RICS has launched new Guidance on reflecting uncertainty in Valuations for Investment purposes. The Guidance does not aim to explain valuation techniques, instead, alert, primarily, users of valuations for investment purposes, but also members providing this type of valuations about the basic matters that must be taken into account.

The Guidance suggests a possible categorization of uncertainty into four levels (absolute uncertainty, partial uncertainty, uncertainty and absolute certainty) and recommends users and practitioners to be aware  and carefully consider the several possible types of uncertainty commonly found (economic, financial and political uncertainty; legal and regulatory; physical uncertainty; occupational uncertainty; leasing uncertainty; market uncertainty and valuation uncertainty).

The report recommends an effective communication of uncertainty by means of risk analysis, preferring from that perspective SWOT analysis to the more complicated Montecarlo or Property Risk scoring methods.

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