How can we help you?

In land valuation, there are several methods of assessing the value of a property or piece of land. Two common methods are "existing use value - social housing" (EUV- SH) and "market value subject to tenancy" (MV-ST).

EUV-SH refers to the value of a property or land if it were to be used for social housing in perpetuity. It assumes a hypothetical sale to another RP on assumptions that the stock can be let at affordable rents, will be managed in accordance with the Housing Regulators requirements and that void properties will be re-let on the same tenure basis and not sold with vacant possession. It therefore limits the level of rent that the properties may attract which remain at affordable or social rent levels which are typically lower than those generated from private rented accommodation in the open market.

The second type of valuation used in the Sector is MV-ST (or MV-STT) which refers to the value of a property with an existing tenancy in place. This is the value that a property would achieve on the open market if it were sold subject to the existing tenancy agreement. This method assumes that a hypothetical sale would not be bound by the same regulatory rules as EUV-SH properties and could be traded in a more commercial way. This hypothetical sale would envisage an increase in rents to market levels, making commercial decisions about the property in terms of repairs and management and the ability to sell voids with vacant possession thus in turn leading to a higher valuation attributed to the property.

The key difference between EUV social housing and MVST is that the former is based on the assumption that the property will be used for social housing, whereas the latter takes into account the existing tenancy agreement. As a result, the values generated by these two methods can be significantly different.