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

Section 590: local authority and other maintained schools including state funded academies (but not free schools)

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

1. Co-ordination

For details of the co-ordination arrangements for this class see the relevant Practice Note.

2. Description

2.1 General

The hereditaments to which this Section refers are schools and colleges within the definition of “educational hereditament” (See [RM5:370])(https://www.gov.uk/guidance/rating-manual-section-6-part-3-valuation-of-all-property-classes/section-370-educational-hereditaments).

2.2 Definition

Schools within the above definition may fall into the following categories according to their funding and management:-

a. Community schools (often formerly described as ”County Schools”), ie those provided and maintained by Local Education Authorities (LEAs) whether County Councils, Metropolitan Boroughs or London Boroughs.

b. Voluntary schools, ie. those provided by other bodies, usually churches, but maintained by Local Education Authorities.

c. Foundation schools where the governing body employ the schools staff and have primary responsibility for admission arrangements. The schools land and buildings are owned by the governing body or by a charitable foundation. Many of these schools were formerly grant maintained schools. A new type of Foundation school will be known as a “Trust school” and will be supported by a charitable trust.

d. Academies are technically independent schools but are operated in close conformity with LEAs and for rating valuation purposes should be treated in the same way as the schools in the above categories.

Nursery, primary, middle, secondary or special schools provided and maintained by local education authorities are County schools.

Any school within categories (a) (b) (c) or (d) can apply to be designated as a specialist school in one of ten specialism’s. Schools can also combine any two specialism’s. These are as follows:

  • Arts (performing, visual or media)

  • Business and Enterprise

  • Engineering

  • Humanities

  • Language

  • Mathematics and Computing

  • Music

  • Science

  • Sports

  • Technology

  • Specialist schools meet full national curriculum requirements, but have a special focus on the chosen specialisms.

2.3 City Technology Colleges

For the avoidance of doubt City Technology Colleges do not fall within the scope of this Section - see RM section 6 part 3:820.

2.4 Age Ranges

The nature of the education system is determined locally and there is therefore a variety of educational facilities available for children of different ages in different Local Education Authority areas. Commonly the various age ranges are catered for in the following order:-

Age of Pupils Type of School

2-5: Nursery 5-12: Primary (sometimes subdivided into infant, first, junior, middle) 8-12 or 9-13/14: Middle 11-16/18: Secondary

It should be noted that Nursery Schools are regarded by statute as providing Primary Education and should be treated as Primary Schools for valuation purposes.

3. Survey Requirements

The standard measurement should be Gross Internal Area (GIA), as defined in The Valuation Office Code of Measuring Practice for Rating Purposes in England and Wales, and all referencing should be carried out in accordance with that basis. 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. The number of registered pupils should be found on each occasion when the school is visited.

4. Basis of Valuation

Maintained schools have been the subject of assessment by Memoranda of Agreement for previous valuation lists. The basis of valuation to be adopted is set out in the relevant Practice Note.

5. Valuation considerations

5.1 Unit of assessment

5.1.1 Where accommodation is so physically separated from the main school buildings, and so used as to constitute a separate hereditament, it should be separately assessed. If the school is the only hypothetical tenant, the value adopted should reflect the limited market. If on the other hand the hereditament as it stands could, if vacant and to let, be assumed to be in more general demand within the same mode or category of occupation, the assessment may be arrived at on the basis of independent evidence.

5.1.2 Contiguous sports facilities which are operated by a different authority or by a management committee with representatives from the school/LEA and the local authority should be separately assessed unless,

a. the school or LEA exercises paramount control over the facilities, or

b. the school is a community school and the sports facilities are operated by the same unitary local authority as the school, as in Trafford MBC v Pollard (VO) (2006). NB this will not apply in the many instances where local authorities have devolved leisure centres to charitable trusts.

In cases where the sports facilities are part of the school hereditament, if they are of the same standard as, and are operated as, a local authority leisure centre, the contribution which they make to the value of the whole hereditament should be the same as if they were separately assessed in accordance with Rating Manual Section 960, except that the decapitalisation rate may be different. In such cases therefore the leisure centre element should NOT be costed as a Category 2 school building.

Practice note 1 2017 : LA schools

1 Market Appraisal

1.1) In 2010 the then Secretary of State for Education cancelled the previous Government’s “Building Schools for the Future”(BSFF) programme replacing it with the “Priority School Building Programme”(PSBP). There was a degree of overlap with some 700 contracts in place under the pre-existing arrangements which were honoured. Under the PSBP funding bids were invited from schools in urgent need of repair/replacement. 587 schools applied, 261 being successful. The first school rebuilt under PSBP was opened in May 2014.

1.2) In a response to the need to cut costs in an era of austerity and to meet an increasing demand for more school places Building Bulletins (BB) 98 and 98 which had informed the design and building of secondary and primary schools under the previous government were replaced with new guidelines under the auspices of the Education Funding Agency (EFA). The new guidelines were embodied within Building Bulletin(BB 103), the last published revision prior to the 1st April 2015 being 4th March 2015.Under BB103The minimum gross area recommended for buildings used to calculate funding for many new or replacement school projects, averaged 15% lower than that recommended in BB98(secondary schools) and around 6% lower than BB99(primary schools).The recommendations being based upon typical curriculum delivery and staffing, and took account of schools’ duty to offer universal infant free school meals from September 2014.

