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

Section 560: lifeboat stations - RNLI

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

1. Coordination

This advice only applies to the Lifeboat Stations (LBS) occupied by RNLI

This class has a primary description MX Lifeboat Station and Premises and has a SCat code 420, with suffix G as it is dealt with by Group.

2. Identification

It should be noted that

  • any occupation of a distinct sales or museum area should be assessed on the prevailing rental basis.

  • any separate support facility on land should be considered for a valuation on a rental approach. It is anticipated that the contractor’s basis will only be appropriate where the shore facility is sited close to a lifeboat berth or mooring.

  • any LBS in other than RNLI occupation should be valued according to the prevailing rental basis. Please contact Beth Roberts or Laurence Hatchwell in cases where this is considered inappropriate.

  • any vacant RNLI LBS should be valued on the prevailing rental basis according to its next use.

3. Measurement

Hereditaments to which this advice applies should be measured to GIA according to the RICS Code of Measuring Practice.

Care should also be taken in the identification of the extent of the hereditament as any part of the property below the low water mark will not be rateable unless the Billing Authority’s boundary has been extended.

4. Application of the Contractor’s Basis

The contractor’s basis is to be applied to the LBS according to the type of station identified, see the “VOA classification” for photographs of the beacon category properties.

Advice regarding the costs to be applied can be found in the Practice Note.

Practice note 1: 2017: the valuation for rating of RNLI lifeboat stations:

1. Market Knowledge

1.1 Background

The Royal National Lifeboat Institution (RNLI) is the largest charity that saves lives at sea around the coasts of the UK, Ireland, the Channel Islands and the Isle of Man as well as on some inland waterways.

Founded in 1824 as the National Institution for the Preservation of Life from Shipwreck, the RNLI was granted Royal Charter in 1860 and is a charity in the UK and Republic of Ireland. The RNLI is principally funded by legacies and donations with most lifeboat crew members being unpaid volunteers The Institution does not seek funding from Central Government. Further, RNLI lifeguards operate on over 200 beaches in the UK.

The aims of the RNLI is to end preventable loss of life at sea, to reduce its carbon footprint so that donations go further and to maximise its benefit to the community. These aims are reflected in energy saving projects at its lifeboat stations and administrative offices, and an upgrade of its stations.

1.2 Lifeboat Stations

The RNLI has 237 lifeboat stations around the UK and operates a fleet of different types of lifeboats. Crews currently rescue on average 24 people a day. The 24-hour search and rescue service provided by the RNLI operates from these stations These include four along the River Thames: Chiswick; Gravesend; Teddington; and Tower, and four inland lifeboat stations at Lough Derg, Lough Ree, Enniskillen and Loch Ness.

From 2010, RNLI projects have included new boathouses at Shoreham, Bembridge, Porthdynllaen and Mumbles to accommodate Tamar all weather boats, a new boathouse at Blyth, a replacement lifeboat station at Portishead and a new floating boathouse at Burnham. There is also an eleven million pound project underway to construct a new lifeboat station at St Davids.

1.3 Lifeboat types

The RNLI has an active fleet of over 340 lifeboats, ranging from 3.8–17m in length, as well as a relief fleet. There are also four active and three relief hovercraft

Different classes of lifeboat are needed for various locations, depending on geographical features, the kind of rescue work that the station is asked to do and the cover provided by neighbouring stations. Therefore, RNLI lifeboats are divided into two categories: all-weather and inshore.

  • All-weather lifeboats (ALBs) are capable of high speed and can be operated safely in all weather. They are inherently self-righting after a capsize and fitted with navigation, location and communication equipment.

  • Inshore lifeboats (ILBs) usually operate closer to shore than ALBs, in shallower water, close to cliffs, among rocks or even in caves.

  • Hovercraft can operate in areas such as mud flats or river estuaries that are inaccessible to conventional lifeboats

  • As technology improves and boat sizes change, the boathouses sometimes undergo works of expansion to allow them to accommodate new boat design.

