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

Section 390: film and TV studios

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

1. National Co-ordination

Film and TV Studios are subject to co-ordination procedures outlined in the relevant Practice Note.

2. Description

2.1 General

The range of properties in this class is very diverse with substantial variations in the physical characteristics of film and television studios. They can range from purpose-built premises (with or without open air sets) through to adapted warehouse/factory or office accommodation or even a “real life” complex.

In general there are two types of TV studio, production and non-production. Main production studios contain purpose-built and designed production studios where major television series are created. Non-production studios tend to be more concerned with regional news programmes and do not have extensive studio accommodation. It should be remembered that height is a critical factor for lighting and production purposes and sound proofing is also a major consideration.

Film studios no longer tend to be occupied solely by a single large film company making numerous films of their own. The modern approach is for film makers to hire the use of facilities such as film stages, rehearsal rooms, offices, cutting rooms, dubbing and preview theatres etc in order to produce their own films.

3. Survey Requirements

3.1 Basis of Measurement

The basis of measurement for this class is Gross Internal Area. Reference should be made to the Code of Measuring Practice for Rating Purposes in England and Wales.

3.2 Plant and Machinery

Film and TV studios may contain rateable plant and machinery. Guidance will be found in RM 4:3 and the VO Cost Guide.

4. Basis of Valuation

Having regard to the wide range and type of studio, no one method of valuation can be recommended. For the larger purpose-built studio of the type occupied by the major film companies a contractors basis may be appropriate. For the smaller occupations reliance will have to be placed on a rentals basis adapted as necessary.

Practice Note 1 : 2000 : Film and TV Studios

1. Co-ordination Arrangements

This is a SRU Class. Co-ordination responsibilities are set out in Rating Manual : section 6 part 1 - practice note 1 : 2000.

The R2000 Special category Code 100 should be used. As an SRU Class the appropriate suffix letter should be S.

2. Valuation guidance

Valuation guidance on this class is outlined in Para 4 of this section RM5:390.

Whenever possible studios should be valued using the rental basis and comparing like-with-like studios. Generally film studios should be compared with other film studios, and TV with similar TV studios.

Within these categories premises often fall into those which are more in the nature of offices, and those which are more akin to warehouses. In the absence of reliable rental evidence for this class, it may be necessary to have regard to rental values relating to the more appropriate of these two uses (based upon the prevailing characteristics of the hereditament and to the “rebus sic stantibus” doctrine). An uplift should be applied to reflect any additional rateable improvements made to benefit the use of the premises as studios.

The value of some of the specialist purpose built premises may be driven by the cost of the entire structure(s).

3. Allowances

The size of the premises should be taken into account when rental comparisons are made. Allowances may be appropriate for the premises which do not cater for modern film making practices, including TV. With the development of improved technology more use has been made of direct on location filming, resulting in demand for many of the large old fashioned styles of studio falling away.

Practice Note : 1995 : Film & TV Studios

1. Co-ordination Arrangements

This class is subject to Regional Co-ordination.

Special Category Code 091 should be used for such hereditaments. The relevant suffix will be computer generated.