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

Section 585: colleges of further education

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

1. Scope

This addresses Colleges of Further Education, the new “University Technical Colleges” which despite their name are not University hereditaments, and Police Training Colleges. Reference is made to he 2007 Lands Tribunal decision in the Truro College case, which is of enduring relevance in the choice of valuation method, between rental/comparative and contractor’s basis.

1.1 General:

.The hereditaments to which this Section refers are Colleges of Further Education within the definition of “educational hereditament” (see RM5:370). It also includes Police Training Colleges with accommodation and facilities of a similar standard to that of a college of further education

1.2 Definition:

The term “further education” covers all types of post-school education apart from that given in Universities and Colleges of Higher Education. It includes sixth form colleges and tertiary colleges (ages 16 - 19). All such institutions are now independent of Local Education Authorities and are funded by the Skills Funding Agency in England, and the Welsh Government Department for Education and Skills (DfES) in Wales.

1.3 University Technical Colleges (UTCs):

UTCs are colleges for students aged 14 to 19 which specialise in technical studies and are sponsored by a university. They offer full time courses which combine practical and academic studies. Although technically outside the Further Education sector, the valuation advice contained in this section and the associated Practice Notes provides appropriate valuation guidance.

2. List Description and Special Category Code

2.1 List Description: College and Premises

2.2 Special Category Code 065 should be adopted. Suffix: G/S.

2.3 This is a split class and suffix G or S should be used. The size of the hereditament and its complexity will determine the G or S classificationand liaison should take with the NDR Unit Specialists to agree which is the most appropriate.

3. Responsible Teams

Each individual Unit is responsible for the valuation and assessment of colleges of further education.

4. Co ordination

This Class is dealt with by Specialist Teams in NDR Units. The Class Co-ordination Team and the Civic Valuation Panel have responsibility for this class ensuring effective co-ordination across the business units. The team are responsible for the approach to and accuracy and consistency of colleges of further education valuations. The team will deliver Practice Notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating list. Caseworkers have a responsibility to: •follow the advice given at all times

  • not depart from the guidance given on appeals or maintenance work, without approval from the co-ordination team

  • seek advice from the co-ordination team before starting any new work

5.1 Replacement Costs

In estimating replacement costs regard should be had to costs appropriate to provide suitable replacement buildings of an acceptable standard. The building to be costed in Stage 1 of the contractor’s best is not necessarily an exactly similar structure. A more simple modern substitute may be acceptable, perhaps more appropriate for the occupier’s needs. It is however emphasised that each case turns on the requirements of the occupier, and in determining whether a similar building or a simpler substitute would be required, it is necessary to examine all the requirements of the occupier, functional and aesthetic, as they existed at the antecedent valuation date.

5.2 Site Value

In their decision in the Cambridge Colleges case (Downing College & Others v Cambridge CC and Alsop (VO) 1968 RA 603) the Lands Tribunal thought that “college land should be valued in the light of residential values” even where situated on the opposite side of the road to a commercial frontage. Some colleges of further education, particularly in London, could fulfil their particular function satisfactorily if situated on a less valuable site provided that adequate transport facilities were available. The object should be to assess the cost of a site which would enable the college to function equally well.

In all of the appeal cases concerning colleges or other educational establishments where the contractors basis has been used, undeveloped areas (primarily unencumbered by buildings) e.g. sports fields, amenity land etc. have been valued at much lower figures than residential development land values, often by comparison with similar properties valued separately in the locality.

6. Survey Requirements:

Cost information is mainly derived from analysis to Gross Internal Area (GIA) as defined in the VOA Code of Measuring Practice. Referencing details should therefore be compatible and measurements taken in accordance with the Code. Net Internal Area (NIA) will be required where a rental/comparative valuation method is to be used (see Basis of Valuation below).Therefore guidance on the measurements to be taken should be obtained from the valuation case owner before inspection.

Surveys should record the use of all space. Where areas are unused, enquiry should be made and noted as to their use in the future, or otherwise.

7. Survey Capture

Surveys and plans should be stored in the property folder of the Electronic Document Records Management (EDRM) system.

8. Valuation Approach

In the absence of any rental evidence for this class, the contractor’s basis should be adopted. This does not exclude the possibility that rental/comparative evidence should be used. In deciding whether comparison should be made with non-educational property, regard should be had both to the existing physical state of the hereditament, and to its mode and category of occupation. Comparison may only be made between hereditaments in the same category of occupation, except where specific evidence indicates that hereditaments in different modes/categories attract similar rental levels. Instances where there is a practice by the College, or by other Colleges in the area, of renting or purchasing comparable office accommodation at full office values would, for example, provide such evidence. The planning status of a particular use is not necessarily indicative of mode or category of occupation for rating purposes, but where general office use is unlikely to be permitted, a hereditament used as College offices should not be valued on office tone, unless rents actually paid for College use indicate otherwise.

Valuation considerations:

8.1 Application of the Contractor’s Basis:

For this class a scheme of valuation is to be applied where the contractor’s basis is used. The details of this scheme are set out in therelevant Practice Note for each rating list.

8.2 Community Accommodation: unit of assessment:

At some colleges, community facilities may have been constructed, generally a leisure centre or swimming pool. This accommodation will generally be open to the public outside normal college hours. The normal requirements of rating law should be followed to identify the rateable occupier. When this is not the occupier of the remainder of the school, the community accommodation should be separately assessed. Identification of the occupier in cases where use is shared between the college and the community may be difficult. The object should be to identify the body which has paramount control. Nominally this is likely to be a management committee on which either, on one side the college, or on the other the local authority, has a majority vote. In practice such a body may exercise no effective de facto control, and it is more correct to have regard to whether the college/local authority appoint the staff, set opening hours, control services and manage the maintenance; if so it should be presumed that they are in paramount control and the community accommodation should be considered to be part of the school hereditament. Where the community accommodation is part of the college hereditament, the decapitalisation (decap) rate appropriate for “educational hereditaments” should be applied, except in the rare circumstances where the community use of the hereditament as a whole is clearly predominant. It is not possible to apply different decap rates within the same hereditament.

8.3 Community Accommodation: decap rate:

Where the community accommodation is separately assessed on the contractor’s basis, it will normally attract the higher prescribed decap rate. But if the hereditament is used more by the college than by the community it may fall within the definition of “educational hereditament” and qualify for the lower rate. In assessing use more regard should be had to numbers of college and community users, than to time reserved for college and community use. No such hereditament can qualify for lower “educational hereditament” decap rate unless it was constructed or adapted for use for the purposes of a college. Where college accommodation is used occasionally for non-educational purposes, such use should be regarded as de minimis, and will not prevent application of the appropriate “educational hereditament” decap rate.

8.4 Exemptions:

Any part of the hereditament referred to in Paragraph 16 of Schedule 5 to the Local Government Finance Act 1988 should be regarded as exempt from rating and therefore ignored for valuation purposes. Such areas can include accommodation set aside for special educational and resource facilities to provide accommodation for pupils coming within the definition of “disabled” or “illness” referred to under paragraph 16. Such definitions can include “incomplete development of the mind” and pupils recovering from an illness or a disability. Questions arising as to whether pupils are suffering from a disability or illness as defined for the purpose of this exemption are a matter for a medically qualified opinion, this should be sought from the institution in occupation.

9. Valuation Support

All valuations should be entered onto the Non-Bulk Server under the relevant Scat Code.