2. Changes from the 2010 practice note

The building costs given in Appendix B below now exclude external works and fees additions.

The standard age related allowance scale in the Rating Manual section 4 part 3 should now be applied

3. Ratepayer discussions

No discussions have taken place between any representative body or their agents

4. The Valuation Scheme

Since there is no available rental evidence for lifeboat stations, this property class is valued on the contractor’s basis

Properties should be measured to GIA.

4.1 Valuations Using The Contractor’s Basis

Being largely sea front occupations, it should be borne in mind that only those parts of a lifeboat station that are above the low water mark are to be valued for rating as local authority jurisdiction is terminated at that point. The low water mark is shown on ordnance survey maps. 4.2 Stage 1 - Building Cost And Type

Lifeboat stations fall into several types. Pictures of these types are shown in Appendix A and the valuer should therefore fit the property to be valued into one of these examples.

Having established the lifeboat station type, it is then necessary to obtain the applicable cost from the 2017 Cost Guide.

These costs are shown in appendix B and are linked to the appropriate type of station.

Lifeboat stations with exceptional design features such as Sennan with two slipways or Workington with a gantry / davit, should be matched with the closest type shown in appendix A with the additional items valued according to the costs shown in Appendix B.

The costs shown in appendix B are for ease of reference. In all cases where a cost guide code is shown that must be input into the NBS template, not the costs shown here. Where the cost guide code shows options, the costs shown in this practice note should be used to aid selection. Should the cost guide show differing costs to those shown in a current version of this practice note, please refer to the CCT

Location Factors are to be applied in accordance with the figures given in the 2017 Cost Guide

External Works are in all circumstances to be taken at a figure of 5% of adjusted replacement cost

Contract size adjustment should be made in accordance with standard scales in the 2017 Cost Guide

Professional fees are to be taken in all circumstances at a figure of 10% of adjusted replacement cost

4.3 Stage 2–Age and Obsolescence

The standard age related allowances scale contained in the Rating Manual section 4 part 3 should be applied in most circumstances

4.4 Stage 3—-Land Values

An addition should be made for the land value based on an area of two times the ground floor of the lifeboat station including areas such as a slipway that extends beyond the low water mark.

The land values to be used are shown in Appendix C for the appropriate regions

4.5 Stage 4–Decapitalisation Rate

The Effective Capital Value (ECV) of the hereditament shall be de-capitalised to an annual equivalent by taking the prescribed (higher) rate.

4.6 Stage 5

It is not anticipated that there will be any allowance necessary for fragmentation or poor layout.

The only end adjustment anticipated is due to the location of the hereditament, where a boat has to be towed through a town to reach the sea front or where the station is more than half a mile away from the nearest town of village

  1. 7 IT Support

The standard generic contractor’s spreadsheet held on the Non Bulk Server should be used for all valuations selecting “Other Valuations on Generic Contractors Basis”

Appendix A

Pictures of Lifeboat Station Types .

VOA Classification - All Weather Lifeboat Stations (Types 1-6)

(Inshore-Types7-9)

1 – Over sea, Padstow

1 - Over sea, Padstow

All Weather Lifeboat Stations - Over Sea, Padstow

2 – Land based with slipway, Shoreham

2 – Land based with slipway, Shoreham

All Weather Lifeboat Stations - Land Based with slipway, Shoreham

2a – Land based with piled slipway

2a – Land based with piled slipway

All Weather Lifeboat Stations - Land based with piled slipway - The Lizard station.

