesting to compare the quality of candidates. You can usually tell those who work for the big firms – they have a fairly formulaic approach, they are well prepared and have been coached. There’s nothing wrong with that. Candidates from smaller firms are usually different – not quite the opposite of their counterparts in the big firms, but not far off. As candidates are judged on their stated (and pre-agreed) competences each have an equal chance of passing.

But sometimes I am frustrated by the process itself. I think we are in danger of producing almost robot like candidates. It’s a bit like our schools where we teach to test. Whilst that might be good if you work in a narrow field, it’s not always what we need in the profession. We don’t necessarily produce all-rounders and this is, I think a great pity.

When I have done work with Nottingham University one f things that always strikes me is their need to have students to think. It is about students trying to find solutions. The formulae don’t work in this environment.

I do think that we need to go back to having more rounded surveyors, ones who can think independently and find solutions – rather than rote learners. Our world is changing, there’s little point in us teaching the next generation of surveyors just one set of skills = they are going to, more than ever, need to be multi-skilled.

Unfortunately for the current crop of students the choice of whether a big, medium or small firm might be rather academic – it’s basically wherever there is a job…

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January 31, 2012

We need a policy for that?

By Tim GARRATT

Twice last week I came across the world of Policies.

A few years ago, when it was fashionable, I toyed with the concept of my firm becoming registered for BS5750, now ISO9001. It was becoming a ‘badge’ which many people had latched onto – those procuring work had an easy question – “are you registered for BS5750?”. So because we were being asked we thought we needed to do it. I had, in fact, come across it many years before – my fathers business was engineering and they had been registered for many years.

Whilst it fit the engineering world it certainly didn’t sit comfortably with the world of a multi-disciplined surveying practice. We eventually came to the conclusion that it was forms for forms sake. It was a system which got in the way of what we did, rather than help it. We have discipline in lots of ways (mostly driven by our professional Institution) – but these are measured and relevant.

Then last week I heard mention of writing a Policy for some work that my son was doing. He works in a school and they divide the work out on an amicable basis, depending on who has time and who has the skill set. It’s a low tech solution, but works in a small team. But someone had suggested to him that he should write a Policy so that they made sure that the division of work was fair, that work was capable of being prioritised an that the right people were employed. The suggestion came from someone in the NHS.

Whilst it is not for me to criticise the NHS (I might need them one day!) I do wonder if we have created such a complex animal that it need rules and processes for everything. I figure that it probably does.

But we don’t always need a process, a policy or a set of forms. Sometimes we just need to speak to each other and agree on who is doing what?

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January 20, 2012

Valuation – an art or a science?

By Tim GARRATT

I think I know the answer to this. It is a (black) art. But it does have a bit of science (maths) behind it. It is not a precise science.

When I was doing some research last year with the University of Nottingham, I was surprised about how they scrutinise quite scientifically their work. They test, test and test again. They want to find precise answers. It is a very scientific approach.

Valuation is not.

My Institution have announced that in 2013 they will issue a re-written Red Book. The Red Book is our bible – which applies mandatorily to much of the valuation work I undertake. It is prescriptive to the extent that it covers the process of valuation and sets out some key principles. It is useful in setting a standard.

But the latest changes could be interesting. There is a suggestion that the Banks are unhappy that we didn’t spot the crash – or at least alert them to the fact that the market was over-heated. It looks like the ‘new’ Red Book will ask for more commentary and more scenario building. Future value prediction could be asked for. And this is what I am worried about.

I am not a mind reader. A valuation is a snap-shot. It is an opinion on a given date. There are lots of assumptions. Quite a lot of our reports are taken up with them. Some clients ask me why the reports are 20 pages long – they want the 2 pages with the description and ‘number’ on. The rest is academic! When I started out, we used to provide a 2 page ‘valuation certificate’. I’m not suggesting that we return to those days, but our reports are going to get longer. The only true value is when a property sells – willing buyer, willing seller et al. On other occasions we are giving an opinion.

My concern is that we are moving away from opinion. As I have said before, people pay me for my opinion – not my doubts. Somehow, I think such change might raise lots of doubts?

1 comment   |  tags: , , , | posted in Business, Nottingham

December 15, 2011

Mary Portas – predictable and fluffy…

By Tim GARRATT

I blogged before that we knew the self-styled Queen of Shops was going to publish her answer to the doom and gloom on Britain’s High Street. Her advice to the Prime Minister was apparently free. It was published this week – by way of a list of 28 groovy ideas to get us all spending our hard-earned wonga at the shops again.

Much of it looks to me to be a bit blindingly obvious. Some is naive – allowing shifts between Use Classes more easily is a recipe for Planning disaster.

But the one that made me smile was number 18, “Encourage a contract of care between landlords and their commercial tenants by promoting the leasing code and supporting the use of lease structures other than upward only rent reviews, especially for small businesses”.

A contact of care? With a pink bow? And chocolates?

There is a serious aspect to what she says – she regurgitates the ‘leasing code’ – which has existed for some time. The Code sets out some basic ‘rules’ and tries, admirably, to suggest best practice. If you are so minded you can download it here.