Other support available:

  • Survaid

  • Class Co-ordination Team

Practice note 1: 2017: Revaluation 2017: The Valuation Basis for rating of colleges of further education

1. Market Appraisal

Further Education (FE) generally operates as a series of local catchment areas, which are largely defined by travel-to-learn patterns. Learners and employers primarily choose training they can reasonably commute to on a regular basis. As a consequence, providers recruit the majority of learners from within a short distance (5 miles) of their institution. This pattern is largely consistent across rural and urban areas. There are, however, opportunities for providers to deliver provision in new geographical areas, for example by using outreach centres or offering online and distance learning.

Each local area is generally characterised as having a few large providers (usually colleges) and many smaller providers. Differences in provider size are typically a function of the level of public funding received.

In England colleges generally receive a higher proportion of their income (from 60% to 80%) from the Education Funding Agency to deliver classroom based learning for young people.

In Wales colleges are funded direct from the Welsh Government Department for Education and Skills (DfES).

In addition, colleges have access to funding to deliver higher education provision, either by franchise arrangement with a University or directly from the Higher Education Funding Council for England (HEFCE) and Higher Education Funding Council for Wales (HEFCE). As a consequence, colleges can account for a relatively high proportion of a given local market.

For England, in December 2011, the Government published its reform strategy for the FE and Skills system (‘New Challenges, New Chances’) to further position the sector to be able to respond effectively to learner and employer demand. The FE reform programme supports competition and innovation in the sector by giving providers greater control over how they manage their businesses.

For Wales education is fully devolved, and the Welsh Government published the paper “Transforming Education and Training Provision in Wales in 2008, which outlined their plans to make this sector more collaborative and reduce inefficiencies with a view to improving post 16 learning opportunities. This has led to several Colleges of Further Education in Wales merging. Additional information can be found in the National Assembly Research Paper that was published in April 2013 (Further Education Structure in Wales).

2. Changes from the last Practice Note

Where there is adequate rental evidence, Colleges of Further Education will be valued on rentals, otherwise they will be assessed by reference to the contractors basis. There are a number of changes to the approach to valuation most notably at stages 1 and 2. These are detailed below.

  • The costs to be applied at Stage 1 relate to the modern substitute and do not vary with the age of the actual building. These costs will be derived directly from the Cost Guide.

  • Adjustments to take account of the deficiencies of the actual hereditament in terms of physical, functional and technical obsolescence are made at Stage 2.

  • The costs relating to temporary buildings and out buildings (other than sports buildings) do not incorporate age and obsolescence allowances which are now referred to separately.

  • The costs relating to external works and fees are now given separately from the building costs

3. Ratepayer Discussions

No discussions have so far been held either with ratepayers or their representatives and none are anticipated.

4. Valuation Method

The following basis is also to be used for Police Training Colleges with accommodation and facilities comparable to a college of further education.

4.1. Building Costs

The costs shown in Appendix 1 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

Reference should be made to Colleges of Further Education, Category 1, 2, 3 and 4 buildings in the Cost Guide.

4.2. Multi-storey Allowances

An allowance of 7.5% overall should be made to the whole of individual pre-2005 buildings, of 4 or more floors where there are no lifts or they are inadequate. In the absence of evidence to the contrary, it will be assumed that pre-1980 buildings have inadequate or no lifts, but those completed between 1980 and 2005 have adequate lifts. Buildings completed in 2005 and afterwards will have adequate lifts to comply with the Disability Discrimination Act and relevant Building Regulations. Each principal building should be considered separately and 2 lifts are considered adequate.

This allowance is intended to reflected the operational difficulties of housing a college in a multi-storey building. In particular, they reflect the problems of students moving between different storeys. Where the lower floors of a building are larger than the upper floors, the caseworker will need to make a judgement as to the extent to which the extended parts of the lower floors should also benefit from the multi-storey allowance. This will depend on the use of the extension in the context of the use of the building. Where the use in the extension is related to the use in the building then it will be appropriate to apply the allowance to the extended part.

4.3. Flat Roof Allowances

Allowances attributable to the presence of a flat roof have been amended to accord with current advice as to both the durability of modern coverings and market perception. Buildings with a flat roof are to receive an end allowance as follows:
a) £80m2 is to be applied to the footprint of the flat roof for buildings constructed up to and including 2004.

) £60m2 is to be applied the footprint of the flat roof for buildings constructed after 2004.

Where a building has varying roof types a reasonable apportionment should be made to arrive at the allowance.

What is flat as opposed to a pitched roof will generally be self-evident. In instances where an allowance is sought for pitched roofing caseworkers should seek advice from the National Specialist Unit before proceeding.

4.4. Location Factors

All costs will be adjusted for location in accordance with the Cost Guide.

4.5. Allowance for Obsolescence and build quality

Age and obsolescence allowances should be applied in accordance with the appropriate scale in the Rating Manual section 4 part 3 and may be appropriate for some sports features. Obsolescence allowances may also be appropriate for Category 5 buildings.

4.6. External Works External works will be added according to Appendix 2 4.7. Professional Fees Professional fees will be added to the unit building costs at the percentages shown in the Cost Guide

4.8. Contract Size Allowance The aggregate of locationally adjusted building costs and external costs are subject to contract size allowance and will be determined by the cost of the whole hereditament including that of domestic and exempt areas. The allowance is determined by the Effective Replacement Cost [ERC] adjusted by location factor and exclusive of external works addition and of professional fees.

The Cost Guide should be referred to for more information on the application of contract size allowances.

4.9. Land Value

Land within the hereditament is to be valued in two categories. a. Developed land consisting of the footprint of all buildings, associated landscaped areas, roadways, car parks and hardstandings, paths, hard sports surfaces and open air swimming pools. It will normally consist of the whole site of the college, less playing fields. The value of this category of land will be taken as a percentage of total aggregate adjusted replacement cost. The percentages are set out in Appendix 3. b. Undeveloped land will consist of the area of playing fields together with any associated landscaping, but excluding the footprint of any associated buildings and specialised sports surfaces e.g. all-weather surfaces, tennis courts and open-air pools. Areas which are of no practical use (e.g. shelter belts and steeply sloping banks) should be ignored. Advice on undeveloped land value is provided in Appendix 3.

4.10. Stage 5 End Allowances

Any advantages or disadvantages which might affect the value of the occupation of the hereditament as a whole should be reflected at this stage. An adjustment under this heading should not duplicate adjustments made elsewhere, e.g. in arriving at the developed site value by adopting a percentage of the adjusted ERC, recognition has already been made in broad terms of any disadvantage caused by the land being encumbered by older buildings which may be larger than their modern equivalent. Allowances may be made for exceptional dispersal and poor layout etc. Consideration must be given to the inherent qualities of this property class. It is common for educational institutions to comprise buildings which are physically separate and only in those exceptional cases where this characteristic leads to actual identification of operational disadvantage/expense should any end allowance be considered. In considering these points the presence or effects of any domestic buildings should not be discounted. The maximum allowance must not exceed 15% for a combination of the worst features, excluding any flat roof allowance.

4.11. Decapitalisation

The adjusted cost, net of allowances, and including land value, is to be decapitalised at the lower prescribed rate.

