VALUATION FOR LOAN SECURITY PURPOSES IN THE CONTEXT OF A PROPERTY MARKET CRISIS - THE CASE OF THE UNITED KINGDOM AND POLAND

Valuation for loan security purposes has been a key issue related to property valuation, financial markets and the economy in general. This paper attempts to demonstrate the main reasons for interest in this field by referring to the situation in Poland and the United Kingdom. Moreover, the conditions of valuation for loan security purposes in Europe have been outlined, as well as the new challenges that property valuers have to face. Questions regarding unified and harmonious valuation standards have been presented in relation to international, European and domestic professional standards and legal regulations. The conclusion addresses further challenges of property valuation that must be tackled urgently, because valuation results are strictly connected with the profitability and safety of investments in the property market. Furthermore, the paper emphasizes that uncertainty in the valuation process also needs to be taken into account, as the appraised properties secure loans given by institutions funding their development.