The Institute of Professional Auctioneers and Valuers (IPAV) will discuss the possiblity of introducing a European system for valuing property in Ireland when they host a summit in Dublin on Wednesday.
The event in the Chartered Accountants House on Pearse Street will debate the merits of the European valuation method ‘Mortgage Lending Value’, which is currently used in Spain, Germany, Portugal and the Czech Republic.
The concept determines a property valuation based on a range of factors that attempt to determine value over the longer term rather than current trends at the time of sale.
Commenting on the system, IPAV Chief Executive Pat Davitt said the European model could prevent future boom and bust cycles.
“The only system of valuing property in Ireland is one based on market value. It estimates the price that could be obtained for a property at the valuation date, notwithstanding that this value could alter over time, sometimes very rapidly, as we know only too well.
“However under the ‘Mortgage Lending Value’ system the value of a property is determined by a prudent assessment of its future marketability taking into account long-term sustainable aspects of the property such as the local market conditions, the current use and possible alternate uses.
“We’re hosting this debate to tease out the ramifications of such a system. We have the opportunity to study the experiences from other countries and have a fully informed debate on the merits or otherwise of such a system,” he said.
The event will be opened by Minister of State Simon Harris TD with speakers including CEO of the European Mortgage Federation, Luca Bertalot and economist David McWilliams.