1.3) In 2013 the National Audit Office reported -

“the need for school places has increased in recent years. The Department for Education has increased its capital funding to 2014-15 to over £4.3 billion for new school places.” - There was a 16% increase in the number of four-year-olds starting reception classes between 2006/07 and 2011/12. - There were 5% fewer primary school places available in 2010 than 2004, in response to falling school rolls - 20.4 per cent of primary schools were full or over capacity, at May 2012 - In 2011/12, 6.8 million 4-16-year-olds attended state-funded schools in England, 3.9 million were in primary schools, 2.8 million in secondary schools, and 78,000 in special schools. Around 600,000 children start reception classes in primary school each year”

In 2014 the Department for Education reported

“that there has been an increase in pupil numbers since 2010 to 8.3million. In January 2014 there were 24,347 schools in England, an increase from 24,328 in 2013.”

  • there were 3,827 academies and free schools, up by 1,115 since 2013

1.4) On 1 September 2014, the D of E published statistics showing that over 400 free schools and technical schools have been approved since 2010, amounting to over 200,000 school places. It states that in total there are now more than 4,000 academies in England - almost 20 times as many as there were in May 2010.

2. Changes from the 2010 practice note

2.1) As for the 2010 Rating List the method of valuation to be adopted in assessing this class of property is the contractors basis. However 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 relate to the cost of replacing the actual building as was the approach adopted for the 2010 List.
  • The costs 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
  • The age and obsolescence allowances applied at stage 2 now reflect all of the attributes and disadvantages of the actual hereditament in comparison with the modern substitute.
  • An over capacity allowance has been retained but by reference to the guidelines contained within Building Bulletin 103 rather than the now superseded Building Bulletins 98 and 99. The formula for determining the size of primary and middle schools with 90 pupils or less has also been modified accordingly.

3 .Ratepayer discussions

3.1) No discussions have taken place with Local Education Authorities, the governing bodies of state funded Academies or their representatives.

4. Valuation Scheme

4.1) It is considered that there will not be any reliable rental evidence relating to this class of hereditament and the contractors basis of valuation is to be applied in accordance with Rating Manual section 4 part 3 using the guidance below in relation to each stage of the valuation process.

4.2) The costs shown in this section 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 Class Co-ordination Team (CCT).

4.3) Stage 1

The first stage of the Contractor’s Basis is to establish what it would cost to construct a substitute hereditament of the same size on a cleared site.

Design Size

The actual area of the existing school should already be known. However, it is possible that the actual school may be significantly larger than the maximum design size that has been set down by the Department of Education for the pupil numbers at the school, in which case the calculated overcapacity is disregarded in assessing the size of the modern substitute school.

The first areas that are discounted in this way are any temporary classrooms and only if there is still overcapacity, after this has been taken into account, should any allowance be applied to the main school accommodation – See Appendix A for design size calculations and further guidance.

  • Building Cost

The costs to be applied for the various categories are set down in Appendix B1: which are derived from actual cost evidence of modern schools and cost information published by DfES. The Costs in Appendix B1 are exclusive of external works (Appendix B2) and Fees (Appendix B3) Appendix B4 states the costs to be applied to special external features (specialised sports facilities).

  • Location Adjustment

Where appropriate costs should be adjusted for location by reference to the Location Factors set down in the 2017 Rating Cost Guide

iv) Multi Storey Allowances

The allowances set down in Appendix C should be made to the whole of individual buildings. Each principal building should be considered separately.

The allowances are intended to reflect the operational difficulties of housing a school 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 of the multi-storey element, then it will be appropriate to apply the allowance to the extended part.

These allowances do not apply to schools situated in Central London (as defined in the Land Value Practice Note)

4.4) Stage 2

The Estimated Replacement Cost established at Stage 1 above is converted to Adjusted Replacement Cost by applying an age and obsolescence allowance.

The standard age and obsolescence allowances to be applied to the ERC of the individual blocks of permanent buildings are set out in Rating Manual: section 4 part 3: The Contractor’s Basis of Valuation: R2017 Practice Note: Stage 2 - Age and Obsolescence Allowances.

The age and obsolescence allowances to be applied to swimming pools, sports facilities and temporary buildings are stated in Appendices D1, D2 and D3

Exceptionally the age and obsolescence allowance maybe increased to a maximum of 65%, where a school building which was erected prior to 1980, has not been the subject of any significant works of modernisation or improvement. It is considered there is likely to be relatively few such buildings.

This adjustment takes into account deficiencies in the actual building from an occupational point of view, which is not reflected in the ERC.

Although age related the allowances should be adjusted where a school has been substantially modernised/refurbished in the past 10 years. The figure adopted will depend upon the extent of the modernisation carried out and is a matter for caseworker judgement.

4.5) Stage 3

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

  • Developed Land

Will consist of the footprint of all buildings, associated landscaped areas, roadways, car parks and hard standings, paths, playgrounds, hard sports surfaces and open air swimming pools. It will normally consist of the whole site of the school less playing fields.

  • The value of this category of land will be taken as a percentage of total adjusted replacement costs. The percentages are set out in Appendix E.

