UK freehold reversionary properties: valuation practice revisited

Purpose – In the last 40 years, the UK valuation profession has relied heavily upon the "hardcore" or "layer" method for valuing reversionary properties (under‐ and/or over‐rented). This approach is not used elsewhere in the world and, prior to the rent freeze of the 1970s in the UK, it wasn't a principal method in the UK. However, valuers today, particularly in London, use this method exclusively despite it producing erroneous answers in certain cases (over‐rented; non‐normal cash flows). This paper seeks to address these issues.