Riding schools and livery stables
This publication is intended for Valuation Officers. It may contain links to internal resources that are not available through this version.
1.1 This instruction applies to all riding school and livery stables.
1.2 Livery Stables
A livery stable offers facilities for owners to stable their horses, often offering the following options:
- full livery - the horse is stabled, fed, watered, groomed, mucked out and exercised by the proprietor of the livery yard
- part livery - the horse is provided with stabling, but the owner might undertake to exercise, groom, or muck out and feed, in any combination
- stabling only (often referred to as DIY livery) - the horse is stabled, but the owner is responsible for doing everything else
Additionally, a livery stable proprietor might keep hirelings (horses hired out to clients for hunting or hacking); may offer hay or straw for sale; offer horse transport for hire or may provide schooling or tuition. It is in this latter aspect where the use of a livery stable and that of a riding school begin to overlap. Where there is a mixture of these two functions in large establishments, they are often called “equestrian centres”.
1.3 Riding Schools
A riding school generally hires out horses or ponies on a pay per hour basis typically:
- clients go out together on a ride accompanied by a member of staff
- more experienced riders may go out in groups or alone
- clients receive tuition, either individually or in groups, from a member of staff, either in an indoor school or outdoor arena
List Description: Riding schools & livery stables
Scat Code: 236
Suffix: G
Bulk Class: M
3.1 The Animal & Rural Class Co-ordination Team (CCT) has overall responsibility for the co-ordination of this class. Each Regional Valuation Unit (RVU) has a representative on the team. The team is responsible for the approach to and the accuracy and consistency of riding schools and livery stables.
RVU will be responsible for referencing, gathering facts and valuation.
The Animal & Rural CCT will deliver practice notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating lists. Caseworkers have a responsibility to:
- follow the advice given at all times – practice notes are mandatory
- not depart from the advice given on appeal or maintenance work without approval from the CCT
- seek advice from the CCT before starting any new work
5.1 Riding establishments, trekking centres, or livery stables offering horses for hire must be licensed to operate under the Animal Welfare (Licensing of Activities Involving Animals) (England) Regulations 2018. Where the operation is restricted to livery only, no license is required.
5.2 Common issues encountered with this class maybe:
- identifying the correct unit of assessment:
- the domestic/ nondomestic borderline
- agricultural exemption
- disabled persons exemption
Taking each one in turn:
5.2 Identification of the “Unit of Assessment”
Increasingly many equestrian establishments and leisure venues are diversifying into a multitude of other uses, often incorporating farm shops, cafes and the like.
Care should be taken in identifying the correct rateable occupier, particularly where facilities are shared between different ventures. For further information on the identification of unit of assessment please refer to Rating Manual section 2, part 2.
5.3 Domestic/ Non-Domestic borderline
Riding schools and/or livery stables occupied together with living accommodation should not be regarded as appurtenances belonging to, or enjoyed with, the living accommodation. They are not domestic premises and should be treated as composite non-domestic hereditaments in the same way that a shop and flat would be. For further information on the domestic/non domestic borderline please refer to Rating Manual section 2, part 5.
5.4 Agricultural Exemption
Buildings
It was confirmed in the appeals of Hemens (VO) v Whitsbury Farm and Stud Ltd (1988 RA277HL) that horses and ponies, other than those used for farming the land or reared for food, are not “livestock” within the definition in Section 1(3) Rating Act 1971, now paragraph 8(5) of Schedule 5 to the Local Government Finance Act 1988 (LGFA ‘88).
This means that loose boxes stabling horses used for riding and ancillary buildings, such as tack rooms, feed stores and such are not “agricultural buildings” and are therefore rateable.
However, there may be parts of the property which are used for an exempt purpose. An example being a hay barn used either to store a hay crop taken from the land occupied by the riding school proprietor, or to store hay solely for livestock which are also kept by the proprietor of the riding school enterprise. Exemption considerations should not be limited to a whole building but also to a separate part of a building that is solely used for an exempt purpose.
If there is property which is used wholly for exempt agricultural purposes at certain times of the year and wholly for non-exempt purposes at other times, provided all the parties are agreeable, there is no objection to valuers agreeing a level of assessment which reflects the proportion of time used for exempt purposes to non-exempt purposes throughout the year, although the technically correct approach must be to alter the list each time the circumstances change.
Land
“Agricultural land” is defined in paragraph 2 of Schedule 5 to LGFA ’88. This definition includes:
“Land used as arable, meadow or pasture ground only.”
