Rating Manual section 6 part 3: valuation of all property classes

Section 1200: land valuations for the contractor's basis

This publication is intended for Valuation Officers. It may contain links to internal resources that are not available through this version.

1. Background

The land values to be used for the purposes of contractor’s basis valuations have been assessed by the VOA’s Property Services team.

The majority follow a published report for DCLG, compiled by Property Services, with additional work undertaken on land categories and regions that did not form part of that exercise, for example Wales. There is however one significant exception concerning residential values, see “2.4” below.

The valuation date of the DCLG report of 1st March 2015 is considered sufficiently close to the R2017 AVD for the data to be relevant.

2. Categories, regions and other detail

2.1 Categories

The attached spreadsheet (appendix 1) containing the data is self-explanatory, but in summary there are 6 categories of land including:

  • Residential

  • Industrial

  • Amenity

  • Car Parking

  • Agricultural

  • Commercial (i.e. offices), split into edge of town/city and out of town/city business park localities.

2.2 Regions

The categories of land are broken down regionally and in some cases (eg industrial) to Billing Authority (BA) level, see spreadsheet for more details. There are 6 distinct regions in London identified, with North and South separated by the River Thames. Tab “1” on the spreadsheet provides a look-up table for determining which BA falls into which region.

Residential values for a particular BA are based on a typically average town or city within that BA, see tab “2” for details.

Regional industrial values represent a valuation for each region, as opposed to a straight average of all the BA values.

High value airport locations have been singularly identified and valued, see tab “3” for more details.

Tab “4” provides details of extremes of values in some of the commercial category localities.

2.3 Assumed Size of Take and Density

Each value is based on a one hectare take of average density, in an average location within the relevant BA/region, with no abnormal development costs:

  • For those BA’s and regions outside London, the hypothetical scheme is for a development of 35 two storey dwellings with a total floor area of 3,150 square metres.

  • For BA’s and regions within London, the hypothetical scheme is for a multi storey development of 269 flats with a net sales area of 19,722 square metres.

This is largely considered sufficient for rating purposes, but valuer judgement may need to be exercised for exceptional density’s or quantum of land take as compared to the above.

2.4 Residential value factors

The figures shown on the spreadsheet assume that planning consent is in place and that the consent fully complies with affordable housing requirements. Note that the percentage of affordable housing required (and the tenure mix) impacts on the concluded land value. This can result in BA districts with similar base values having significantly different land values where one has a higher affordable housing requirement. It can also create apparent anomalies, for example where apparently more valuable BA’s have lower land values due to their specific, possibly more onerous, planning policies in this respect.

Rating is concerned with market value which means it is appropriate to reflect any factors that affect this; affordable housing planning policies being one such factor. In this respect the residential values shown on the spreadsheet represent a departure from the DCLG published data which assumes non-compliance with affordable housing policies.

2.5 Using the data

Valuations on a price/ha basis may be taken straight from the spreadsheet.

For all other contractor’s basis valuations based on a percentage of adjusted replacement cost, the level of percentage adopted will have been calculated by the VOA’s National Specialist Unit, informed by the data on the spreadsheet. Please consult the relevant Practice Note for the class in question for confirmation of which percentage to apply.

It is emphasised that these values are indicative and should not detract from valuer judgement in specific instances, for example quantum. The same applies to the land value categories applicable to the various property classes, these columns on the spreadsheet are also meant to be indicative, not prescriptive.

Appendix 2 contains further data, for internal use only: Appendix 2 further CB Land Value Data.

Appendix 1: Further CB land value data

2017 CB land values data

Appendix 2: Further CB land value data {:#APP2}

Land Evidence