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  • European Valuation Standards (EVS 2016)

European Valuation Standards (EVS)

TEGoVA has published of European Valuation Standards since the early 1980s. This, the eighth edition, was launched on 13 May 2016 at TEGoVA European valuation conference in Brussels. The digital version of the book is downloadable from this site.

EVS 2016 (The Blue Book)


Introduction by John Hockey MSc FRICS IRRV (Hons) REV, Chairman of the European Valuation Board and Editor of EVS 2016

The framework and content of EVS 2016, the eighth edition of European Valuation Standards, has been determined by recognition, extensive consultation and feedback.

Feedback from a wide variety of stakeholders has confirmed that EVS should remain clearly focused on real estate, provide additional guidance and technical information to meet the diverse needs of the 63 TEGoVA Member Associations (TMA's) and continue to concentrate on high level principles.

In meeting these objectives this publication follows the direction of previous editions, being informed by existing and emerging European regulation, acknowledging that EU law is the origin of an increasing amount of the local property law underpinning valuation. However, Union regulation can presume outcomes that are not always evident in the market. Energy efficiency is an example in point. EVS helps raise the valuer's consciousness of energy efficiency issues and EU instruments such as the energy performance certificate and its recommendations for improvements, but at the same time upholds the scientific and professional obligation on the valuer to value energy efficiency on the basis that values set must reflect verifiable market reality.

EVS 2016 provides harmonised European standards, guidance and technical information for use by all sectors of the European valuation profession. Corporate governance and ethical considerations are embedded within the standards, confirming, for instance, that a valuation produced in accordance with these standards is signed by a qualified professional whose experience, qualification, diligence and ethical behaviour are appropriate to the instruction.

The Eighth Edition

Part 1: European Valuation Standards and Guidance Notes

EVS continues to provide five Standards. They have all been refined and reinforced beyond those published in 2012. By way of example:

  • EVS 1, Market Value, is expanded to include a definition of Market Rent, derived from and consistent with its definition of Market Value.
  • EVS 2, Valuation Bases Other than Market Value, extends the commentary relating to Mortgage Lending Value (MLV), explaining the conceptual value-at-risk approach to manage the risk exposure of credit institutions taking into account special safety requirements.
  • EVS 3, The Qualified Valuer, expands the requirements that determine that the valuer be, and be seen to be, not only competent to act, but also independent, and without any undisclosed potential conflicts of interest which are actual or possible and which can be foreseen at the time when the instructions are accepted.
  • EVS 4, The Valuation Process, incorporates and amends guidance published in May 2013 relating to terms of engagement.
  • EVS 5, Reporting the Valuation, cites the European Union's Capital Requirements Regulation 575/2013 which defines both Market Value and Mortgage Lending Value, in line with the definitions set out in EVS and also provides commentary on situations where opinions of "value in the longer term" are requested.

Guidance Notes (previously referred to as Applications) follow on from the Standards. They have been reinforced to provide detailed analysis and explanation of key issues and approaches to be followed. For example, EVGN 4, Assessment of Insurable Value and Damage has been expanded and incorporates an updated Information Paper relating to insured damage published in May 2013.

There are two new topic areas covered by the Guidance:

  • EVGN 9, TEGoVA Commercial Loan Specification. This specification was initially published in October 2014, designed to be used by valuers providing valuations for secured lending to lenders that are members of the European Mortgage Federation (EMF).
  • EVGN 10, Valuations: Compliance with EVS. This GN provides clarification on those valuations that will be compliant, and explains the main reasons that a valuation would not need to comply or would depart from TEGoVA requirements.

Part 2: European Codes

Two updated and extended codes are provided, namely the European Valuers' Code of Conduct and Ethics, and the European Code of Measurement.

Part 3: European Union Legislation and Property Valuation

Introduced in the 2102 edition, a complete section is devoted to the body of EU law impacting real estate and valuation with many updates to take account of the EU real estate policy advances over recent years. Based on comments received since 2012, this section is of particular value to academics, researchers, civil servants and advisers involved in the real estate aspects of EU policy.

Part 4: Technical Documents

Eight Information Papers (inter alia) are included within Part 4. New topic areas include Valuations for Recurrent Property Tax Purposes, Automated Valuation Models (AVM) and Valuation Methodology. The remainder papers have been updated and refreshed.

EVS 2016 does not address any country specific issues. Country chapters are published on this website setting out details of national legislation and valuation practice that are relevant to that country.

This, the eighth edition of the European Valuation Standards replaces the previous edition with effect from 1 June 2016.

New Standard and Guidance Note on AVMs Immediately Operational

On 28 October 2017 in Marseille, the TEGoVA General Assembly, by near-unanimity, approved the attached European Valuation StandardEVS 6 "Automated Valuation Models (AVMs)" and European Valuation Guidance Note EVGN 11 "The Valuer's Use of Statistical Tools" and rendered them immediately operational. They are now an integral part of European Valuation Standards and are to be complied with by all members of TEGoVA's member associations.

The existing EVS 2016's European Valuation Information Paper, EVIP 6 Automated Valuation Models, is now null and void.

The Book

The book is divided into four parts, read more by clicking on the link.

Country-Specific Legislation and Practice

The Country Chapters illustrate differences that currently exist across Europe. They are not intended to provide definitive advice. The text has been provided by TEGoVA Member Associations to outline country-specific legislation and practice.

European Valuation Standards Board (EVSB)

The EVSB drafts European Valuation Standards with particular attention to EU law.

European Valuation Practice and Methodology Board (EVPMB)

The EVPMB develops a harmonised European approach to valuation methodology.

K. Grzesik


In the four years since the last edition of EVS, Europeans have confronted economic and financial crisis together, through Banking Union, Capital Markets Union, consolidation of the Internal Market and EU Economic Governance. A key aspect for the valuation profession was the property valuation article of the Mortgage Credit Directive. It is this Article and its relevant Recital that introduce European Valuation Standards into European law as internationally recognised valuation standards containing high level principles serving as a template for valuation standards in the member states. This was done in recognition of the importance of valuation both for the security of financial and property markets and for consumer protection.

The single most crucial event has been the European Central Bank's action to shore up banks and avoid systemic meltdown. Key to this in 2014 was the ECB's Asset Quality Review enabling it to gauge the solidity of the Eurozone's banks. Its tool for achieving this was the AQR Manual, Section 5 of which focused on Collateral and Real Estate Valuation and gave EVS primacy over all other standards for the updating of banks' real estate collateral values in the AQR exercise.

The European authorities want reliable valuation standards throughout the Union giving TEGoVA a special responsibility to adapt EVS to the rapid EU mutations in banking supervision. Mortgage Lending Value is a case in point: EVS 2016 continues to provide the authoritative guidance on the assessment of MLV and enhances it with detailed analysis and explanation of the key issues and approaches to be followed. Other systemically key updates are the guidance on Property Valuation for Securitisation Purposes and Property and Market Rating.

It is my pleasure to preface this new edition of standards which are now an important tool for the reforms needed to put financial and real estate markets on a solid footing going forward.

Krzysztof Grzesik FRICS IRRV (Hon) REV
Chairman of the Board of Directors