However, paragraph 2(2)(d) of Schedule 5 goes on to state that agricultural land does not include:
“Land used mainly or exclusively for purposes of sport or recreation.”
In short, land used only for the grazing of horses should be treated as “agricultural land” within the meaning of paragraph 2(1)(a) of Schedule 5.
There may be varying degrees of use, in addition to grazing, that will not always lead to rateability. Where grazing land is used for the temporary erection of jumps for occasional casual recreational use, this should not affect exemption, but land used primarily or permanently as an outdoor exercise area does not fulfil the definition of use as “arable, meadow or pasture ground only” and will be rateable.
For further information on agricultural exemption please refer to Rating Manual section 2, part 6.
5.5 Disabled Persons exemption
Some riding schools are used in connection with organisations that provide disabled people with access to activities such as riding or carriage driving.
Whilst it is considered that the provision of riding facilities for disabled persons may qualify premises for exemption under provisions of paragraph 16 of Schedule 5 to LGFA ‘88, this will only apply to property used wholly for the exempt purpose. This will require there to be clearly identifiable parts of the hereditament which are wholly used for the exempt purpose.
If property is used for both qualifying and non-qualifying purposes on the same day then such areas will not be exempt.
For further information on disabled persons exemption please refer to Rating Manual section 2, part 6.
6.1 Inspections should be carried out in accordance with the Valuation Office Agency Property Inspector Manual.
6.2 When inspecting a riding school or livery yard, property inspectors should record the location and description of to include the following:
- location
- site - size, shape, and topography
- buildings infrastructure - number and type of stables
- ancillaries – tack rooms, storage, arenas etc
- gallops – length, construction, and surface
- land – agricultural, turn out and domestic boundary
- services - heating energy source and water source
- car parking
- photographs of the main constituent parts of the site.
6.3 An inspection checklist is appended to this section (Appendix 1) and should be completed for all new properties, updated for maintenance work, and stored in the property folder of the Electronic Document Records Management (EDRM) system.
Stabling
It is important to record the number and type available, together with their size and mode of construction. Ancillary facilities will also need to be recorded. These will generally include tack rooms, feed stores, hay and straw barns or other storage areas.
Stables and ancillaries should be measured in accordance with the inspection checklist guidance.
Arenas
Both indoor and outdoor all-weather arenas maybe present. Surfaces are likely to vary, some may be waxed, others a mixture of fibre sand, or pulverised rubber. Drainage is also an important consideration. Details of the type of surface and presence of any artificial lighting should be noted, along with any spectator areas.
Arenas should be measured to GIA.
7.1 Rating surveys should be captured on the Rating Support Application (RSA). Plans and surveys should be stored in the property folder of Electronic Document and Records Management (EDRM).
7.2 Historically, many different sub-location codes have been used to value this type of property across the country. For revaluations 2026 onward, the national sub location of RIDE should be used.
7.3 The common use codes used to record the various stables/boxes that may comprise a riding school or livery yard are outlined in the table below. These should be recorded as units, e.g.,12 stables and not in square metres.
| ACCOMMODATION USE CODE | DESCRIPTION | DEFAULT PERCENTAGE OF MAIN SPACE RATE (see section 8.3-8.6) | REMARKS |
|---|---|---|---|
| LBA | American Barn Stables | 100% | Stables in purpose built or converted barn usually with a centre isle layout. |
| LBT | Timber Stables | 100% | Stables situated outdoors and not in a barn made of timber. |
| LBB | Traditional Brick/Block Stables | 100% | Stables situated outdoors and not in a barn made of brick/block. |
| LBC | Caged Stables | 90% | Stables situated indoors. Older style set up of stables. These are accessed via narrow corridors with more limited light and air flow. Not to be confused with American Barns. |
| LBL | Larger Stables 20m2 + | 110% | Stables that are 20m2 or greater and are not foaling stables. |
| LBP | Pony Stable 10m2 or less | 90% | Stables that are 10m2 or less, commonly used for housing ponies. |
| FOL | Foaling Stable | 110% | Stable used for foaling 20m2+. |
| STA | Stalls | 50% | Area to tie up horses/ponies. Usually has divides either side of some form but no door. |
Only stables or stalls should be captured as an accommodation use code. Everything else should go in ‘other additions.’