  • Caseworkers 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 built-up areas with populations not exceeding 3,000 should be designated rural. While shading between the rural and urban percentages is permitted for schools sited on the urban fringe, it should only be applied where the developed land within the school hereditament falls within an area where it is likely no alternative development would be permitted.

  • Undeveloped Land

Will consist of the area of playing fields together with any minor 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.

The value of undeveloped land is to taken as the appropriate level for amenity land as stated in the 2017 Land Value Practice Note

4.6) D Stage 4

The ARC of the buildings is aggregated with the land value, and then de-capitalised to an annual equivalent at the statutory rate applicable to educational hereditaments in respect of the 2017 Rating List 4.7) E Stage 5

The main function of this stage is for the caseworker to be satisfied that the figure produced represents the rental value of the hereditament on the statutory hypothesis.

This stage has been referred to as the “stand back and look” stage, but it is important to recall that a number of adjustments and allowances may already have been made at earlier stages. Therefore the caseworker must be careful to ensure that adjustments at this stage are only made for matters which have not already been considered.

The caseworker should review the preceding valuation stages and reflect upon whether any further adjustments are necessary. This allows for adjustments which cannot properly be made at the previous stages to be considered at Stage 5.

The value has already been adjusted prior to Stage 5 for (i) Physical and Functional Obsolescence, (ii) Age Related Build Quality, (iii) Location Factor & (iv) Multi-Storey Allowance.

A list of factors which may be considered at Stage 5 has been produced with indicative maximum allowances for the worst case scenarios and is reproduced as Table F.

The list is not exhaustive, and as already stated any physical attribute of the hereditament that may affect the rent agreed between the hypothetical landlord and tenant should be considered here, if not already taken into account elsewhere in the valuation.

The correct measure of any adjustment is the effect on the rent that would be agreed between the hypothetical landlord and tenant, and not any estimation of cost. On this basis, it is unlikely that in all but the most exceptional circumstances, the total adjustments for Stage 5 Table E will exceed 15%.

Where disputes on the appropriate level of allowance are unresolved these should be referred to the National Specialist Unit for advice.

Specific allowances are to be given in respect of the following

  • Flat Roof Allowance

Category 1 and 2 buildings with a flat roof are to receive an end allowance of up to 15% as follows -

  1. a) £80 per m2 ARC of the footprint of the flat roof for buildings constructed up to and including 2004.

    b) £60 per m2 ARC of the footprint of the flat roof for buildings constructed after 2004.

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

  3. What is flat as opposed to a pitched roof will generally be self evident. Flat roofing allowances will automatically apply here to all types of flat roof. In instances where an allowance is sought for pitched roofing caseworkers should seek advice from the National Specialist Unit before proceeding.

  • Oil, LPG or Electric Central Heating

Where a school has oil, LPG fired central heating or electrical heating, an end allowance of 5% shall be applied to the valuation.

  • Application and Caps on Allowances

Where only Table F allowances are applicable a cap of 15% will apply.

Where only Flat Roof allowances are applicable a cap of 15% will apply.

However, if either the Table E allowances or the Flat Roof allowances reach 15% the presence of non-reflected flat roofing or Table E allowance factors will extend the cumulative cap to 20%.

As was accepted in the 2005 and 2010 practice notes, it is recognised that basic caps on allowances can be exceeded in exceptional circumstances, regardless of whether the above “top up” position is reached.

Caseworkers should note that it is intended that qualifying heating allowances should stand outside of the above capping arrangements. It follows that in instances where the cap has been reached, either at 15% or at 20%, a further 5% allowance would apply if a heating allowance is warranted.

Repair Assumptions

The property is deemed to be in a reasonable state of repair, in line with the rating hypothesis. Therefore the costs should not be varied for the state of repair of the actual hereditament. However, when the controlling body has, on or before the material date, resolved to demolish a school rather than repair (solely on the grounds of condition) then this may be taken as an indication that the expenditure for repair would be considered uneconomic by the landlord. Such repairs cannot be assumed to have been made to the hereditament, and the standard age-based scale deductions will not necessarily be adequate. In such cases the caseworker must arrive at his own estimation of the appropriate allowance. In such cases, while the school is in use, Category 1 buildings can be treated as temporary (Category 3) structures.

5. The Application of the Design Guidelines

5.1) The design guidelines are set out in Appendix A. The notes below give further guidance in relation to less straight forward matters which maybe encountered-

5.2) The design criteria for all schools excludes wet leisure. Accordingly, for any schools with indoor swimming pools, the design size should be increased by the actual area of the wet leisure facility, subject in the case of facilities opened before 1 April 2000, to a maximum size as stated in the Rating Manual Section 960 (LA Sports and Leisure Centres) Appendix 2 (Aide Memoir for Inspection).

