In the world of property valuation, Existing Use Value (EUV) plays a critical role — especially for investment, asset management, or planning purposes. Whether assessing the worth of commercial premises, public sector buildings, or development sites, EUV provides a realistic valuation based on the property's current use, rather than its potential for future redevelopment or change of use.
This article breaks down what EUV means, how it differs from market value and alternative valuation methods, and how it is applied in the context of UK property — with insights into how Fraser Bond helps clients navigate valuation strategies to inform smarter investment decisions.
Existing Use Value (EUV) is the estimated amount that a property would sell for on the open market, assuming that it continues to be used for its current purpose and that no significant change in use, redevelopment, or alternative planning consent is considered.
EUV is typically applied when:
There is no intention to change how the property is used
The property is part of a portfolio or business where continuity is assumed
The valuation is for accounting, taxation, or strategic planning purposes
The market value with alternative use is either uncertain or speculative
Based on Current Use: Ignores redevelopment or alternative planning permissions that could increase value
Assumes Willing Seller and Buyer: In a fair, arms-length transaction
Reflects Existing Planning Consents: The valuation is based on the land and property in its present permitted use
Often Used for Operational Assets: Particularly in the public sector, utilities, or large institutional portfolios
Local authorities, NHS trusts, and other government bodies often value land and buildings on an EUV basis for financial reporting and accounting under the RICS Red Book and IFRS (International Financial Reporting Standards).
For companies managing operational premises (e.g. retail stores, offices, warehouses), EUV helps establish the baseline value of properties still in active use.
Some lenders may request EUV assessments for operational assets, particularly when alternative uses would require planning risk or capital investment.
EUV may be used when compensating landowners, ensuring value is based on current use unless an alternative use has a reasonable probability.
| Valuation Type | Assumption | Used For |
|---|---|---|
| Existing Use Value | Property continues in current use | Operational assets, accounting, CPOs |
| Market Value | Highest price obtainable on open market | Sales, investment, development appraisal |
| Alternative Use Value | Property’s potential under new planning consent | Redevelopment, planning, land assembly |
Valuers determine EUV by:
Assessing Comparable Evidence: Reviewing sale prices of similar properties used for the same purpose
Analysing Income (if applicable): If the property is income-generating (e.g. rented warehouse), net income may support valuation
Discounting Development Value: Any uplift from potential redevelopment is removed unless it’s already reflected in current planning status
Considering Obsolescence or Functional Deficiencies: EUV can be affected by outdated building design or inefficiencies in current use
Example:
A warehouse with potential for residential conversion would be valued based on its existing use as industrial storage, not on the potential uplift from converting it into flats — unless planning permission has already been secured.
Provides realistic value for ongoing operations
Useful for strategic asset planning and reporting
Removes speculative bias from valuations
Supported by established RICS and IFRS guidelines
May undervalue redevelopment potential
Not suitable for properties nearing end-of-life or repurposing
Can vary depending on local planning policy and market sentiment
Fraser Bond works with investors, institutions, developers, and public sector clients to provide expert advice on valuation strategies, including Existing Use Value assessments. Our services include:
RICS-compliant property valuations for commercial, residential, and mixed-use assets
Strategic planning advice based on EUV vs alternative use scenarios
Development feasibility studies for sites with potential uplift
Portfolio valuation and asset repositioning strategy
Compulsory purchase and compensation advisory
Our expertise ensures that whether you're managing a large asset base or evaluating the best approach to acquisition or redevelopment, you receive accurate, compliant, and strategically informed valuation advice.
Existing Use Value (EUV) plays a vital role in accurately assessing property based on its current operational function — without factoring in speculative potential or development assumptions. Whether for financial reporting, lending, or asset planning, EUV provides a stable valuation baseline. With Fraser Bond’s experience and precision, clients can leverage EUV within a broader strategy to drive sound property decisions and long-term value creation.