The common use codes used to record the various ‘other additions’ are outlined in the table below:
| OTHER ADDITION USE CODE | DESCRIPTION | RECORDED IN |
|---|---|---|
| ARI | Indoor Arena | M2 |
| ARO | Outdoor Arena | M2 |
| ARF | Floodlit outdoor arena | M2 |
| ARG | Outdoor grass arena | ACRES |
| BLD | Residual building | M2 |
| CAF | Cafe | M2 |
| CAR | Caravans (reflected) | M2 |
| CVN | Caravans | M2 |
| CHA | Changing room | M2 |
| CLB | Clubhouse | M2 |
| CNP | Canopy | M2 |
| CNT | Canter way | UNITS |
| CVY | Covering yard | M2 |
| DUT | Dutch barn | M2 |
| DUR | Dutch barn (reflected) | M2 |
| EVI | Additional eventing income | UNITS |
| GLG | Grass Gallops | ACRES |
| GLP | Polytrack all-weather gallops | FURLONGS |
| GLW | Non Polytrack all-weather gallops | FURLONGS |
| HWI | Indoor horse walker | NUMBER OF HORSES WALKER TAKES |
| HWO | Outdoor horse walker | NUMBER OF HORSES WALKER TAKES |
| ITRN | Indoor turn out (loose barn) | M2 |
| JMP | Grass jump paddock | ACRES |
| JUD | Judges box | M2 |
| LFG | Rough surface, fenced land | M2 |
| LFH | Hard surface, fenced land | M2 |
| LFU | Unsurfaced, fenced land | M2 |
| LOG | Rough surface, unfenced land | M2 |
| LOH | Hard surface, unfenced land | M2 |
| LOU | Unsurfaced, unfenced land | M2 |
| LUN | Lunge ring | M2 |
| MES | Staff room/kitchen area | M2 |
| OFR | Office (reflected) | M2 |
| OFF | Office | M2 |
| OWN | Owners room | M2 |
| OUT | Outdoor seating space | M2 |
| PIT | Caravan pitch income | UNITS |
| PKR | Portable building (reflected) | M2 |
| PKN | Portable building | M2 |
| POL | Polo pitch | HECTARES |
| SCR | Storage container (reflected) | UNITS/M2 |
| SCN | Storage container | UNITS/M2 |
| SEA | Water walker | UNITS |
| SHR | Shed (reflected) | M2 |
| SHD | Shed | M2 |
| SHL | Field Shelter | M2 |
| SOL | Solarium | M2 |
| SOV | Shop/retail area | M2 |
| SPC | Spectators stand indoor | M2 |
| SPO | Spectators stand outdoor | M2 |
| STR | Store (reflected) | M2 |
| STO | Store | M2 |
| SWM | Equine swimming pool | UNITS |
| TCR | Tack room (reflected) | M2 |
| TAC | Tack room | M2 |
| TRN | Turn out paddock (not grass) | M2 |
| WDI | Indoor wash down area | M2 |
| WDO | Outdoor was down area | M2 |
| WCB | Toilets | M2 |
| WKR | Workshop reflected | M2 |
| WKS | Workshop | M2 |
| XC1 | Substantial cross-country course | UNITS |
| XC2 | Cross country course | UNITS |
8.1 It is expected that sufficient rental evidence will exist to enable valuations to be carried out on a rental’s basis. The Notice Requesting Statutory Information (Form of Return) for this class of property is typically obtained using VO 6003.
8.2 Analysis of evidence
The analysis of evidence should be on an all-inclusive basis, to reflect tack rooms, food stores, admin offices, rug rooms, maintenance storage and hay barns within box/stable prices. This inclusive basis must be in proportion to the number of stables on site. Where any non-standard features exist, such as disproportionate sized offices or hospitality suites, these must be stripped out.
The two main problems in analysis are the approaches to stripping out or apportioning the rent/value relating to domestic accommodation and areas of land.
Valuers should be aware that stripping out the full rental value of domestic accommodation (if based on other non-composite dwellings within the locality), may not be appropriate.
Where there is land, consideration should be given to stripping this out of the rental value.
It is recommended that advice on analysis and adjustment is sought from the Class Coordination Team where rents include amounts for domestic accommodation or land.
8.3 Stables
Construction and layout of the stables will vary. Traditional boxes will be brick built with a pitched tile roof with an overhang to provide shelter from the weather. Some older styles have what are termed ‘caged boxes’ where a run of boxes and a ‘corridor’ are within the structure of the building providing full protection from the elements but often at the expense of access difficulties. A modern version of this is the ‘American barn’ arrangement where typically a large ‘at cost’ type barn will be divided up by block partitions to have boxes running the length of both of the longest walls with back-to-back boxes down the middle of the barn.
These barns will often be open ended to provide the proper ventilation necessary to prevent the spreading of infections.