I mentioned the final interviews I carry out for the RICS here – one of the questions we often ask candidates is their knowledge of ‘the Code’. But the supplementary question is to ask where they have used it. Almost without exception they haven’t (although the ‘correct’ answer is to say you have had regard to it!)

What, in essence, we are supposed to do is offer ‘menu pricing’ – in other words (as an example) you can have upwards and downwards rent reviews if you pay more rent at the start… Not many (none?) go for that one.

There was a time when upwards only rent reviews were seen as a bad thing – but that was in the days of 25 year leases – with reviews every five years. Today the average lease length is currently 7.6 years and even then we often see break clauses. The argument has therefore ‘gone away’.

To that end I would suggest that Ms Portas is somewhat out of touch with what is actually happening in the market. And that is worrying if the PM is listening to her?

3 comments   |  tags: , , , , , , | posted in Business, Grumpy Old Man!, Nottingham

December 1, 2011

The RICS APC Autumn session 2011

By Tim GARRATT

It seems like only 5 minutes since I was at Cheltenham Racecourse doing final assessments of candidates seeking their professional qualifications (the letters MRICS are what they are after!). I remember the last session well – I got food poisoning at the lunch – which helped with my weight loss, but did little for my appetite!

I find the assessments useful on three levels – it helps me keep up to date with changes in the profession, it lets me see the general standard of surveyors coming through and it does help my firms own candidates as I can ‘guide’ them better through the process.

I read a really interesting article on the BBC’s website at the weekend about the myths of an Oxbridge Interview. Mary Beard, a University Teacher is about to hang up her boots – she sets the record straight about the interviews students are put through. Amongst the amusing anecdotes (I love the question “would you rather be an apple or a banana”!) was a statement that rang true with me. She said, “my priority is to get the kids to talk themselves into a place, not talk themselves out of one“.

And this is something we try to tell our RICS candidates. They should enter the interview in the knowledge that they have passed. They just need, for one hour, to talk themselves into membership. So often they talk themselves out. In my experience because often they haven’t grasped what we are after.

In essence we are ‘testing’ that they have reached a standard we require. It a measurable test of competency. We know that they are not going to have been able to value a £1m shopping centre or negotiate a rent review on a football stadium – you tend to need grey hair to do that. But we do expect them to have been involved in jobs, to have observed, to have taken part. More importantly to have given their work some thought. We want them to have reasoned opinions.

We need people who can think, process and give reasoned advice. If they have done the background and been paying attention, this should not be difficult…

1 comment   |  tags: , , , , , , , , , | posted in Nottingham

May 3, 2011

RICS assessment day

By Tim GARRATT

I am in Cheltenham today; carrying out final assessments for the RICS. There are normally four candidates seen by the panel, but today we have only three – so I get a lie in…

I enjoy assessing – it gives me a chance to keep up-to-date with current practice and legislation. It also helps me to help my own firms candidates – by giving them some insight as to what is expected of them at interview.

We know it is a fairly pressurised environment, but all candidates should come into the room assuming the have passed. In theory they have at that point if they have done the required hours of competency based tasks. They have also been ‘signed off’ by two members of the Institution. What tends to catch people out is that they have perhaps exaggerated the work they have done – 29 days of experience in February 2011 is not a good start! The common reason for referral (you don’t ‘fail’ in this uber-PC world) is that the candidate couldn’t demonstrate that they had achieved the competency level.

We know that every candidate is nervous – and we take account of this.

Interestingly the RICS give feedback to assessors on the last session sat. Last Autumn 70% of all candidates passed, 746 on their first attempt. There are no quota’s – but as a generality I have found that we tend to pass three out of the four we see ( We have referred three out of four – that was a bad day!). You hope that all of the candidates will pass…

So, I look forward to meeting the three candidates today. It will be a long day for me – but it will be longer for them! And they have to wait for three weeks before they hear the result.

3 comments   |  tags: , , , , | posted in Nottingham

April 20, 2011

Another Qualification – of sorts!

By Tim GARRATT

Last week one of those card envelopes arrived at home. In it was a nice new certificate.

The RICS have introduced a Valuer Registrations Scheme – which I have had to join. The RICS have been trying to raise the standard of valuation for some time and the new scheme is intended to demonstrate this. We are now required to ensure openness and transparency and ensure our reports are clear.

It now means I am now an “RICS Registered Valuer”. I am not sure that the advice I give will be any different to last week, but the Certificate is nice. I will get it put on the wall.

There is a serious side to all of this – I am normally opposed to any form of additional regulation. I hate layers of bureaucracy. I am sufficiently ‘old school’ to believe that my professional qualifications were hard earned and should be protected. Unfortunately there are still some rogue valuers out there – who can see a fast buck. They can be influenced by ‘fees’ rather than a duty to give an honest opinion.

This new regime is intended to improve standards – and so that must be a good thing. It also means that there will be some monitoring of work done. It is supposed to be an assurance of quality.

If you need a ‘Registered Valuer’ let me know!