5.3) Where dry sports hall (or, in the case of primary/middle schools) multi-purpose halls are also used by the community the Design Size of the school should be revised as indicated:

  • In the case of secondary schools, if the hall(s) exceeds 594 sq. m the design size of the school should be found by deducting a total of 594m2 sq. m from the design size and then adding the actual size of the hall.
  • In the case of all middle schools which share halls, if the hall(s) exceed 250sqm then the design size should be found by deducting a total of 250 sqm and then adding the actual area of the hall(s)
  • In the case of primary schools with numbers on roll (NOR) below 420 pupils which share halls, then if the hall(s) exceed 120sqm in the case of infant schools or 140sqm in the case of junior schools the design size should be found by deducting a total of 120sqm /140sqm and then adding the actual area of the hall(s). Where the numbers on roll exceed 420 deduct 20 sqm +0.3sqm per pupil and add back the area of the hall,
  • Supplementary areas within the school which are not used by pupils during the school day will fall to be assessed but are to be excluded from design size calculation/over capacity.

Examples are as follows Crèches, Nursery provision for 0 to 3 year olds and child care provisions for out of school hours Adult Learning and Skills and centres for local authority learning such as staff training Specially resourced facilities such as a designated SEN or disabilities unit and pupil referral units Non school facilities such as community library facilities or youth centres Accommodation for local authority designated support services, including peripatetic and support staff. Parent or community room not available to the school Chapel or similar place of worship not available to the school except for that purpose.

6. The Estimated Number of Pupils (ENP)

6.1) The valuation must reflect overcapacity identified as likely to persist from the antecedent valuation date (AVD). To quantify any allowance appropriate for overcapacity, it is necessary to find the estimated number of pupils (ENP) as at the AVD. In doing so regard must be had to the actual registered number of pupils as at April 2015. The best guide to this is provided by nationally collected statistics of pupil numbers for Spring 2015. If this is a reliable indicator of long-term numbers it may be accepted as the ENP. If there is a falling or rising trend the ENP should be reduced or increased from the Spring 2015 actual. In general this variation is unlikely to exceed 20%.

6.2) Details of how to access pupil numbers will be circulated to case workers.

6.3) The Spring 2015 statistics may be affected by some anomaly, which is unlikely to be repeated in subsequent years. In such cases it is necessary to ascertain future trend in registered numbers as discernible at AVD.

a.In primary and nursery schools which have a summer term intake for their lowest forms, the maximum number which the school must accommodate will not be reached until the summer term; where this practice is followed, the January figure will need to be increased by the summer term intake.

b.Whereas at AVD the pattern of education in the locality was about to change from primary/middle/secondary to primary/secondary, or where the changeover ages between these different types of school were about to be altered, the actual registered numbers as at Spring 2015 may not give good guidance as to capacity requirements in individual schools in subsequent years. The Spring 2015 statistics may still be used (if reliable in other respects) unless by the AVD, the Local Education Authority had resolved to change the age pattern. But, if it had so resolved, the caseworker should ascertain/anticipate the registered numbers in the first year of that change.

c.There may have been a physical change in the hereditament or locality post AVD which will affect the numbers the school will have to accommodate, e.g.:

An extension to or partial demolition of the subject school, A new school in the locality, the demolition or enlargement of an existing school in the locality, new residential development in the locality, or clearance in the locality.

6.4) Where a new school has opened and is being filled year on year by successive cohort intake at Year 7/reception then the NOR adopted should be taken to be the number on role at the midpoint between the school opening and the point when it could be potentially full e.g. if a new secondary school were to open on the 1stSeptember 2017 with an annual intake at year 7 of 200 pupils and an eventual capacity of say 1300(5 x 200 +150 x2) then the projected number on role at the midpoint would be 800 (on 1st September 2020.) Where the valuation date falls at some point during the filling process then the NOR adopted should be ascertained in the same manner by taking the NOR at the midpoint between the valuation date and the date when the school will be potentially full. The assessment must be reviewed when the final year’s cohort is taken on. 6.5) When schools have been closed on or before AVD without any prospect that they will reopen, a NIL assessment may be appropriate. Subsequent closures may justify a NIL assessment if they are caused by an MCC. But evidence of private demand or demand from Free schools as at AVD, must be taken into account.

7. Overcapacity Allowance

7.1) Where the GIA of the school exceeds design size an allowance of 100% is to be made of the excess area in all cases.

7.2)The reduction should be applied firstly to any accommodation which is shown to be superfluous within the context of the overall operating needs of the school and, any balance remaining spread pro rata to GIA among the Category 1 accommodation. Where overcapacity is applied to a hereditament containing Category 3 classrooms, investigations should be made so as to answer the following test: if the school was compelled to contract, which part(s) would be the first to be given up?

7.3) If the facts at the school provide insufficient direction, the opinion of a person in a position of responsibility (the school head or LEA official if appropriate) should be sought to provide an answer. Overcapacity may sometimes arise in Category 2 buildings, but in most hereditaments no appreciable inaccuracy is likely to result from concentrating the allowance in Categories 3 and 1.

7.4) Appendix A has been compiled ignoring space requirements for community use and further education. The design size of the school should be increased by any Category 1 or 2 areas exclusively used for these purposes. (see section 5 above)

7.5) While Appendix A gives general guidance, it should not be taken to justify an allowance for overcapacity where other evidence suggests that no overcapacity exists. This depends on the facts of particular hereditaments and it may be necessary to form a judgment having regard to the use of Category 3 classrooms and any new-build post AVD.