Appendix 1

Unit Costs, Cost Guide Reference and Building Use Classification

Main Buildings (Category 1) Sports Hall (Category 2) Temporary & Portable Buildings (with WC) (Category 3) Temporary & Portable Buildings (without WC) (Category 3) Living accommodation (Category 4) Training workshops ( Category 5)
£1,766 42AC01 £1,011 42AC02 £709 42AC04 £619 42AC05 £1,097 42AC06 £1,171 42AC07

Sports Facilities

Indoor pool Open air pool 'in ground' psm Open air pool 'prefabricated' psm Insulated corrugated plastic  roofing open air pools psm Squash courts psm Tennis courts each
£2,089 STD020 £1,275 63Z00T £1000 63Z00Y £364 63Z00S £1268 STS033  53U00B-53U70P
Athletics tracks 6 lane synthetic each Athletics tracks 8 lane synthetic each Athletics tracks 2 lane synthetic (with 4 lane home) each            
£435,087 63P00A £592,321 63P00C £190,954 63P00L
Sports Grounds Floodlighting All weather artificial turf pitches psqm Tarmacadam playing surfaces (sports use not playgrounds) psm Crushed stone or 'Redgra' playing surfaces psm
  63P10A-63P20P £65/£106/£88 STK020,STL020 & STM020 £42 & £30 33U030 & 33U025 £38 33U010

Building Use Classification 1) Category (1) Buildings: Main college buildings, whether of traditional or system build construction, intended for permanent use. Broadly these will comprise the following; class space and other teaching areas, assembly halls, dining halls, administrative offices, staff rooms, libraries, kitchens, music rooms, sports halls in which are structurally an integral part of main college buildings, stores which are structurally integral to the main college buildings. 2) Category (2) Sports buildings i. Sports Halls All sports halls, together with standard ancillaries. Standard ancillaries include: WCs, changing rooms, ablutions, viewing gallery and fitness room. The cost level given above is appropriate for all Category 2 Sports Halls. ii. Indoor Swimming Pools. Other specialised sporting facilities not contained in buildings (e.g. tennis courts, open air swimming pools, athletics tracks) are costed as special external works, see Table above 3) Category (3) Temporary Structures This category includes temporary buildings, and older hutted accommodation which has a limited life and which has not been brought up to the standard of Category (1) buildings. Buildings within this category should normally be used to provide overspill classroom accommodation, intended to have a relatively short use, and be of inferior construction/specification to those in Category 1. Typically, Category 3 buildings will be portable structures on pier foundations. Although “Horsa” and other sectional concrete constructions of similar standard are neither temporary nor easily portable, they should nevertheless be included in this Category unless they have been substantially improved internally and externally and have been brought up to the standards of Category 1 buildings. This category should also include stores which are not a structurally integral part of the main college building. The costs for all Category 1, 2 and 3 buildings are exclusive of fees and external works. They are subject to the locational adjustment factors set out in the Cost Guide. 4) Category (4) Living Accommodation Generally Category (4) buildings will be caretaker’s houses. A few colleges may provide accommodation for students; where a hereditament is occupied partly for non-domestic and partly for domestic purposes, it will be regarded as composite. When dealing with such hereditaments, it should not be assumed that any domestic accommodation is absent, but that it forms the subject of a separate and contemporaneous tenancy held by the same occupier of the remainder of the college hereditament. Account should be taken of the presence or absence of such accommodation to the extent that the value of the non-domestic part is affected. 5) Category (5) Training Workshops These are Industrial type buildings used as Workshops for Training. The use of this type of building for partial or occasional academic instruction associated with the vocational training should not prevent the building from being considered as a training workshop.

An illustrative description of the main characteristics of a modern Category 5 building is: Light steel frame, 100mm brickwork infill to 1.0m height, profile 6 corrugated sheet cladding above. Translucent sheet glazing. Electric power, water toilets. Central heating. Such buildings are likely to have been built after 1975.

Older workshops may be constructed from different materials. Where it can be established that the modern replacement for older buildings used for this sort of vocational training would fall within the above description then they may be considered Category 5. Otherwise, they will fall within Category 1.

This classification should only be used to cost buildings which fall into the above descriptions. It is unlikely that buildings used for or by the Estates or Works Departments of Colleges are Category 5. It is more likely that they will fall into Category 1 and/or 3 and should be valued by reference to the costs as provided above.

Modern Category 5 buildings have evolved and often include more teaching classrooms, with a higher specification than the older Category 5 buildings. These teaching classrooms should be treated as Category 1 buildings. The two uses within such buildings (a) technical training and (b) academic training should be segregated and valued accordingly.

(6) Minor Buildings Small buildings such as meter houses, sheds and stores with individual Gross Internal Areas [GIA]s of less than 26sq m should not be costed, as they are reflected within the addition for external works.

Appendix 2

External Works Addition

Classification Description Percentage Addition
Restricted Site
Town centre or island site, typically with 90% or greater building ratio, no more than a small yard or garden area, and either no car parking or a very limited number of spaces 2
As above, but typically with an 80-90% building ratio, limited parking, external lighting and landscaping and some boundary fencing 2.5
Intermediate Site Site typically 50-75% building ratio, some landscaping around buildings, secure boundary fencing, adequate parking and external lighting   5
As above, but typically with 25 – 50% building ratio, landscaping around buildings, secure boundary fencing, external lighting, adequate car parking which falls short of full requirements 7.5
Extensive Site Site typically with about 25% building ratio, landscaping around buildings, secure boundary fencing, external lighting and adequate parking for all staff and visitors 12.5

Notes 1. The plot ratio is the building GIA expressed as a percentage of the total site area (including building footprint). 2. An appropriate percentage addition should be chosen from the above ranges to reflect the extent of external works within the hereditament using plot ratio as an indicative guide only. APPENDIX 3 Developed and Undeveloped Land Value

Region Developed Land % of adjusted ERC Undeveloped Land per ha
South East 13.5 £60,000
East Midlands 4.25 £75,000
East 14.25 £50,000
North East 4.25 £75,000
North West 9 £50,000
South West 8.25 £75,000
West Midlands 7.5 £75,000
Yorkshire & Humberside 8.5 £75,000
Central London North 51 £325,000
Central London South 25.5 £300,000
Greater London NW 11.25 £500,000
Greater London SW 29.5 £300,000
Greater London NE 16.5 £375,000
Greater London SE 21 £250,000
Cardiff 16.25 £40,000
Rest of South Wales 9 £35,000
Mid & North Wales 6.75 £30,000

New Challenges, New Chances Further Education and Skills Reform Plan: Building a World Class System’, BIS, 2011. This is available here

Practice note 1: 2017: Revaluation 2017: The Valuation Basis for rating of colleges of further education

1. Building Categories and Costs

1.1 Descriptions

Buildings occupied by Colleges of Further Education will fall into one of the five categories for valuation purposes:

Category (1) Main college buildings

Category (2) Sports buildings

Category (3) Temporary buildings

Category (4) Living accommodation.

Category (5) Training workshops.

Category (1) Buildings: Main college buildings, whether of traditional or system build construction, intended for permanent use.

Broadly these will comprise the following;

class space and other teaching areas

assembly halls, dining halls

administrative offices

staff rooms

libraries

kitchens

music rooms

sports halls in which are structurally an integral part of main college buildings

stores which are structurally integral to the main college buildings.

Category (2) Sports buildings

i. Sports Halls (Basic and Superior)

All sports halls, together with standard ancillaries. Standard ancillaries include:

WCs, changing rooms, ablutions, viewing gallery and fitness room.

The cost level given in Table 1A is appropriate for all Category 2 Sports Halls.

ii. Indoor Swimming Pools.

Other specialised sporting facilities not contained in buildings (eg. tennis courts, open air swimming pools, athletics tracks) are costed as special external works, see Table 1B.

Category (3) Temporary Structures

This category includes temporary buildings, and older hutted accommodation which has a limited life and which has not been brought up to the standard of Category (1) buildings. Buildings within this category should normally be used to provide overspill classroom accommodation, intended to have a relatively short use, and be of inferior construction/specification to those in Category 1.