2b – Land based, Eastbourne

2b – Land based, Eastbourne

All Weather Lifeboat Stations - Land Based, Eastbourne

3 – Land based with ramp & Tractor, (Old) Hoylake. (See also ILB photo 7)

3 – Land based with ramp & Tractor, (Old) Hoylake. (See also ILB photo 7)

All Weather Lifeboat Stations - Land based with ramp and ttractor, Old Hoylake

4 – Land based with bulldozer & Tractor, Hastings

4 – Land based with bulldozer & Tractor, Hastings

All Weather Lifeboat Stations - Land BAsed with bulldozer and tractor, Hastings

5 – Mooring, Newhaven. (See also ILB 8, Poole and ILB 9, Ramsgate)

5 – Mooring, Newhaven. (See also ILB 8, Poole and ILB 9, Ramsgate)

All Weather Lifeboat Stations - Mooring, Newhaven

6 – Exceptional, Sennan (2 slipways)

6 – Exceptional, Sennan (2 slipways)

All Weather Lifeboat Stations - Exceptional, Sennan

& Workington (Davit)

and Workington (Davit)

All Weather Lifeboat Stations - Exceptional, Workington

VOA Classification - Inshore LBS (Types 7-9)

(All Weather LBS-Types 1-6)

*7 – Ramp & Tractors, Littlehampton

7 – Ramp & Tractors, Littlehampton

Inshore LBS - Ramp and Tractor, Littlehampton

7a – Station with ramp (no tractor) Happisburgh (ramp out of photo)

7a – Station with ramp (no tractor) Happisburgh (ramp out of photo)

Inshore LBS - Station with ramp (no tractor) Happisburgh (ramp out of photo)

8 – Floating, Burnham on Crouch or

8 – Floating, Burnham on Crouch or

Inshore LBS - Floating, Burnha, on Crouch

Poole

Poole

Inshore LBS - Floating, Poole

9 – Exceptional, Ramsgate (Davit for ILB)

Inshore LBS - Exceptional, Ramsgate

9 – Exceptional, Ramsgate (Davit for ILB)

Appendix B

Building Costs

Cost Guide Code Lifeboat Station Type Cost (ERC) £
99AOOA All Weather Lifeboat Station over sea with slipway 12631
99AOOB All weather lifeboat station land based with slipway 3273
99AOOC All weather lifeboat station land based with piled slipway 3978
99AOOD All weather lifeboat station land based 2625
99AOOE All weather lifeboat station land based with ramp and tractor housing 1836
99AOOF All weather lifeboat station land based with bulldozer and tractor 1768
99AOOG All weather lifeboat station over sea with mooring 2625
99AOOH Inshore lifeboat station with ramp and tractor 1768
99AOOJ Inshore lifeboat station with ramp 1521
99AOOK Inshore lifeboat station with floating housing 2210
99AOOL Additional Slipway 212160
99AOOM Additional Ramp 22100
99AOON Additional Gantry/ Davit 221000
99AOOP Walkways over Beach / Sea /linear metre 740

Appendix

Land values to be adopted

Region £ / Ha
   
SE England (Essex, Kent, East and West Sussex, Hampshire, Bournemouth, Christchurch & Poole) 75,000
North East England 30,000
Wales (South, Mid & North) 30,000
Over sea stations with slipway 16,500

Revaluation 2010: The Valuation for Rating of RNLI lifeboat stations: Practice note 1: Appendix 1

VOA Classification - All Weather Lifeboat Stations (Types 1-6)

(Inshore-Types7-9)

1 – Over sea, Padstow

2 – Land based with slipway, Shoreham

2a – Land based with piled slipway

2b – Land based, Eastbourne

3 – Land based with ramp & Tractor, (Old) Hoylake. (See also ILB photo 7)

4 – Land based with bulldozer & Tractor, Hastings

5 – Mooring, Newhaven. (See also ILB 8, Poole and ILB 9, Ramsgate)

6 – Exceptional, Sennan (2 slipways)

& Workington (Davit)

VOA Classification - Inshore LBS (Types 7-9)

(All Weather LBS-Types 1-6)

7 – Ramp & Tractors, Littlehampton

7a – Station with ramp (no tractor) Happisburgh (ramp out of photo)

8 – Floating, Burnham on Crouch or

Poole

9 – Exceptional, Ramsgate (Davit for ILB)

Revaluation 2010: The Valuation for Rating of RNLI lifeboat stations: Practice note 1

A. Introduction

1. Co-ordination Arrangements

Responsibility for this Class is with Groups. The R2010 Special Category Code 420 should be used. The appropriate suffix letter is G.