7.6) There are a variety of reasons why an education authority might undertake post AVD construction or continue occupying Category 3 classrooms and it is not possible to consider every scenario in this memorandum, which must permit a degree of valuation tolerance. However, the following guidance is presented, to indicate whether an overcapacity allowance is warranted:

  • Post AVD construction should not prevent an overcapacity allowance being given where the hereditament would have merited the allowance before the addition of the new floor space. But no overcapacity allowance should be given to the new floor space, except where it is provided to cope with demands expected to arise from an anticipated MCC, which has not yet materialised.

  • As a particular illustration of that exception, an allowance may be appropriate even for new post AVD floor space when new classrooms are erected in anticipation of future demand from a residential development. There may also be a phased occupation of a new school year by year which should also qualify for an overcapacity allowance which is in progress (see section 6 above) or has not yet been occupied in anticipation of another MCC, such as the planned closure of another school.

8. Building Categories

8.1) Category 1 Buildings: Main school 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 and stores in Primary and Middle schools which are structurally an integral part of the main school buildings. Excluded from the valuation:

  • Link walkways if only used for communication and storage.
  • Minor buildings (less than 26 sq.m) provided they are not used as teaching space or toilets.

8.2) Category 2 Sports Buildings

(i) Sports Halls

These include all sports halls (together with standard facilities) in Secondary schools and Primary and Middle schools where they are structurally not an integral part of the main school buildings. Standard ancillaries include WCs, changing rooms, toilets, viewing gallery and fitness room.

The cost level given in Appendix B1 is appropriate for all Category 2 Sports Halls

(ii) Indoor Swimming Pools.

The cost level given in Appendix B1 (wet) is appropriate for all Category 2 Indoor Pools.

Other Specialised Sporting Facilities not contained in buildings (e.g. tennis courts, open air swimming pools, athletics tracks etc) are cost as special external works, see Appendix B2.

Category 3 Temporary Structures This category includes temporary buildings and hutted accommodation which has a temporary life and is not of the same standard as Category 1 buildings. Buildings within this category are normally 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 sectional portable buildings on pier foundations. Although “HORSA” and similar sectional concrete buildings are not easily portable, they were originally intended to be temporary and should be included in Category 3 unless they have been substantially improved both internally and externally, and been brought up to the standards of Category 1 buildings.

This category should also include stores which are not a structurally integrated part of the main school building.

Timber sheds (exceeding 26 sq.m.) and stores should be cost separately,

Canopies –Permanent canopies should be cost separately with the exception of canopies attached to Infant school Category 1 buildings constructed after 1996 as they will have already been accounted for in Appendix B1.

Appendix A

Design Size Guidelines

School Description Base Area GIA Area per Pupil Place Area  per Pupil Place Post 16
All Primary Schools (including 3 and 4 year olds). With 90 pupils and above 400 sqm base area Plus 4.5 sqm per full time pupil  
All Middle Schools with 90 pupils and above. 835 Plus 7.1 sqm per full time pupil  
All primary and middle schools with less than 90 pupils  Up to 40 pupils 94 sqm  41 – 89 pupils Interpolate between space requirements for 40 pupils and 90 pupils Plus 2.8 sqm per full time pupil  
Secondary up to age16  and all-age/ through schools with 750 places or less than 300 11-16 year olds   1,270 sqm base area Plus 7.1sqm per full time pupil key stage 3/4 (age 11-16) and 4.5 sqm per key stage 1/2 &  nursery ( age 3-11) For secondary and all age/ through schools with post 16 pupils(over age 16) Plus 7.85 sqm per pupil over age 16
All age(all through) above 750 places or with more than 300 11 to 16 places 1,670 sqm base Plus 7.1sqm per full time pupil key stage 3/4 (age 11-16) and 4.5 sqm per key stage 1/2 &  nursery ( age 3-11) For secondary and all age/ through schools with post 16 pupils(over age 16) Plus 7.85 sqm per pupil over age 16

Appendix B 1

Building Costs

Building Category (As defined in Section 8) Cost per square metre (£/sqm) GIA Cost Guide Reference  
School Type Primary Middle/  Secondary    
Category 1 1,400 1,400 N/A  
Category 2 (Dry) 1,011 1,011 42AC02  
Category 2 (Wet) 2,089 2,089 STD020  
Category 3(with w/c) 709 709 42AC04  
Category (without w/c) 619 619 42AC05  
5KW Wind Turbine(15m high)   This is a cost per item  

Appendix B 2

The addition for external works

Site Description Percentage  Addition Remarks
Constrained site with no on- site parking or landscaping 5% Fencing assumed
Site with limited staff parking and landscaping 7.5% Fencing assumed
Site with adequate staff parking, some visitor parking and landscaping 10% Fencing assumed
Extensive Site with ample parking and landscaping 15% Fencing assumed

Appendix B 3

The addition for fees

Adjusted Replacement Cost (ARC)  Fee Level Minimum fee
Sums up to £750,000 14%  
£750,000 to £1,500,000 13%    £105,000
£1,500,000to £4,000,000     11.5%    £195,000
£4,000,001 to  £7,500,000     10.5%    £460,000
£7,500,000 to £15,000,000       9.5%    £787,500
Over £15,000,000      9% £1,425,000