Typically, Category 3 buildings will be portable structures on pier foundations. Although “Horsa” and other sectional concrete constructions of similar standard are neither temporary nor easily portable, they should nevertheless be included in this Category unless they have been substantially improved internally and externally and have been brought up to the standards of Category 1 buildings. This category should also include stores which are not a structurally integral part of the main college building.

The costs for all Category 1, 2 and 3 buildings are inclusive of fees and external works. They are subject to the locational adjustment factors set out in Table 1D.

Category (4) Living Accommodation

Generally Category (4) buildings will be caretaker’s houses. A few Colleges may provide accommodation for students; where a hereditament is occupied partly for non-domestic and partly for domestic purposes, it will be regarded as composite. When dealing with such hereditaments, it should not be assumed that any domestic accommodation is absent, but that it forms the subject of a separate and contemporaneous tenancy held by the same occupier of the remainder of the College hereditament. Account should be taken of the presence or absence of such accommodation to the extent that the value of the non-domestic part is affected.

Category (5) Training Workshops

See Appendix 1 for guidance on the identification and valuation of Category 5 buildings.

1.2 Building Costs

1.2.1 The cost guidance to be adopted for Categories 1 and 2 buildings is set out in Table 1A below. The costs specified are inclusive of external works (other than those separately costed; see para 2 below), and professional fees. The costs in Table 1A are subject to adjustment for location, by reference to the location factors set out in Table 1D.

COMBINED OBSOLESCENCE ALLOWANCE & BUILD QUALITY ALLOWANCE

TABLE 1A

Date Pre 1956 £558 Cat 2 Sports Hall £426 Cat 2 Indoor Pool £626
1956 £551 £426 £626
1957 £546 £426 £626
1958 £511 £426 £626
1959 £521 £426 £626
1960 £529 £426 £626
1961 £531 £426 £626
1962 £532 £426 £626
1963 £533 £426 £626
1964 £534 £426 £626
1965 £535 £419 £615
1966 £536 £429 £630
1967 £538 £439 £645
1968 £532 £449 £660
1969 £533 £460 £675
1970 £534 £470 £690
1971 £534 £481 £706
1972 £536 £491 £721
1973 £545 £502 £737
1974 £584 £513 £753
1975 £627 £524 £769
1976 £652 £538 £796
1977 £674 £552 £823
1978 £695 £567 £850
1979 £750 £581 £878
1980 £805 £596 £906
1981 £850 £611 £935
1982 £860 £626 £964
1983 £872 £642 £994
1984 £918 £657 £1,024
1985 £929 £673 £1,055
1986 £941 £689 £1,080
1987 £953 £705 £1,105
1988 £976 £722 £1,131
1989 £1,020 £738 £1,157
1990 £1,034 £755 £1,183
1991 £1,046 £767 £1,197
1992 £1,058 £785 £1,226
1993 £1,071 £804 £1,256
1994 £1,083 £824 £1,285
1995 £1,095 £842 £1,319
1996 £1,106 £851 £1,333
1997 £1,118 £860 £1,348
1998 £1,130 £870 £1,362
1999 £1,143 £879 £1,377
2000 £1,154 £888 £1,392
2001 £1,161 £893 £1,399
2002 £1,167 £898 £1,406
2003 £1,271 £902 £1,414
2004 £1,277 £907 £1,421
2005 £1,442 £912 £1,428
2006 £1,449 £916 £1,436
2007 £1,456 £921 £1,443
2008 £1,464 £926 £1,450
2009 £1,471 £930 £1,458
2010 £1,625 £935 £1,465

In the case of indoor swimming pools the above costs may be increased by up to 15% for facilities of better specification, including superior changing facilities, showers and toilets.

The date of any building shall be taken to be 12 months prior to its first use. Where a building has been substantially altered at a later date, its date for the purpose of these tables should be adopted as being representative of the building as a whole.

Hereditaments constructed post 2010 should be costed having regard to their actual costs adjusted to AVD. Post 2010 extensions and new buildings to existing hereditaments should be similarly treated if the post 2010 buildings comprise the majority of the hereditament by GIA. In all other circumstances post 2010 buildings should be costed at the 2010 level.

1.2.2 For Category 3 Buildings the following costs should be applied (subject to the location factors in Table 1D), without further distinction as to age:

Adjusted £/m2 Category 3 Adjusted £/m2 Category 3
Date Temp, no WC Temp, with WC
Pre 1995 341 398
1995 –1999 487 572
2000 – 2002 557 654
2003 Onwards 587 685

Temporary buildings fitted out as laboratories with additional services may be costed at a higher rate at valuers’ discretion.

1.2.3 For Category 5 Buildings see Appendix 1.

2. Costs of Special External Features

All external works are reflected in the costings set out in Table 1A, except for:

open-air or plastic-covered swimming pools

tennis courts

minor buildings used for specific sports

athletics tracks

other specialised sports surfaces (but not those regularly used as playgrounds other than for organised sport).

The costs, including professional fees, appropriate for these features are set out in Table 1B and are subject to the location factors in Table 1D.

TABLE 1B

open air swimming pool (“in ground”) £846 per sq m water surface area;

open air swimming pool (prefabricated) £577 per sq m water surface area;

insulated corrugated plastic roofing to open air pools £359 per sq m GIA;

squash courts £710 to £960 per sq m;

tennis courts (grass or hard) £17000 per court;

athletics tracks :

6 Lane Synthetic £400,000

8 Lane Synthetic £485,000

2 Lane Synthetic (with 4 lane home) £225,000

6 Lane Hard Porous Waterbound surface £105,000

8 Lane Hard Porous Waterbound surface £125,000

plus £9,000 per floodlighting column

all-weather (artificial turf) pitches £57 per sq m plus £9000 per floodlighting column.

Tarmacadam playing surface (dedicated sports use - not playgrounds) £28 per sq m.

Crushed stone or “Redgra” playing surface £20.00 per sq m

These costs include professional fees and any external costs which are part of these facilities.

It will be appropriate to consider allowances for obsolescence in respect of some of these features, although no allowance will normally be appropriate in respect of Tarmac, crushed stone, or “Redgra” surfaces. Judgement must be made having regard to their condition. For other features mentioned above, the age related scale set out in Appendix 2, paragraph (a) should be adopted. The scale provides for a maximum 25% allowance but this may be exceeded for swimming pools over 30 years old which have not been refurbished during that period.

Table 1C

The age related scale set out in Table 1A incorporates all appropriate allowances for obsolescence in buildings. An allowance of 28.6% should be made to the costs of Sports Halls without changing facilities.

For other sports facilities in table 1B (excluding tennis courts, Tarmacadam, crushed stone or Redgra surfaces), the following scale is intended to provide a degree of uniformity of allowance. These allowances may be exceeded in the case of swimming pools over 30 years old which have not been refurbished during that period.

Year of completion % allowance Year of completion % allowance
2010 0 1995 10
2009 0.5 1994 11
2008 1 1993 12
2007 1.5 1992 13
2006 2 1991 14
2005 2.5 1990 15
2004 3 1989 16
2003 3.5 1988 17
2002 4 1987 18
2001 4.5 1986 19
2000 5 1985 20
1999 6 1984 21
1998 7 1983 22
1997 8 1982 23
1996 9 1981 1980 & before 24 25

3. Location Factors

The costs in Tables 1A and 1B, the costs for category 3 buildings in para 1.2.2 above, and the costs for category 5 buildings in Appendix 1 are all subject to locational adjustment by application of the factors shown in Table 1D below:

TABLE 1D

Costs should be locationally adjusted in accordance with the R2010 Cost Guide recommendations.

