Rating Manual section 3: valuation principles

Part 4: appendix 2 - caseworkers EPR aide-mémoire

The Valuation Office Agency's (VOA) technical manual for the rating of business (non-domestic) property.

Remember you are looking at the economic position at AVD and the physical position on the Material Day. MCCs should be distinguished from economic changes.

Inspection – It is vital the property is inspected and detailed inspection notes are kept. Photographs should be takes to evidence the state of the property.

Demand – it is the general demand for this type of property that is considered

  •  was the property occupied at AVD? If yes then demand is proven

  • were similar properties in the locality occupied? If yes then the general demand for this type of property is proven

  •  is this a unique type of property? The property must be evidenced as materially different from other properties in the locality to prove this contention. The locality for a sui generis use e.g abattoir may be regional and it must be established that no market exists for that use in that locality

  •  was there active marketing at AVD? Details of marketing should be obtained. Proposed lettings contracted out of the landlord and tenant act would deter potential tenants and suggest that the owner plans an alternative use for the site

  •  are there redevelopment plans?

  •  if there would clearly be no AVD demand in the MD physical situation, then nil value is appropriate

  • check with Team Leader and/or EPR coordinator. Ensure thought process fully recorded


  •  is the current RV too high?

  • check valuation scheme for settlements, rents etc. Be wary of “catch all” schemes with a diverse range of different properties and different sizes


  •  if repair is an issue a breakdown of costs will be needed to enable identification of relevant repair costs, excluding improvements

  • consider the economic reasonableness test. Is it worth the hypothetical landlord carrying out the repairs or would he accept a lower rent? The type of property and the age will affect the landlord’s decision. If the current value has been agreed for the current rating list this will provide a benchmark against which to determine economically reasonable repairs and the period of time for ammortisation

  •  where the cost of repairs is in dispute assistance should be requested from the building surveyor

Other factors

  • capital value?
  • life expectancy in current state and in “repaired” state
  • supporting case law