All valuations should be undertaken on the ‘Other Valuations on Generic Contractors Basis’ application, to be found on the Non Bulk Server. Addresses and Reval Case Numbers will need to be added manually, and caseworkers reminded of the importance of mirroring CDB and NBS addresses exactly, both to achieve an automatic upload for RVs and to ensure summary valuations are correctly addressed.

2. Application of the Contractor’s Basis

Once the Lifeboat Station (LBS) has been identified according to the VOA classification shown in RM Section 6 Part 3: Sec 560 Appendix 1 the contractor’s basis is to then be applied in the manner indicated as follows

Stage 1

2.1.1 Building Costs

The following overall costs psm shall be taken to represent the ERC of the LBS. These costs reflect the various facilities required including any slipway etc where appropriate.

VOA Category Brief description £ psm
All weather LBS
1 Over sea **, with slipway £14,285
2 Land based, with slipway £3,700
2a Land based, with piled slipway £4,500
2b Land based £3,000
3 Land based, with ramp and tractor housing £2,080
4 Land based, with bulldozer and tractor housing £2,000
5 Over sea ** with mooring £3,000
6 Exceptional * See notes below *
Inshore LBS
7 Land based, with ramp and tractor housing £2,000
7a Station only with ramp £1,725
8 Floating housing £2,500
9 Exceptional * See notes below *
  • LBS with exceptional layout/ additional P&M should be valued as the next closest classification of LBS with the additional items valued according to the following costs:

  • an additional slipway £240,000 per unit (e.g. Sennan)

  • an additional ramp £25,000 per unit

  • a gantry/davit £250,000 per unit (e.g. Workington)

  • Walkways - over beach/sea £840 p linear metre (e.g.Selsey)

** “over sea” stations may be in whole or part beyond the limits of rateability, i.e. outside any BA area. If a LBS is partly outside a BA area, the final LBS value should be apportioned, and only that part within the BA area should be assessed.

2.1.2 Locational Adjustment

The factors set out in VO Cost Guide for the 2010 Revaluation should be applied to the above costs.

2.1.3 External Works

External works are reflected in the above costings so no separate addition should be made.

2.1.4 Contract Size Adjustment

The aggregate of locationally adjusted building costs and external costs should be subject to contract size adjustment as set out in VO Cost Guide for the 2010 Revaluation. The allowance to be applied will be determined by the cost of the whole hereditament. Including areas beyond the BA boundary/ low water mark.

2.1.5 Professional Fees and Charges

Professional fees are reflected in the above costings so no separate addition should be made.

Stage 2

2.2.1 Obsolescence Allowances

Obsolescence allowances shall be made for individual blocks of permanent buildings after additions for external works and fees, in accordance with the following age-related scale:

Year of building completion % Allowance Commentary
Pre 1960 45-50%
1960-1985 35%
1985-1988 20% In 1989 carriage boats were redesigned making some existing boathouses too short
1989- 1995 15% In 1996 crew facility space standards were redesigned making some existing stations too small
1996-2002 7% In 2002 Part L Building Regulations revised
2003-2010 2.5%
Post 2010 Nil

Stage 3

2.3.1 Land Value

An addition should be made based on an area of 2 * ground floor area of LBS, apportioned as necessary according to area of the whole station, including e.g. slipway, beyond the BA boundary/ low water mark, and valued at the following price per hectare:

“Over sea” stations with slipway £10,000 per hec.

Otherwise:

SE England (Essex, Kent, East and West Sussex, Hampshire, Bournemouth, Christchurch & Poole): £45,000 per hec.