4. Allowances

4.1 Obsolescence and build quality

An allowance for obsolescence may be appropriate for other sports features (see those listed in Table 1B in paragraph 2 above) Obsolescence allowances may be appropriate for Category 5 buildings (see Appendix 1).

4.2 Multi-storey Buildings

The following allowances should be made to the whole of individual buildings with the following number of storeys. To this end, each principal building should be considered separately:

3 storeys 2.5%

4 storeys 10%

5 to 7 storeys 17.5%

8 storeys or more 22.5% for 8th floor and above, 17.5% for lower floors.

These allowances are intended to reflected the operational difficulties of housing a college in a multi-storey building. In particular, they reflect the problems of pupils moving between different storeys. Where the lower floors of a building are larger than the upper floors, the caseworker will need to make a judgement as to the extent to which the extended parts of the lower floors should also benefit from the multi-storey allowance. This will depend on the use of the extension in the context of the use of the building. Where the use in the extension is related to the use in the building then it will be appropriate to apply the allowance to the extended part.

4.3 Overcapacity

Overcapacity allowance is quantified as a “Stage 2” allowance in the Local Authority Schools Practice Note. This method of quantifying overcapacity applies exclusively to such schools and cannot be applied to Colleges of Further Education. An allowance for overcapacity at a College of Further Education may be appropriate, but only if overcapacity can be properly demonstrated.

5. Land Value

Land within the hereditament is to be valued in two categories.

a. developed land consisting of the footprint of all buildings, associated landscaped areas, roadways, car parks and hardstandings, paths, hard sports surfaces and open air swimming pools.. It will normally consist of the whole site of the college, less playing fields.

The value of this category of land will be taken as a percentage of total aggregate adjusted replacement cost, net of any allowances made in accordance with para 4 above. The percentages are set out in Table 2.

b. Undeveloped land will consist of the area of playing fields together with any associated landscaping, but excluding the footprint of any associated buildings and specialised sports surfaces eg all-weather surfaces, tennis courts and open-air pools. Areas which are of no practical use (eg shelter belts and steeply sloping banks) should be ignored.

Advice on undeveloped land value is provided in Table 2.

Table 2

Site Values

A: Developed Land

The following percentages should be added to adjusted costs of all buildings and special external features, as representing developed land value:

Location Urban Rural
Inner London 25% N/A
Outer London 20% 15%
M25 Belt 17.5% 10%
Remainder of South East 11.25% 6.25%
Remainder of England & Wales 9% 5%

For the purposes of the above table:

a) Inner London should be taken to include the London Boroughs of Hammersmith & Fulham, Camden, Islington, Hackney, Tower Hamlets, Greenwich, Lewisham, Lambeth, Southwark, Wandsworth, the Royal Borough of Kensington & Chelsea and the Cities of London and of Westminster

b) Outer London should be taken to be the remaining London Boroughs

C) The M25 Belt should be taken to be the whole county of Surrey, plus Windsor & Maidenhead, Slough, Wokingham, Bracknell Forest, South Bucks, Chiltern, Reading, Oxford (City), Cambridge (City), Dacorum, Three Rivers, Watford, St Alban’s , Hertsmere, Welwyn/Hatfield , E Herts, Broxbourne, Epping Forest, Brentwood, and Sevenoaks

D) The Rest of South East consists of those parts of the counties of Kent, East Sussex, West Sussex, Hants (exc Isle of Wight), Berks, Bucks, Oxon, Herts, Beds, and Essex,( to the extent that they exclude the BAs listed as in the M25 belt), plus Bournemouth, Poole and Christchurch

NB (i) It is not intended that there should be abrupt changes in the approach to site values between the above locational groupings, and shading of these percentages may need to be applied close to their boundaries.

(ii) Valuers should use their own discretion in deciding between “urban” and “rural” categories, but it is suggested that the sites of hereditaments situated on the fringe of build-up areas should be designated rural. While shading between the rural and urban percentages is permitted for Colleges sited on the urban fringe, it should only be applied where the developed land within the College hereditament falls within an area where alternative development would not be likely to be permitted.

Other criteria to be used in determining whether to adopt an “urban” or “rural” percentage are:

a) The proximity of public transport

b) Catchment issues, including whether the premises were originally built as a secondary school or a technical college.

Typical examples of rural colleges are:-

a) Llandrillo, Colwyn Bay

b) South Downs, Waterlooville

A typical example of an urban college is:-

St Vincent, Gosport

B: Undeveloped Land

Undeveloped land (the site of playing fields, but excluding the sites of any Category 1, 2 or 3 buildings, open air pools, tennis/squash courts and specialised sports surfaces):

Adopt amenity/sportsfield value - typical range per hectare :

Greater London area zone 2 (Greater London excluding zones 1 and 3) £175,000 per hectare
Greater London area zone 3 (within 4 miles of GLA boundary) £60,000 per hectare.
Within M25, but outside Greater London £50,000 per hectare
North East £25,000 per hectare
Remainder of England and Wales £45,000 per hectare

North East consists of Northumberland, Tyne & Wear, Durham and Cleveland.

6. Decapitalisation:

The adjusted cost, net of allowances, and including land value, is to be decapitalised at the lower prescribed rate.

7. Stage 5 End Allowances:

Any advantages or disadvantages which might affect the value of the occupation of the hereditament as a whole should be reflected at this stage. An adjustment under this heading should not duplicate adjustments made elsewhere, eg. in arriving at the developed site value by adopting a percentage of ARC rather than ERC, recognition has already been made in broad terms of any disadvantage caused by the land being encumbered by older buildings which may be larger than their modern equivalent.

A reduction of decap rate x £281 psm of roof ‘foot print’ should be made to the value of pre 1960 and post 1980 buildings with traditional flat,timber & truss decked, felt covered roofs (decap rate x£140 psm foot print for flat roofs with other coverings).

No allowance should be made for flat roofs of post 2004 buildings unless of traditional flat, timber & truss decked, felt construction.

Allowances may be made for exceptional dispersal, bad layout, piecemeal development, etc. Consideration must be given to the inherent qualities of this property class. It is common for educational institutions to comprise buildings which are physically separate and only in those exceptional cases where this characteristic leads to actual identification of operational disadvantage/expense should any end allowance be considered. In considering these points the presence or effects of any Category (4) (domestic) buildings should not be discounted.

Where the hereditament includes few roads and paths and lacks car parking an end allowance may be appropriate.

Where colleges are located on split sites, no allowance should be made if the decision to operate in this way was made after AVD (unless consequential with physical changes in the locality). Where a split site college was operating as at the AVD, a deduction may be appropriate if the split site causes identifiable operational disadvantage/expense.

The maximum allowance must not exceed 15% for a combination of the worst features, excluding any flat roof allowance.

Appendix 1

Category 5 buildings are Industrial type buildings used as Workshops for Training. The use of this type of building for partial or occasional academic instruction associated with the vocational training should not prevent the building from being considered as Category 5.

An illustrative description of the main characteristics of a modern Category 5 building is:

Light steel frame, 100mm brickwork infill to 1.0m height, profile 6 corrugated sheet cladding above. Translucent sheet glazing. Electric power, water toilets. Central heating. Such buildings are likely to have been built after 1975.

Older workshops may be constructed from different materials. Where it can be established that the modern replacement for older buildings used for this sort of vocational training would fall within the above description then they may be considered Category 5. Otherwise, they will fall within Category 1.

This Appendix should only be used to cost buildings which fall into the above descriptions. It is unlikely that buildings used for or by the Estates or Works Departments of Colleges are Category 5. It is more likely that they will fall into Category 1 and/or 3 and should be valued by reference to the costs as provided in Table 1A of Practice Note 1: 2010.

