RICS updated professional standard for valuation of licensed leisure properties comes into effect

The Royal Institution of Chartered Surveyors (RICS) has updated its UK professional standard for the valuation of licensed leisure properties. 

The standard, now in its second edition, is titled ‘Valuation of licensed leisure property (including public houses, bars, nightclubs and restaurants)’, and came into effect on 1 July 2025. It replaces the 2010 RICS guidance ‘The capital and rental valuation of public houses, bars, restaurants and nightclubs in England and Wales’, which has been withdrawn.

The reasons for the update to the licensed leisure professional standard are referred to in RICS’ basis for conclusions document. In summary, these are:

• reflecting market, practice and relevant regulatory changes since the previous guidance was published in 2010
• expanding the coverage of the standard from England and Wales to the UK
• incorporating other relevant RICS professional standards, such as the RICS Valuation – Global Standards (Red Book Global Standards)
• including a specific section for non-valuers, which recognises that the standard may also be used by a range of stakeholders in respect of, for example, the tied pubs market and lease advisory

The PCA welcomes these significant changes which include an update to the section on tied pubs (as this was the market most comments in the consultation referred to). While it is mainly relevant for RICS members and RICS-regulated firms, the standard’s section on supporting information for non-valuers is welcome and will be particularly helpful to significant stakeholders in the market including some tenants. 

Under the Pubs Code, regulated pub-owning business must prepare their tied rent proposals and rent assessment proposals in accordance with RICS guidance. Tenants must take independent professional advice before taking on a new agreement and must be advised to take independent professional advice about their rent before agreeing to it. For more information about the Pubs Code duties on pub-owning businesses relating to tied rent negotiations see the PCA’s website, where further information to support tenants in getting advice from professional advisers can also be found.