Remainder of England & Wales: £25,000 per hec.

Stage 4

2.4 Decapitalisation Rate

The ARC of the hereditament shall be decapitalised to an annual equivalent by taking 5% (4.5% in Wales).

Stage 5

2.5 End Adjustments

It is not anticipated that there will be any allowance necessary for fragmentation/dispersal/poor layout. The only end adjustment currently anticipated is due to the location of the hereditament.

Example 1 - Llandudno where the LBS is located away from the promenade and the boat has to be towed through the town to reach the sea front.

Example 2 - Padstow where the LBS is more than half a mile from any village or town

Practice note 1: 2005: Large shops

1. Co-ordination

This is an SRU Class. Co-ordination responsibilities are set out in Rating Manual section 6 part 1.

For Large Shops with a Gross Internal Area (GIA) over 1,850m2, the following Special Category Codes should be used: 155 (Large Shops) or 086 (Department Stores). As a Specialist Rating Unit Class, the appropriate suffix letter should be S. This Practice Note deals specifically with those Large Shops above 1,850m2 Gross Internal Area (GIA) or a Net Internal Area (NIA) of approximately 1,500m2.

The Primary Description Code of CS should be used when creating an assessment.

The Rating manual Section 6 part 3: 550: should be read in conjunction with this practice note. All definitions and size indicators found in the main manual section are intended to assist when making comparisons across wider boundaries. Rating Manual advice in respect of those shops under 1,850m2 GIA (1,500m2 NIA) is found in Rating Manual Section 6 part 3: 920 (Shops); in general such shops are dealt with by Groups.

2. Introduction

Large Shops over 1,850m2 GIA (1,500m2 NIA) have a dedicated Rating Manual 5:550, which should be referred to in conjunction with this note. Shops smaller than 1,850m2 GIA (1,500m2 NIA) are dealt with in Rating Manual 5:920

3. Overview of the Large Shops Sector at 2003

3.1. Retail Centre Ranking and Comparability

The strength of a particular retail centre to support a large shop or department store will primarily depend on the extent and quality of catchment area and the competition within it. The following indicators may be useful when comparing one retail centre with another:

  • Peak Zone A rate and its extent

  • Catchment population and demographic profile

  • Total retail sales space (the critical mass)

  • Total retail sales space of all large shops /dept stores excluding food stores

Town ranking can also be a useful tool when comparing one centre with another. Various research organisations periodically produce league tables of retail centres. However, it is important to establish the basis on which such league tables are constructed before placing too much reliance on them. The quality of the core data and the criteria on which these rankings are made can vary quite substantially.

It is important to compare like with like. For example, in 2003 the following could still be considered to be in the “Premier League” of traditional city shopping centres: Birmingham, Manchester, Newcastle, Leeds, Cardiff, Bristol.

Equally, the following modern Regional Centres could be considered together: Lakeside, Bluewater, Meadowhall, Metro Gateshead, Trafford, Merry Hill, Cribbs Causeway, White Rose.

It should also be noted that it remains difficult to place London centres within any national framework because of the unique nature of this particular market.

3.2. Type of Large Shop

Previously, large shops have been considered comparable in discreet groupings; however, over the last 5 to 7 years these distinctions have become much more blurred. Operators increasingly move into larger and more varied premises and it is therefore advisable to view the demand in any given area as one for ‘large space’. The only possible exception to this blurring of boundaries could be certain larger traditional department store buildings if there is supporting evidence for a distinct and identifiable requirement, or demand.

In addition to the traditional High Street operators, there has been a recent trend for new operators to come to the market for large space, predominantly entering at the bottom end of the size range.