Post 2010 Cat 5 buildings have evolved and often include more teaching classrooms, with a higher specification than the older Cat 5 buildings. The two uses within such buildings (a) technical training and (b) academic training should be segregated and valued accordingly. The unit costs for pre 2010 Category 5 and post 2010 category 5(a) buildings are set out below, while post 2010 category 5(b) should be costed as category 1 buildings, see table 1A.:

1. Unit Costs

Single Storey Double Storey
£ 585 per sm £ 525 per sm

The above costs should be adjusted to reflect the variations in construction and finish described below:

Additions Deductions
Eaves height in excess of 3m where no suspended ceiling: 2% of cost per 0.5m ht No insulation: 7.5%
Tiled roof: 3% No central heating: 12.5%
Suspended ceiling: 3%
Quarry tiled floors: 5.5%
Terrazzo floors: 9%

2. Location Factor

Costs specified in this Appendix are to be adjusted by the appropriate Location Factor specified in Table 1D.

3. Obsolescence

The age related scale set out below incorporates all appropriate allowances for obsolescence in Category 5 buildings.

Year of completion

allowance

Year of completion % allowance Year of completion % allowance
2010 0 1989 16
2009 0.5 1988 17
2008 1 1987 18
2007 1.5 1986 19
2006 2 1985 20
2005 2.5 1984 21
2004 3 1983 22
2003 3.5 1982 23
2002 4 1981 24
2001 4.5 1980 25
2000 5 1979 26
1999 6 1978 27
1998 7 1977 28
1997 8 1976 29
1996 9 1975 30
1995 10 1974 31
1994 11 1973 32
1993 12 1972 33
1992 13 1971 34
1991 14 1970 35
1990 15 1969 36
1968 37
1967 38
1966 39
1965 40
1964 41
1963 42
1962 43
1961 44
1960 45
pre 1960 45-50

Practice note 1: 2005

1. Co-ordination Arrangements

This Class is split between Groups and SRUs. Responsibility for ensuring effective co-ordination lies with SRUs. For further information see Rating Manual - section 6 part 1: Practice Note 1: 2005).

The R 2005 Special Category Code 065 should be used. As a split Class the appropriate suffix letter should be either G or S.

2. Approach to the Valuation

2.1 General

This note deals with the valuation of Colleges of Further Education.

2.2 Basis of Measurement

Cost information is mainly derived from analysis to Gross Internal Area (GIA) as defined in the RICS/ISVA Code of Measuring Practice. Referencing details should therefore be compatible and measurements taken in accordance with the Code.

3. Method of Valuation

The approach to the application of the Contractor’s Basis to Colleges of Further Education is reproduced as Practice Note 2. This does not exclude the possibility that rental/comparative evidence should be used. In deciding whether comparison should be made with non-educational property, regard should be had both to the existing physical state of the hereditament, and to its mode and category of occupation. Comparison may only be made between hereditaments in the same category of occupation, except where specific evidence indicates that hereditaments in different modes/categories attract similar rental levels. Instances where there is a practice by the College, or by other Colleges in the area, of renting or purchasing comparable office accommodation at full office values would for example, provide such evidence. The planning status of a particular use is not necessarily indicative of mode or category of occupation for rating purposes, but where general office use is unlikely to be permitted, a hereditament used as university offices should not be valued on office tone.

Practice note 2: 2005: Appendix 1: Revaluation 2005: Application of the contractor’s basis to colleges of further education: Category 5 buildings (training workshops)

Category 5 buildings are Industrial type buildings used as Workshops for Training. The use of this type of building for partial or occasional academic instruction associated with the vocational training should not prevent the building from being considered as Category 5.

An illustrative description of the main characteristics of a modern Category 5 building is:

Light steel frame, 100mm brickwork infill to 1.0m height, profile 6 corrugated sheet cladding above. Translucent sheet glazing. Electric power, water toilets. Central heating. Such buildings are likely to have been built after 1975.

Older workshops may be constructed from different materials. Where it can be established that the modern replacement for older buildings used for this sort of vocational training would fall within the above description then they may be considered Category 5. Otherwise, they will fall within Category 1.

This Appendix should only be used to cost buildings which fall into the above descriptions. It is unlikely that buildings used for or by the Estates or Works Departments of Colleges are Category 5. It is more likely that they will fall into Category 1 and/or 3 and should be valued by reference to the costs as provided in Table 1A of Practice Note 2: 2005.

The unit costs for Category 5 buildings are set out below.

  1. Unit Costs
Single Storey Double Storey
£ 458 per sm £ 410 per sm

The above costs should be adjusted to reflect the variations in construction and finish described below:

Additions Deductions
Eaves height in excess of 3m where no suspended ceiling: 5% of cost per 0.5m ht No insulation: 7.5%
Pitched roof/tile covered: 3% No central heating: 12.5%
Suspended ceiling: 3%
Quarry tiled floors: 3%
Terrazzo floors: 10%

2. Location Factor

Costs specified in this Appendix are to be adjusted by the appropriate Location Factor specified in Table 1D.

3. Obsolescence

The age related scale set out below incorporates all appropriate allowances for obsolescence in Category 5 buildings.

Year of completion % allowance Year of completion % allowance
2005 0 1984 16
2004 0.5 1983 17
2003 1 1982 18
2002 1.5 1981 19
2001 2 1980 20
2000 2.5 1979 21
1999 3 1978 22
1998 3.5 1977 23
1997 4 1976 24
1996 4.5 1975 25
1995 5 1974 26
1994 6 1973 27
1993 7 1972 28
1992 8 1971 29
1991 9 1970 30
1990 10 1969 31
1989 11 1968 32
1988 12 1967 33
1987 13 1966 34
1986 14 1965 35
1985 15 1964 36
1963 37
1962 38
1961 39
1960 40
1959 41
1958 42
1957 43
1956 44
1955 45
pre 1955 45-50

Practice note 2: 2005: Revaluation 2005: The Valuation Basis for rating of colleges of further education

1. Building Categories and Costs

1.1 Descriptions

Buildings occupied by Colleges of Further Education will fall into one of the five categories for valuation purposes:

Category (1) Main college buildings

Category (2) Sports buildings

Category (3) Temporary buildings

Category (4) Living accommodation.

Category (5) Training workshops.

Category (1) Buildings: Main college buildings, whether of traditional or system build construction, intended for permanent use.

Broadly these will comprise the following;

class space and other teaching areas

assembly halls, dining halls

administrative offices

staff rooms

libraries

kitchens

music rooms

sports halls in which are structurally an integral part of main college buildings

stores which are structurally integral to the main college buildings.

Category (2) Sports buildings

i. Sports Halls (Basic and Superior)

All sports halls, together with standard ancillaries. Standard ancillaries include:

WCs, changing rooms, ablutions, viewing gallery and fitness room.

The cost level given in Table 1A is appropriate for all Category 2 Sports Halls.

ii. Indoor Swimming Pools.

Other specialised sporting facilities not contained in buildings (e.g. tennis courts, open air swimming pools, athletics tracks) are costed as special external works, see Table 1B.

Category (3) Temporary Structures

This category includes temporary buildings, and older hutted accommodation which has a limited life and which has not been brought up to the standard of Category (1) buildings. Buildings within this category should normally be used to provide overspill classroom accommodation, intended to have a relatively short use, and be of inferior construction/specification to those in Category 1. Typically, Category 3 buildings will be portable structures on pier foundations. Although “Horsa” and other sectional concrete constructions of similar standard are neither temporary nor easily portable, they should nevertheless be included in this Category unless they have been substantially improved internally and externally and have been brought up to the standards of Category 1 buildings. This category should also include stores, which are not a structurally integral part of the main college building.

