The valuation of trees
4 March 2010
The Rural Professional Group launched its new guidance at the end of February on the Valuation of trees for amenity and related non-timber uses to help valuers deal with some of the more complex issues arising from the evaluation of significant trees or groups of trees.
A valuer might need to reflect the presence and impact of trees in property valuations required for almost any purpose and occasionally, might be asked to give an opinion on the value or worth of trees as assets in their own right. A number of methods have been developed, principally by arboriculturists and landscape appraisers, for application in specific circumstances, and the guidance note discusses the relationship of these methods to generally accepted standards for the valuation of real property.
It is important to note that the guidance note does not cover the assessment of the timber value of trees. It might sometimes be difficult to distinguish a valuation for timber from a valuation for amenity and other non-timber uses, and in practice, the two types of valuation might need to be considered alongside one other. For example, a wood on a rural estate that adds considerably to the amenity and sporting value of the estate might also have considerable value for its timber. In such a case, more than one approach might need to be considered to reach a sound valuation.
However, it would be important to avoid 'double-counting' the value of the trees by regarding them as a valuable timber asset as well as an important amenity asset, if one use could be exploited only at the expense of the other. It is up to the valuer to choose which is the most appropriate approach in the light of the physical circumstances, economic conditions and the purpose for which the valuation is required.
There is no ceiling on the number or area of trees to which this guidance applies. If the value of small groups of trees in urban or rural settings derives from their landscape and amenity value, the same principle can apply to large groups of trees in more open and rural areas. Again, this is a matter for the valuer to judge.
The core content of the guidance note covers the basis of valuation, the need for the valuer to understand fully the subject of the valuation and, in some detail, the various valuation methods available.
In most cases, there is no straightforward answer to the question of how a tree or trees affects (negatively or positively) the overall price a property might fetch in a transaction. Nor is the valuation of a tree as a separate entity straightforward, beyond its basic timber value.
Valuers faced with these issues have to balance the various factors involved and might need to use more than one valuation method, the choice and application of which would be a matter for the professional judgement and expertise of the valuer. The broad considerations outlined in this paper are designed to help the valuer frame that judgement and apply that expertise.
Further information |
| Valuation of trees for amenity and related non-timber uses, RICS guidance note |
 See also Woodlands in isurv valuation |
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Related competencies include: The guidance note was produced by a steering group headed by Charles Cowap, a member of the Rural Professional Group Board.