3.3. Size Considerations

Although this note deals generally with Large Shops over 1,850m2 GIA (1,500m2 NIA), in practice the threshold size at which a large shop should be valued on an overall basis (as opposed to zoning) is not so precise. Broadly speaking, the way that relevant evidence is analysed will indicate the approach taken and any threshold is likely to differ depending upon a variety of factors linked to town ranking and location. For example, it is likely that higher value locations have a higher threshold than poorer ones. Similarly, whilst there is a tendency for unit value to fall as size increases, this does not necessarily mean that the smaller store in a given area will always have a higher unit value than a larger one. This can be offset by other factors, such as location and layout.

The size of the store should be considered in relation to the retail centre and catchment that it serves. It is possible that some (usually older) stores are now oversized for the strength of their location. This is particularly true of certain small/ medium provincial centres where values have been relatively static in recent years, a possible reason for this being the strength of larger shopping centres in a particular locality.

3.4. Measuring Practice

Valuers should always consider the percentage of net space to gross space (NIA to GIA); this is important as the percentage can vary considerably store by store. A common reason for the difference will be due to varying numbers of floors and a resultant increase in unusable space. All other things being equal, a lower percentage should result in a lower overall value. This is why it continues to remain important to calculate and record both GIA and NIA when referencing large shops.

Generally, retailers will generally be looking for NIA of between 85-95% of GIA in a modern store.

4. Rental Adjustment and Analysis in 2003

In general, any adjustments to value should be evidenced by rents wherever possible. For further details, refer to Rental Adjustment Practice Note at RM 4:5 and also the main Rating Manual Section at Rating Manual 5:550, paragraph 5.

4.1 Initial lettings and the modern lease

It is now common practice for modern leases to incorporate side agreements (or side letters), which detail pertinent matters that need to be taken into account when adjusting the initial (or headline) rent. These matters typically take the form of rent-free periods and /or capital contributions given by the landlord, but could specify other factors too. These arrangements are often a means whereby the landlord can ensure a higher initial rent constitutes the minimum rent that can be paid following subsequent review(s), assuming the lease contains an ‘upwards only’ clause and has no break clauses. It will often be the case that amortisation over an inappropriate period of years produces a distorted answer – this can be a reflection of complex financial arrangements and not a true reflection of open market value. It is therefore important to establish the full facts in each case in order to determine the exact extent and intention of a particular inducement offered.

4.2 Fitting out and other Tenants Improvements

Almost all new shops are let on a shell basis with the tenant responsible for fitting out. The nature of the shell, and therefore the degree of tenant fit out required will vary and full facts should be established before adjusting rents.

Although not a substitute for the adjustment of actual costs (where known) expended on fitting out the subject property, it is current market practice to convert shell rents to arrive at a fitted basis by applying percentage uplifts.

This issue was considered at length for the 1990 List and the advice given in RM 5:550 Practice Note 1 1990 should continue to form the basis for 2005. Not all the percentages quoted in that Practice Note are agreed with the ratepayers’ agents.

4.3 Covenant to trade

These are usually referred to as ‘keep open’ clauses. They will normally be included in a lease where the landlord wishes to ensure that a tenant does not close down and leave the premises empty, and/or where the landlord wishes to control the trading times that the tenant operates. The tenant often regards such clauses as onerous, because they restrict the ability to make commercial decisions. The value effect of such clauses will depend upon the severity of the restriction and location of the store; however, allowances of around 5% are commonly agreed on reviews to reflect this restriction.

4.4 Non-alienation clauses

Where these are included in a lease, it should not automatically be assumed that the rental level has been affected. It is essential that full details are obtained in each case before an adjustment for non-alienation is considered.

4.5 Length of Lease Term

Shop leases are becoming increasingly shorter (90% of new leases are now made for 15 yrs or less). It therefore follows that a long lease (or long remaining term of an historic lease) may be perceived as a disadvantage for which an adjustment is warranted. Detailed information needs to be established in each case. Any such consideration would be distinct from ‘overage’, which is an adjustment made to reflect abnormally long review patterns.