8.4 There may need to be an addition of up to 25% on ‘average/ standard’ stables to reflect additional quality/size benefits. It would be expected that the maximum 25% addition would be appropriate for those stables which have additional outdoor pens attached to them.
8.5 Similarly, a discount from the ‘average / standard’ rate may be justified where the stabling provides a particularly low standard of accommodation compared with the average. For example, smaller pony stables or stalls.
8.6 Outdoor timber stables will not be discounted simply because of their construction. However, a discount from the standard rate maybe applicable for quality reasons following an exercise of valuer judgement.
8.7 Ancillaries
8.8 Tack rooms, hay/bedding stores, rug rooms, yard maintenance stores and admin offices should all be shown in the valuation. These items will be considered as being reflected in the box/stable value, and shown as a nil value, but only in proportion to the number of stables on site.
8.9 Other ancillaries that maybe on site include horse walkers, indoor and outdoor arenas and spectator areas, which should be added to the valuation.
8.10 CCTV or other security systems installed for monitoring the health and well-being of the horses as well as for security protection should be valued. Valuation guidance from the CCT should be referred to where this is the case.
8.11 Claims arising for discount due to damage or flooding of arenas should be considered under the normal repair principles.
8.12 Additional Income
8.13 An addition to reflect revenue received from other unrelated sources such as regular events or other functions maybe appropriate. This figure will be a percentage of the additional income generated by significant activities hosted on site. Revenue from ‘one off’ events or where other uses have no prospect of continuance should be disregarded. Where a ‘hybrid’ method is used to add additional income to the valuation, valuations should still be entered on the Rating Support Application (RSA). Any additional rateable value attributable to major events should be shown in ‘other additions’ under the code EVI. A full record of how this sum has been calculated must be shown in RSA “remarks”.
8.14 Relativities
Relativities may require tuning to reflect individual circumstances following the exercise of valuer judgement.
Rating Support Application (RSA)
Survaid
Valuation Panel 1 (VP1) animal & rural class co-ordination team (CCT) members
SharePoint guidance for G class suffix
1. Market Appraisal
1.1 Since the last Antecedent Valuation Date (AVD), there has been a marked decline in the number of regular riders. This impact is less acute amongst the horse owning fraternity, where whilst figures for horse ownership are down, the numbers riding remains at a constant level. It therefore follows that facilities hiring out horses for hacking, such as riding schools have been hit the hardest. To mitigate this impact, many riding schools have shifted towards offering stables for livery services, as this is considered more financially viable. Loss of access to a horse, combined with expense are cited as the main reasons for giving up the pastime
1.2 Research shows that riders in the South East, South West and Wales make up approximately half of all regular riders across the entire country. The Midlands, North East and North West have reported significant falls in rider numbers with London showing the steepest decline.
1.3 Statistics reveal that riding for pleasure, non-affiliated competitions and riding lessons have remained relatively static since the last AVD although in recent years have clearly been impacted by Covid restrictions.
1.4 In addition to rider numbers declining, the market demand for recreational horses has reduced, impacting on average prices paid. Generally, owners are now keeping horses longer, with a notable increase in numbers being kept outside all year. The average cost of horse ownership has increased from £3,105 per annum at the last AVD to current levels of around £3,600
1.5 Riding schools in particular face challenges, with increased insurance premiums and staffing costs; set against an environment where increased fees would deter customers. The recent Animal Welfare (Licensing of Activities Involving Animals) (England) Regulations 2018 impacts on riding schools. In that from 01 Oct 2018, all commercial operations hiring out horses for tuition or recreation must provide isolation boxes for recently acquired or sick animals. In effect, this means either the utilization of existing stables (where layout/ capacity allows) or incurred erection costs for new structures.
1.6 It should be noted, yards used solely for livery are not governed by the above legislation, as the horses are privately owned – not belonging to the commercial operation.
2. Changes since the last practice note
2.1 There are no significant changes in approach, although to aid consistency across the network and comparison with other equine classes, a decision has been made to reflect certain ‘other additions’ within box prices. Namely ancillary buildings to the stabling such as tack rooms, feed stores and mess rooms. Facilities such as indoor arenas, horse walkers and surfaced exercise areas will continue to be shown as separate items within summary valuations. Where rents include an amount for such items, analysis of box prices may show a modest pro rata increase, this will however not impact on rateable values. Any increases on 2017 Rating List levels will be restricted to locations where it can be proven rental levels have risen.
