(Adds details from two more valuers)
By Esha Vaish
Sept 20 (Reuters) - Five big property services firms aredropping Brexit uncertainty clauses from their valuation reportsfor most UK assets as market conditions steady after a sharpdrop immediately after Britain's vote in June to leave the EU.
The original Brexit clause, seen by Reuters, stated therewas a reduced probability that valuers' opinions of the worth ofa UK property would exactly coincide with the price itspotential sale fetched.
British property was among the sectors hardest hit by thevote in favour of Brexit and at one point commercial propertyfunds worth over 18 billion pounds ($23.4 billion) weresuspended amid high redemptions from investors concerned thatproperty demand and prices would plummet.
Concerns have since eased with four of the seven closedfunds reopening and data from the widest UK commercial propertyindex showing that property values fell less sharply in Augustthan the month before.
"We feel now there's enough certainty in most sectors for usto withdraw that clause from all our valuation reporting," saidRobert Gray, head of fund valuations at Knight Frank.
CBRE, Jones Lang LaSalle, Savills and Colliers said that forsome subsectors with greater uncertainty, they had retainedreworded clauses that reflected a less cautious tone.
"Savills considers the uncertainty clause is redundant formost markets. However, there is a lack of post-Brexit evidencein some sectors ... and we will reference this in our reports asnecessary," said Ian Malden, Savills' divisional head ofvaluation.
The sectors involve central London offices, development landand buildings, retail parks and large shopping centres.
A revised clause from JLL, seen by Reuters, said there wasstill a lack of comparable deals in such sectors and thereforevaluations reflected a "greater degree of judgment".
Andrew Renshaw, JLL's lead director for UK valuations andprofessional advisory, said the concerns were largely around thelarger asset sizes. He expected the revised clause to disappearcompletely during October as conditions become more transparent.
For less risky properties, JLL dropped clauses completelyfrom Sept. 19, following a meeting of top property valuers andfirms last Wednesday, Renshaw said.
Russell Francis, head of valuation and advisory services atColliers, said the firm had begun dropping clauses many weeksago, referencing areas of the housing market that had seenstrong levels of activity even after Brexit.
In recent weeks, several builders have said sales haverisen, and data has suggested prices are climbing again.
On the commercial end of the market, valuers have droppedclauses for properties with long leases and steady incomes,often seen in sectors such as student flats and care homes.
Knight Frank's Gray said the firm's valuations for riskyproperties would on average be 2-6 percent lower than pre-Brexitlevels.
There are some concerns that such clauses may resurface onceBritain begins formal negotiations to exit the EU.
Gray said he did not envisage reintroducing the clause inthe short term, though altered market conditions could prompttheir return.
Knight Frank and CBRE value around two-thirds of UKcommercial real estate market, according to Mike Prew, propertyanalysts at Jefferies. Reuters could not immediate verify howmuch market share the rest of the valuers held.($1 = 0.7705 pounds) (Reporting by Esha Vaish in Bengaluru; Editing by Tom Heneghan)
Savills (SVS)