The costs for all Category 1, 2 and 3 buildings are inclusive of fees and external works. They are subject to the locational adjustment factors set out in Table 1D.

Category (4) Living Accommodation

Generally Category (4) buildings will be caretaker’s houses. A few Colleges may provide accommodation for students; where a hereditament is occupied partly for non-domestic and partly for domestic purposes, it will be regarded as composite. When dealing with such hereditaments, it should not be assumed that any domestic accommodation is absent, but that it forms the subject of a separate and contemporaneous tenancy held by the same occupier of the remainder of the College hereditament. Account should be taken of the presence or absence of such accommodation to the extent that the value of the non-domestic part is affected.

Category (5) Training Workshops

See Appendix 1 for guidance on the identification and valuation of Category 5 buildings.

1.2 Building Costs

1.2.1 The cost guidance to be adopted for Categories 1 and 2 buildings is set out in Table 1A below. The costs specified are inclusive of external works (other than those separately costed; see para 2 below), and professional fees. The costs in Table 1A are subject to adjustment for location, by reference to the location factors set out in Table 1D.

COLLEGES OF FURTHER EDUCATION - R2005 - BASIS OF VALUATION

COMBINED OBSOLESCENCE ALLOWANCE & BUILD QUALITY ALLOWANCE

TABLE 1A

Date Adjusted Cost/Sq m Category 1 Adjusted Cost/Sq m Category 2
Sports Hall Indoor Pool
Pre 1956 £502 £368 £721
1956 £495 £364 £712
1957 £490 £359 £704
1958 £458 £337 £659
1959 £472 £346 £678
1960 £472 £347 £679
1961 £473 £347 £680
1962 £473 £347 £680
1963 £474 £348 £681
1964 £474 £348 £682
1965 £475 £349 £683
1966 £475 £349 £683
1967 £476 £349 £684
1968 £470 £345 £685
1969 £470 £345 £686
1970 £471 £345 £677
1971 £471 £346 £678
1972 £472 £346 £678
1973 £479 £351 £688
1974 £513 £376 £737
1975 £550 £404 £791
1976 £571 £419 £821
1977 £590 £432 £848
1978 £608 £447 £873
1979 £655 £481 £942
1980 £703 £516 £1,010
1981 £750 £550 £1,077
1982 £750 £550 £1,078
1983 £798 £585 £1,146
1984 £799 £585 £1,147
1985 £799 £586 £1,148
1986 £800 £586 £1,148
1987 £800 £586 £1,149
1988 £847 £622 £1,218
1989 £885 £650 £1,273
1990 £896 £657 £1,287
1991 £905 £664 £1,301
1992 £916 £672 £1,316
1993 £925 £679 £1,330
1994 £936 £686 £1,344
1995 £945 £694 £1,358
1996 £950 £698 £1,366
1997 £955 £701 £1,373
1998 £960 £705 £1,380
1999 £965 £708 £1,387
2000 £970 £712 £1,394
2001 £975 £715 £1,401
2002 £980 £719 £1,409
2003 £1,035 £723 £1,416
2004 £1,040 £726 £1,423
2005 £1,045 £730 £1,430

In the case of indoor swimming pools the above costs may be increased by up to 15% for facilities of better specification.

The date of any building shall be taken to be 12 months prior to its first use. Where a building has been substantially altered at a later date, its date for the purpose of these tables should be adopted as being representative of the building as a whole.

1.2.2 For Category 3 Buildings the following costs should be applied (subject to the location factors in Table 1D), without further distinction as to age:

Adjusted £/m2 Category 3 Adjusted £/ma2 Category 3
Date Temp, no WC Temp, with WC
Pre 1995 260 304
1995 372 437
1999 372 437
2000 425 499
2002 425 499
2003 448 523
Post 2003 448 523

Temporary buildings fitted out as laboratories with additional services may be costed at a higher rate at valuers’ discretion.

1.2.3 For Category 5 Buildings see Appendix 1.

2. Costs of Special External Features

All external works are reflected in the costings set out in Table 1A, except for:

open-air or plastic-covered swimming pools

tennis courts

minor buildings used for specific sports

athletics tracks

other specialised sports surfaces (but not those regularly used as playgrounds other than for organised sport).

The costs, including professional fees, appropriate for these features are set out in Table 1B and are subject to the location factors in Table 1D.

TABLE 1B

open air swimming pool (“in ground”) £660 per sq m water surface area;

open air swimming pool (prefabricated) £450 per sq m water surface area;

insulated corrugated plastic roofing to open air pools £280 per sq m GIA;

squash courts £515 to £765 per sq m;

tennis courts (grass or hard) £13 500 per court;

athletics tracks : 6 Lane Synthetic £347,500

8 Lane Synthetic £410,000

2 Lane Synthetic (with 4 lane home) £197,000

6 Lane Hard Porous Waterbound surface £90,000

8 Lane Hard Porous Waterbound surface £107,000

plus £7,500 per floodlighting column

all-weather (artificial turf) pitches £50 per sq m plus £7 500 per floodlighting column.

Tarmacadam playing surface (dedicated sports use - not playgrounds) £19.50 per sq m.

Crushed stone or “Redgra” playing surface £16.00 per sq m

These costs include professional fees and any external costs, which are part of these facilities.

It will be appropriate to consider allowances for obsolescence in respect of some of these features, although no allowance will normally be appropriate in respect of Tarmac, crushed stone, or “Redgra” surfaces. Judgement must be made having regard to their condition. For other features mentioned above, the age related scale set out in Appendix 2, paragraph (a) should be adopted. The scale provides for a maximum 25% allowance but this may be exceeded for swimming pools over 30 years old which have not been refurbished during that period.

Table 1C

The age related scale set out in Table 1A incorporates all appropriate allowances for obsolescence in buildings.

For other sports facilities in table 1B (excluding tennis courts, Tarmacadam, crushed stone or Redgra surfaces), the following scale is intended to provide a degree of uniformity of allowance. These allowances may be exceeded in the case of swimming pools over 30 years old which have not been refurbished during that period.

Year of completion % allowance Year of completion % allowance
2005 0 1989 11
2004 0.5 1988 12
2003 1 1987 13
2002 1.5 1986 14
2001 2 1985 15
2000 2.5 1984 16
1999 3 1983 17
1998 3.5 1982 18
1997 4 1981 19
1996 4.5 1980 20
1995 5 1979 21
1994 6 1978 22
1993 7 1977 23
1992 8 1976 24
1991 9 pre 1975 25

3. Location Factors

The costs in Tables 1A and 1B, the costs for category 3 buildings in para 1.2.2 above, and the costs for category 5 buildings in Appendix 1 are all subject to locational adjustment by application of the factors shown in Table 1D below:

TABLE 1D

NORTHERN REGION

a
Cleveland 0.91
Cumbria 0.95
Durham 0.91
Northumberland 0.94
Tyne & Wear 0.91

YORKSHIRE AND HUMBERSIDE REGION

Humberside 0.90
North Yorkshire 0.91
South Yorkshire 0.90
West Yorkshire 0.88

EAST MIDLANDS REGION

Derbyshire 0.93
Leicestershire 0.93
Lincolnshire 0.93
Northamptonshire 0.98
Nottinghamshire 0.92

EAST ANGLIA REGION

a
Cambridgeshire 1.04
Norfolk 0.97
Suffolk 1.01

SOUTH EAST REGION (EXCLUDING LONDON)