Appendix B4

Description Cost Cost Guide Reference
Open Air Swimming Pools    
In ground £1,275/m2 water area 63Z00T
Over ground(pre-fabricated) £1,000/m2 water area 63Z00Y
Insulated corrugated plastic roofing over open air pools £364/m2 63Z00S
Hard Surface Sports Area(tarmacadam) below 6,000m2 Area(tarmacadam) above 6,000m2 (Dedicated for sports-not playgrounds.)   £42/m2                                                                       £30/m2   33U030 33U025
All weather surfaces    
Astroturf £65/m2 STK020
3G playing surface £88/m2 STL020
Water based hockey pitches £106/m2 STM020
Crushed stone or “Redgra” playing surface £38/m2 33U010
Grass surfaces    
Generally £12/m2 33U00G
     
Tennis courts (Hard) Depends on court number and specification. Select from Cost guide (costs include drainage and fencing) 33U30A,F or P and 53U40A,F,K or P
Tennis courts (grass) £30,970 per court. Add for fencing 33U00K. Fencing 33U2K5 or 33U2KA
Squash Courts £1,268/m2 STS033
Running Tracks    
6 lane synthetic £435,087 Per track 63P00A
8 lane synthetic £592,321 Per track 63P00C
6 lane hard porous water bound surface £279,623 Per track 63P00D
6 lane hard porous water bound surface £374,343 Per track 63P00E
2 lane synthetic (with 4 lane home) £190,954 Per track 63P00L
Lighting    
AWP lighting Columns   Depends on specification. Select from Cost Guide   63P10A to 63P20P(tennis), & 63P10A to R (general per column)
Pitch Food lighting, Hockey, Football, Rugby Hockey STJ020, Football STH020, Rugby STI020
Canopies £175-£500 /m2 dependent upon specification and size. N/A
 Infant schools built after 1996 will have at least one canopy incorporated into the design and therefore included in the cost psm and should be DISREGARDED.    

Appendix C

Multi-Floor allowances

No of Storeys Allowance
1 to 2 Nil
3 5%
4 10%
5 to 7 17.5%
8 storeys or more 8th Floor and above 22.5%                                    Below 8th Floor 17.5%

Appendix D1

Age and obsolescence scales

Category 2 Buildings (Swimming Pools)

Swimming Pools (Indoor and Outdoor) are to be given the following allowances:-

The allowance for outdoor pools is capped at 50%

Where an indoor swimming pool is relined and/or the building refurbished the allowance should be reduced to an appropriate level having regard to the level of refurbishment and the original age of the facility/building.

Age Allowance Age Allowance
2017 0.0% 1988 40.0%
2016 0.5% 1987 42.5%
2015 1.0% 1986 45.0%
2014 1.5% 1985 47.5%
2013 2.0% 1984 50.0% (max outdoor pools)
2012 2.5% 1983 52.5%
2011 3.0% 1982 55.0%
2010 3.5% 1981 56.5%
2009 4.0% 1980 58.0%
2008 4.5% 1979 59.5%
2007 5.0% 1978 61.0%
2006 6.0% 1977 62.5%
2005 7.0% 1976 64.0%
2004 8.0% 1975 65.5%
2003 9.0% 1974 67.0%
2002 10.0% 1973 68.5%
2001 12.0% 1972 & before 70%
2000 14.0%    
1999 16.0%    
1998 18.0%    
1997 20.0%    
1996 22.0%    
1995 24.0%    
1994 26.0%    
1993 28.0%    
1992 30.0%    
1991 32.5%    
1990 35.0%    
1989 37.5%    

Appendix D2

Age and obsolescence scales

Category 2 Other Sports Facilities

It will be appropriate to consider allowances for obsolescence in respect of some but not all of the specialised items referred to in Appendix B4

Dry Sports buildings such as gymnasiums are to be treated as category 1 buildings for the purpose of age and obsolescence allowances

No allowance will normally be appropriate in respect of tarmac, crushed stone, or “Redgra” surfaces.

Age Allowance Age Allowance
2017 0.00% 2002 10.00%
2016 0.50% 2001 11.00%
2015 1.00% 2000 12.00%
2014 1.50% 1999 13.00%
2013 2.00% 1998 14.00%
2012 2.50% 1997 15.00%
2011 3.00% 1996 16.00%
2010 3.50% 1995 17.00%
2009 4.00% 1994 18.00%
2008 4.50% 1993 19.00%
2007 5.00% 1992 20.00%
2006 6.00% 1991 21.00%
2005 7.00% 1990 22.00%
2004 8.00% 1989 23.00%
2003 9.00% 1988 24.00%
    Pre 1988 25.00%

Appendix D3

Age And Obsolescence Scales

Category 3 Buildings (Temporary)

Age Allowance Age Allowance
2017 0.00% 2002 10.00%
2016 0.50% 2001 11.00%
2015 1.00% 2000 12.00%
2014 1.50% 1999 13.00%
2013 2.00% 1998 14.00%
2012 2.50% 1997 15.00%
2011 3.00% 1996 16.00%
2010 3.50% 1995 17.00%
2009 4.00% 1994 18.00%
2008 4.50% 1993 19.00%
2007 5.00% 1992 20.00%
2006 6.00% 1991 21.00%
2005 7.00% 1990 22.00%
2004 8.00% 1989 23.00%
2003 9.00% 1988 24.00%
    Pre 1988 25.00%