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October 14, 2010

Non-existent customer service

By Tim GARRATT

At the risk of a series of recent grumpy old man rants, I can’t let this story go.

My youngest son, Jack passed his driving test at the weekend; after four months of lessons. But the journey there has been ‘interesting’ and the test was not a great experience.

He had a test booked three weeks ago, arrived at the test centre at the appointed time to be told that it had been cancelled. They asked him quizzically ‘didn’t you get our letter?’ Guess what – he hadn’t. Why would he have turned up at the test centre? The test centre claim to have sent a letter moving the test to a date in November, but they also had a phone number which they didn’t bother calling. So, a nervous night before and wasted money for the previous lesson.

Apparently this happens. Two of Jack’s friends have had this happen.

His test on Saturday was a happy affair – he passed. Well it was happy after the event. The examiner was someone who clearly didn’t like people. She was direct bordering on rude. Her claim that there were ‘no trick questions’ didn’t need to be said if the question was clear? I am not sure why people do this sort of job if they are not able to communicate with people. A sense of humour doesn’t go amiss. This isn’t the Brain Surgery professors exam. She had left her charm at home.

I blogged last week about the final test for the RICS – you need some empathy with people. They are nervous, they are under pressure. The tests we put people through in all walks of life are to see that people are capable of demonstrating what they have learned.

We don’t need to make it a painful and frightening experience.

At the end of the day Jack passed – he got seven ‘minor’ faults. But despite the examiners attempts she couldn’t find anything to fail him on. I’m sure she failed in her attempt…

People without these basic people skills shouldn’t be allowed anywhere near people…

Leave a comment   |  tags: , , , , , | posted in Green stuff, Nottingham

October 6, 2010

The final hurdle…

By Tim GARRATT

For the last few years I have been a Licenced Final Assessor for the Royal Institution of Chartered Surveyors (RICS). I sit as part of a panel of three and we are the final hurdle for students to ‘gaining their letters’.

My papers for the Autumn group have arrived in the last week – we get to assess four candidates – in one day. Each assessment lasts one hour – including a ten minute formal presentation by the candidate. They are then tested on their chosen competencies. My ‘specialities’ include landlord & tenant, valuation and management – although I have also examined on Rating and agency.

My involvement does two things – it forces me to keep up to date – I need to be able to test students on current issues and practices. But we also employ a number of graduate surveyors in the firm – it helps me to help them understand and de-mystify the process.

Candidates either ‘pass’ or are ‘referred’ – ‘fail’ is politically incorrect. The bar is reasonably high – we do expect candidates to know their chosen subject. The pass rate is around 65%.

Generally speaking the standard is good, but sometimes we come across candidates who simply don’t make the mark. In some ways it is not their fault as they have been signed off by two qualified surveyors and you cannot help but wonder sometimes what they were thinking…

I do feel for some of the students, there is a tremendous pressure on them. We try to calm nerves, but so often I think it is the nerves that actually let them down.

Other times it’s the things they say – like “let me take a wild guess” – one of my favourites! I was thinking, “Oh please don’t”. He did. And got it wrong. Refer.

I didn’t enjoy my interview – which was in the dark ages of 1989. I can still recall the whole nightmare!

We are often accused in society of dumbing down exams. In fact I think the test is harder today than when I sat. I think today’s students have more to learn and absorb. But the real difference is that they can’t just learn it – they must be able to apply their knowledge – and this is where the vast majority fall down.

1 comment   |  tags: , , , , , , | posted in Business

May 27, 2010

Maths and surveying and mortgages

By Tim GARRATT

I was interested in a leading article published by the President of the RICS, Max Crofts in this months RICS Business magazine. The thrust of his argument was that employers have told him that in the UK surveyors numerical skills are below the standard of those in Europe and way behind those in Asia.

Obviously maths are a key part of our work. We rely quite heavily on computers and calculators to g help with the maths. But, hopefully we only use the maths as a means to an end. It has often been said that valuation is an art not a science. Max’s view is that valuation is a craft…honed by years of experience.

And then I was listening to Radio 4 at lunchtime yesterday – You and Yours carried a story about the possibility of Mortgage lenders making applicants take a basic mathematical skills test! Winifred Robinson was put on the spot by Prof. Stefan Mayer in the USA with the following test questions:

1. A shop sells all items at half price. A sofa was£300 – how much it is now?
2. If the chance of getting a disease is 10%, in a group of 1000 people – how many people will get ill?
3. Second hand car is for sale at £6000 it is 2/3 rd the price it was when new. What was the new price.
4. If 5 people all have the winning lottery ticket – and the total prize is £2m – how much does each get?
5. You have £200 in an account and it earns 10% pa interest – how much would you have at the end of two years.

Easy really? Well, easy when you are not under pressure, but live on the Radio, with no paper to scribble on, Winifred had to work through the questions – especially the fourth one!

Apparently there was a frightening correlation between people who do badly with the maths test with mortgage default! This followed a study of the American sub-prime market by Columbia University.

I can’t see applicants being at all keen to do the test – especially surveyors!

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