Bedfordshire 1.08
Essex 1.08
Hertfordshire 1.13
Kent 1.12
Surrey 1.16
East Sussex 1.12
West Sussex 1.10
Berkshire 1.10
Buckinghamshire 1.09
Hampshire 1.06
Isle of Wight 1.07
Oxfordshire 1.05

GREATER LONDON

Barking & Dagenham 1.13
Barnet 1.19
Bexley 1.20
Brent 1.21
Bromley 1.16
Camden 1.32
City of London 1.26
City of Westminster 1.30
Croydon 1.20
Ealing 1.20
Enfield 1.14
Greenwich 1.20
Hackney 1.27
Hammersmith & Fulham 1.27
Haringey 1.22
Harrow 1.16
Havering 1.07
Hillingdon 1.15
Hounslow 1.15
Islington 1.24
Kensington & Chelsea 1.35
Kingston Upon Thames 1.24
Lambeth 1.26
Lewisham 1.17
Merton 1.21
Newham 1.13
Redbridge 1.12
Richmond Upon Thames 1.20
Southwark 1.30
Sutton 1.16
Tower Hamlets 1.23
Waltham Forest 1.19
Wandsworth 1.25

SOUTH WESTERN REGION

Avon 0.96
Cornwall 0.93
Devon 0.94
Dorset 0.97
Gloucestershire 0.96
Somerset 0.94
Wiltshire 0.96

WEST MIDLANDS REGION

a
Hereford & Worcester 0.95
Shropshire 0.94
Staffordshire 0.93
Warwickshire 0.98
West Midlands 0.96

NORTH WEST REGION

Cheshire 0.94
Greater Manchester 0.95
Lancashire 0.95
Merseyside 0.96

WALES

Clywd 0.90
Dyfed 0.95
Gwent 0.95
Gwynedd 0.91
Mid Glamorgan 0.95
Powys 0.92
South Glamorgan 0.96
West Glamorgan 0.93

4. Allowances

4.1 Obsolescence and build quality

An allowance for obsolescence may be appropriate for other sports features (see those listed in Table 1B in paragraph 2 above) Obsolescence allowances may be appropriate for Category 5 buildings (see Appendix 1).

4.2 Multi-storey Buildings

The following allowances should be made to the whole of individual buildings with the following number of storeys. To this end, each principal building should be considered separately:

3 storeys 2.5%

4 storeys 10%

5 to 7 storeys 17.5%

8 storeys or more 22.5% for 8th floor and above, 17.5% for lower floors.

4.3 Overcapacity

Overcapacity allowance is quantified as a “Stage 2” allowance in the Local Authority Schools Practice Note. This method of quantifying overcapacity applies exclusively to such schools and cannot be applied to Colleges of Further Education. An allowance for overcapacity at a College of Further Education may be appropriate, but only if overcapacity can be properly demonstrated.

5. Land Value

Land within the hereditament is to be valued in two categories.

a. developed land consisting of the footprint of all buildings, associated landscaped areas, roadways, car parks and hardstandings, paths, hard sports surfaces and open air swimming pools.. It will normally consist of the whole site of the college, less playing fields.

The value of this category of land will be taken as a percentage of total aggregate adjusted replacement cost, net of any allowances made in accordance with para 4 above. The percentages are set out in Table 2.

b. Undeveloped land will consist of the area of playing fields together with any associated landscaping, but excluding the footprint of any associated buildings and specialised sports surfaces eg all-weather surfaces, tennis courts and open-air pools. Areas which are of no practical use (eg shelter belts and steeply sloping banks) should be ignored.

Advice on undeveloped land value is provided in Table 2.

Table 2

Site Values

A: Developed Land

The following percentages should be added to adjusted costs of all buildings and special external features, as representing developed land value:

Urban <Rural
Central London
(EC and WC, W1, W2, W11, W8
SW1, SW3, SW5, SW7 and SW10,
postal districts) 25 N/A
Remainder of London, and Heathrow - M25 belt 22.5 13
The "Heathrow - M25 belt" is for this purpose defined
as the following Billing Authority areas:
Hertfordshire: Hertsmere, St Albans, Three Rivers,
Watford, Dacorum
Buckinghamshire: Chiltern, South Bucks, Wycombe
Berkshire: Slough, Windsor and Maidenhead,
Bracknell, Wokingham, Reading
Surrey: Surrey Heath, Runnymede,
Spellthorne, Elmbridge, Woking,
Guildford, Waverley
Oxfordshire: Oxford
Remainder of South East England: defined as the following 14.25 8
counties excluding the Billing Authority areas forming part of
the "Heathrow - M25 belt" and excluding portions of other
Billing Authority areas which lie within the M25:
Bedfordshire, Buckinghamshire, Berkshire, Oxfordshire,
Hertfordshire, Essex, Kent, East and West Sussex, Surrey,
Hampshire, and the Bournemouth area of Dorset.
For the avoidance of doubt the Isle of Wight should be treated
as outside "South East England" for the purpose of this Practice Note.
Remainder of England and Wales 10 5

NB (i) It is not intended that there should be abrupt changes in the approach to site values between the above locational groupings, and shading of these percentages may need to be applied close to their boundaries.

(ii) Valuers should use their own discretion in deciding between “urban” and “rural” categories, but it is suggested that the sites of hereditaments situated on the fringe of build-up areas should be designated rural. While shading between the rural and urban percentages is permitted for Colleges sited on the urban fringe, it should only be applied where the developed land within the College hereditament falls within an area where alternative development would not be likely to be permitted.

Other criteria to be used in determining whether to adopt an “urban” or “rural” percentage are:

a)The proximity of public transport

b) Catchment issues, including whether the premises were originally built as a secondary school or a technical college.

Typical examples of rural colleges are:-

a) Llandrillo, Colwyn Bay

b) South Downs, Waterlooville

A typical example of an urban college is:-

St Vincent, Gosport

B: Undeveloped Land

Undeveloped land (the site of playing fields, but excluding the sites of any Category 1, 2 or 3 buildings, open air pools, tennis/squash courts and specialised sports surfaces):

Adopt amenity/sportsfield value - typical range £10,000 to £30,000 per hectare.

6. Decapitalisation

The adjusted cost, net of allowances, and including land value, is to be decapitalised at the lower prescribed rate.

7. Stage 5 End Allowances

Any advantages or disadvantages which might affect the value of the occupation of the hereditament as a whole should be reflected at this stage. An adjustment under this heading should not duplicate adjustments made elsewhere, eg. in arriving at the developed site value by adopting a percentage of ARC rather than ERC, recognition has already been made in broad terms of any disadvantage caused by the land being encumbered by older buildings which may be larger than their modern equivalent.

Where pre-1960 or post-1980 Category 1 buildings are identified, the RV may be reduced by a maximum of £7.49 psm footprint area for felted flat roofs or £3.76 psm footprint area for other flat roof coverings.

Allowances may be made for exceptional dispersal, bad layout, piecemeal development, etc. Consideration must be given to the inherent qualities of this property class. It is common for educational institutions to comprise buildings which are physically separate and only in those exceptional cases where this characteristic leads to actual identification of operational disadvantage/expense should any end allowance be considered. In considering these points the presence or effects of any Category (4) (domestic) buildings should not be discounted.

Where the hereditament includes few roads and paths and lacks car parking an end allowance may be appropriate.

Where colleges are located on split sites, no allowance should be made if the decision to operate in this way was made after AVD (unless consequential with physical changes in the locality). Where a split site college was operating as at the AVD, a deduction may be appropriate if the split site causes identifiable operational disadvantage/expense.

The maximum allowance must not exceed 15% for a combination of the worst features.