4.6 Turnover Rents

Turnover rents are becoming increasingly common, especially in modern shopping centres. There are various forms of turnover rent, but the most common is probably where a base rent is agreed (say 80% of Open Market Value) together with a ‘top up’ provision if turnover exceeds a certain level. See RM 4:5:Part 16 for further information regarding turnover rents.

4.7 Other factors and weighting of evidence

The above are just some of the more common factors to potentially have an effect on rental value in terms of RV. Leases are becoming increasingly complex and Valuers must always be alert to any issues that may have had an effect on the passing rent.

Consideration should be given to the appropriate weight to be attached to:

  • Rents on new lettings

  • Agreed rents on review

  • Review rents determined by independent expert

  • Review rents determined by arbitrator.

Rents at or around the Antecedent Valuation Date (AVD) of 1 April 2003 will be paramount, but rents fixed up to two years either side of this date will still be important, albeit potentially subject to an appropriate adjustment for rental growth. Clearly, as the time gap increases between a rent date and AVD, the weight that can be attached to such evidence will diminish.

5 Possible Adjustments in Value

In general, any adjustments to value should be evidenced by rents wherever possible. For further details, refer to Rental Adjustment Practice Note at RM 4:5 and also the main Rating Manual Section at Rating Manual 5:550, paragraph 5.

5.1. Sales Ratios

Generally, the number of sales floors is expected to display a sense of proportionality relative to the size of the store. It would be misleading to prescribe any standard, but clearly larger stores can accommodate multi sales floors without losing proportionality. Valuers should consider a reduction in unit value if, for example, there is a high number of sales floors on a small footplate. The location and availability of inter floor access via stair/lift/escalator is also an important consideration.

EPOS and ‘Just in time’ systems have revolutionised stock control in recent years, which has resulted in a lesser need for storage accommodation. The demand for stock areas will therefore vary from operator to operator. There are many instances where redundant stock areas have been converted to sales, but there will be instances where space is genuinely surplus. Careful consideration must be given to whether this is a result of the actual operators preferred way of working, or whether it can be assumed that there would be no demand for the space from any potential tenant.

5.2. Effect of prevailing Zone A levels on Large Shops

The Zone A level of any particular location, whilst of interest, should not be decisive in determining the value of large shops, but it is indicative of that location’s retail strength for unit shops. Large shops and department stores are by their very nature ‘destination’ stores and can create their own footfall. Unit values should not vary in direct proportion to Zone A levels derived from standard shops.

5.3. Modern Servicing arrangements

Loading and servicing arrangements are often less than ideal in traditional High Street locations; where these arrangements are exceptionally poor, values may be affected. Conversely, arrangements in modern mall developments are usually far more satisfactory and are unlikely to warrant any adjustment to unit value.

5.4. Accessibility/Visibility within the shop

Higher than average changes in floor level, a high incidence of structural walls and generally any impediments affecting internal vision and efficient sales layout may depreciate value. Retailers generally prefer fewer sales floors of regular shape.

5.5. Secondary pedestrian shopper access points

The value effect of any secondary access for shoppers will depend on its nature. Good secondary access (e.g. from the rear of a High St store into a modern shopping mall) is a distinct benefit to a large store and this should be a factor to be reflected in the unit price adopted. Conversely, too many access points (especially to non retail streets) can give rise to increased security and staff costs.

5.6. Combined Effect of Valuation Adjustments

Comparison of one property against another by reference to each of the above criteria is not going to provide the full picture. It often proves misleading to isolate individual adjustments and Valuers should take a step back, having regard to the combined effect of these features on the value of any individual property, and ultimately on the sector overall.

It is important that the correct comparables and methods of comparison are used. Emphasis must be placed on town ranking (using peak Zone A as a guide), type of store, its size and location. Care must be taken when drawing comparison with stores that, although located in the same retail centre, have very different features. It is clear from evidence in the property press and elsewhere that, when determining rent reviews/renewals and new lettings, recourse is often made to the wider rental evidence available from similar stores across the country.