3. Ratepayer discussions
3.1 Discussions have been held with the British Horse Society.
4. Valuation Scheme
4.1 There is no agreed scheme for this class as box values are determined by prevailing rental levels within any locality. It is acknowledged that in some regions, rental evidence may be limited or require such significant adjustment to hold little weight. It is therefore vital that analysis and adjustment be been undertaken by the Class Coordination Team.
4.2 To ensure consistency, advice should be sought from the Class Coordination Team on appropriate deductions to be made when stripping out domestic accommodation for the purposes of rental analysis. Information should be sought on any planning restrictions, the type/ style of dwelling and its proximity to the equine facilities in question.
4.3 For analysis purposes, land rental values should be adopted within the range of £150 to £460 per acre. Regard should be had to local demand, size and quality (for example sloping site/ suitability for grazing). Conversely for valuation purposes, where such land is used as grazing/ pasture, it will be treated as exempt under Schedule 5 of the Local Government Finance Act 1988
4.4 National tables for ‘other additions’ not reflected within box prices, have been devised to ensure consistency. Values are based on replacement costs, then amortised to produce an annual equivalent. It is acknowledged however that in limited circumstances further adjustment may be required to reflect quality and other specific factors.
4.5 Class Coordination Team members should be approached when dealing with both Check, Challenge & Appeal and maintenance work on this class.
1. Market Appraisal
The economic downturn has had an adverse impacted on horse ownership and riding for pleasure within the UK. Approximately 19% less individuals now participate in the sport than in 2006, with the main reason given for the decline being expense.
It is still an extremely popular pastime however with approximately 900,000 horses owned by 451,000 private individuals in Britain. In addition, a further 88,000 horses are owned by the professional sector. It is now estimated that direct expenditure for the care and upkeep of horses stands nationally at £2.8 billion, or an average equivalent of £3,105 per horse/ per annum.
The range and quality of facilities is extremely diverse, from large scale competition/ training venues, to modest livery operations offering occasional lessons.
The market for ‘county level’ eventing centres, often forming part of pony club affiliated competition circuits remains strong. Such facilities continue to attract significant investment and demand for competition places often outweighs supply. Conversely, the smaller rural operations where transport links are poor do not seem to be thriving to the same extent.
It should be noted that profitability is often not the primary motivator with equine operations. Many individuals use revenue from livery or riding lessons to fund their own hobby or interest, or are simply involved to fuel their passion for horses. The high overheads associated with running equine establishments, particularly in relation to third party insurance premiums is increasing onerous and many of the less popular stables are now struggling to remain commercially viable.
The rental value of stable hereditaments is influenced by a number of factors including:-
- location
- layout, nature and character of loose boxes
- facilities – manege, lunge rings, horse walkers, gallops
- turn-out paddocks and land
- strong hinterland of users
- good Out riding – bridleways, common land etc
- space of transporters/horse trailers
2. Changes since the last Practice note
There are no significant changes in approach, although to aid consistency across the network, advice on analysis and adjustment is reemphasised within Section 4 of this practice note.
3. Ratepayer discussions
No discussions have been held with the industry.
4. Valuation scheme
There is no agreed scheme for this class.
The purpose of this practice note is to provide costing information and other valuation material appropriate for this class of property in respect of the R2017 Revaluation. This PN should be read in conjunction with the main section.
For analysis purposes, land rental values should be adopted within the range of £120 to £200 per acre. Regard should be had to local demand, size and quality (for example sloping site/ suitability for grazing).
Other additions should be valued in accordance with the ‘2017 Cost Guide’. The resultant cost should then be amortised at 4.4% for England and 3.8% in Wales, as interim measure until the higher decapitalistion rate for 2017 is known.
When stripping out residential accommodation for analysis purposes, it is incorrect to deduct the full ‘open market value’ of comparable dwellings. An adjustment is required to reflect that rent paid on the domestic part will be lower as it forms part of a larger commercial operation. Moreover, any comparable residential rent will not be arrived at on the same basis ie residential lettings require the landlord to carry out external and internal repairs, regular inspection of electrical and gas installations and higher landlord’s insurance costs.
In the absence of better evidence a judgement needs to be made on the facts of the amount to be deducted from the residential element, to reflect any disadvantage of being sited within a commercial operation, for example a 50% deduction may be appropriate. This should reflect these matters together with any planning restrictions in place or noise/ disruption from the adjacent commercial activity.
It is acknowledged that in some locations rental evidence may be limited or require significant adjustment for this class. To ensure a consistent approach across the network, analysis and adjustment has been undertaken by the Class Coordination Team.
The Unit CCT member should be approached when dealing with both maintenance and settlement of this class.