Appendix E

Developed Land Value

Geographic Location Urban % ARC Rural % ARC
Central London N 90.00 N/A
Central London S 39.00 N/A
GLNW 14.50 N/A
GLSW 44.50 N/A
GLNE 21.50 N/A
GLSE 26.75 N/A
North East 4.50 2.25
North West 9.75 4.87
Yorkshire & Humberside 8.25 4.12
East Midlands 4.50 2.25
West Midlands 8.00 4.00
East of England 15.25 7.62
South East 14.50 7.25
South West 10.25 5.12
North Wales 6.75 3.37
South Wales 8.75 4.37
Cardiff 21.50 10.75

The definitions of the areas referred to above can be found in the 2017 Land Value Practice Note

Appendix F

End allowances with indicative maxima

Adjustment for: Remarks Allowance applied to Maximum Allowance
Insufficient parking &/or poor access DfES BB 103 Part B provides guidance Whole school. All schools. 5%
Dispersal, poor layout, piecemeal development Combined effects Whole school. All schools. 7.50%
Lack of hard surfaced playground DfES BB 103 Annex B gives the minimum area for hard play. Whole school. Primary & Secondary schools. 5%
School split between 2 or more sites Consideration to be given to whether a single assessment is appropriate having regard to the decision of the Supreme Court in Woolway(VO) v Mazars. Refer to NSU for advice as necessary. Part reliant on other site (i.e. part of school that needs to use dining facilities elsewhere) Norm 5%,   up to max of 10%
No Playing Fields Where playing fields are the norm for the locality & type of school 10%. DfES BB 103 Annex B gives minimum area for playing pitches, etc. Whole school. All schools. Up to 10%
Sloping Playing Fields   Undeveloped Land Value Up to 25%
Open Plan Classrooms Problems of noise, etc Relevant area Up to 10%
Asbestos     Each case on own merits
Inequity of Girls v Boys Toilets Published standard 1 toilet per 10 pupils under 5 years & 1 toilet per 20 pupils over 5 years. Whole school. All schools. Up to 2%
Inadequate Kitchen or Dining facilities   Whole school. All schools. Up to 5% (none), Inadequate 2.5%. (but no allowance for absence of dedicated dining room in primary schools)
Inadequate Staff accommodation DfES BB Annex A gives the minimum area. Whole school. All schools. Up to 2%
Inadequate ancillary accommodation DfES BB 102 Annex A gives the minimum area. Whole school. All schools. Up to 1%
Lack of fencing to tennis courts   Relevant area Up to 10%
Inadequate Corridor width   Whole school. All schools. 2%
Inadequate Assembly Halls Only to be applied where whole school assembly is an issue. DfES BB 103 Annex A gives minimum area. Whole school. All schools. 4%
Site prone to flooding     Each case on own merits
Playground only accessible by steps   Whole school. All schools. Up to 2.5%
Complicated emergency evacuation routes   Whole school. All schools. Up to 2%
Classrooms unsuitable for delivery of curriculum i) Primary schools - issue tends to be class specific. Relevant area Up to 10%
Classrooms unsuitable for delivery of curriculum ii) Secondary schools - less classroom specific - layout issue (see above) Whole school. All schools. See layout above

This list is not exhaustive and caseworkers should refer to the Section on Stage 5 Allowances.

Total cumulative allowance for Table E is capped at 15%.

Practice note 2 2017 - Day Nurseries

1. Market Appraisal

The number of child care places increased significantly between 2008 and 2014 as did the number of providers. According to official statistics the number of facilities offering full time day care in the private sector in England increased from 13,800 in 2008 to 17,900 in 2013. The number of primary schools offering both reception and nursery provision grew from 6,700 to 7,600 over the same period. According to figures produced by Ofsted there were some 1,023,404 nursery places in England in September 2013. Over the same period the number of stand- alone maintained nursery schools and children’s centres declined significantly as did the number of registered child minders.

The economic value of the nursery sector was estimated at £4.6billion in 2013 by a leading firm of analysts up from £4.1bilion in 2009

The five largest operators in terms of establishments provide around 42,200 places out of 510 nurseries since 2008 when the top 5 had 476 nurseries and some 36,112 places the increase has been 7.14% increase in nurseries with a corresponding 16.86% increase in places. Schools in the private sector have also continued to expand into the nursery sector often by way of the provision of self-contained units in the grounds of pre-existing prep or pre prep schools.

Demand has been partially fuelled by publically funded child care vouchers which can contribute up to approximately £1,300 per annum. The coalition government was intending to introduce a new tax-free childcare scheme to support working families from autumn 2015, stated to be worth up to £2,000 per child each year and to increase the support available to lower-income families from April 2016, as part of universal credit.

The government abandoned proposals to increase the number of child care places by relaxing the staff to child ratios in June 2013 following a consultation exercise.

In general the rental market in the nursery sector throughout 2014 was perceived in the industry to be relatively buoyant. Specialists in the sector advise that typically tenants were seeking 10 year leases with options to extend at rents in the range £20,000 to £45,000 per annum.

It is understood that current average occupancy rates are around 80%. Occupancy rates in excess of this can impact upon necessary flexibility.

2. Changes from the 2010 practice note

As for 2010 the approach to valuation that will be adopted in assessing the large majority of stand- alone day nursery premises will be the rentals method. However there will be some nursery accommodation provided by Local Authorities for which there will be insufficient rental evidence due to either size or location to form a reliable opinion of value. In those circumstances the property will fall to be assessed using the Contractors basis

  • The costs to be applied at Stage 1 relate to the modern substitute and do not relate to the cost of replacing the actual building as was the approach adopted for the 2010 List.

  • The age and obsolescence allowances applied at stage 2 now reflect all of the attributes and disadvantages of the actual hereditament in comparison with the modern substitute.
  • A formulated over capacity allowance calculated by reference to the guidelines contained within Building Bulletin 103 has been introduced
  • The valuation spreadsheet is now identical to that utilised for LA schools save as to Building costs and the calculation of design size.

3. Ratepayer discussions

No discussions have taken place with representatives of ratepayers in this sector

4. Valuation Method

  A)   Rentals Method

It is anticipated that there will be sufficient rental evidence to value the large majority of day nurseries by reference to the rentals method of valuation. Analysis should be expressed in terms of a £/m2 main space although where the information is available a secondary analysis to provide a rent per child place would be of assistance in the valuation process.

In considering the weight to be placed on the rental evidence and in formulating a valuation scheme regard should be had to the following –

  • Whether the property is purpose built or converted
  • If converted whether the accommodation offers optimum space requirements
  • Favourable locations- proximity to schools or residential areas with favourable demographics etc.
  • Is the toilet, ancillary and staff accommodation adequate
  • Is there adequate car parking either on site or in the immediate vicinity for staff and parents.

Further information relating to the Day Nurseries and Child Care sector generally can be found in the main body of section 590 of the Rating Manual.

Valuation Scheme Relativities

Day nurseries assessed by reference to the rentals method are to be valued using the Rating Support Application (RSA). The relevant scale reference is WMNURSERY1, (Day Nurseries and Play Groups). Owning Site 501.

It is expected that address based matrices will be used in conjunction with the scale referred to above when formulating a valuation scheme for this class.

Class Co-ordination Team (CCT) members are responsible for ensuring rental information is ascertained and subject to formal co-ordination procedures between business units.

 B)     Contractors Basis

Where there is insufficient rental evidence to form an opinion as to value either because the nursery is of a size for which there is no evidence or where the nursery (invariably a LA provided nursery school) is in an area where there is no private sector demand then the application of the contractors basis will be appropriate.

The costs shown in this section 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 Class Co-ordination Team (CCT).

A) Stage 1

The first stage of the Contractor’s Basis is to establish what it would cost to construct a substitute hereditament of the same size on a cleared site.

Design Size

The actual area of the existing nursery school should already be known. However, it is possible that the actual school may be significantly larger than the maximum design size that has been set down by the Department of Education for the pupil numbers at the school, in which case the calculated overcapacity is disregarded in assessing the size of the modern substitute school.

The first areas that are discounted in this way are any temporary classrooms and only if there is still overcapacity, after this has been taken into account, should any allowance be applied to the main school accommodation – See paragraph 5 and Appendix A for design size calculations and further guidance.

  • Building Cost

The costs to be applied for the various categories are set down in Appendix B.

  • Location Adjustment

Where appropriate costs should be adjusted for location by reference to the Location Factors set down in the 2017 Rating Cost Guide

iv) Multi Storey Allowances

The allowances set down in Appendix C should be made to the whole of individual buildings. Each principal building should be considered separately.

The allowances are intended to reflect the operational difficulties of housing a school 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 of the multi-storey element, then it will be appropriate to apply the allowance to the extended part.

These allowances do not apply to schools situated in Central London (as defined in the 2017 Land Value Practice Note)

B) Stage 2

The Estimated Replacement Cost (ERC) established at Stage 1 above is converted to Adjusted Replacement Cost (ARC) by applying an age and obsolescence allowance.

The standard age and obsolescence allowances to be applied to the ERC of the individual blocks of permanent buildings are set out in Rating Manual: section 4 part 3: The Contractor’s Basis of Valuation: R2017 Practice Note: Stage 2 - Age and Obsolescence Allowances.

This adjustment takes into account deficiencies in the actual building from an occupational point of view, which is not reflected in the ERC.

Exceptionally the age and obsolescence allowance maybe increased to a maximum of 65%, where a school building which was erected prior to 1980, has not been the subject of any significant works of modernisation or improvement. It is considered there is likely to be relatively few such buildings.

Although age related the allowances should be adjusted where a school has been substantially modernised/refurbished in the past 10 years. The figure adopted will depend upon the extent of the modernisation carried out and is a matter for caseworker judgement.

The table of allowances in appendix D relates to temporary buildings

C) Stage 3

Land within the hereditament is to be valued in two categories. It is unlikely however that undeveloped land will be encountered with a nursery school.

  • Developed Land

Will consist of the footprint of all buildings, associated landscaped areas, roadways, car parks and hard standings, paths and playgrounds,

It will normally consist of the whole site of the school less playing fields (not normally present).

  • The value of this category of land will be taken as a percentage of total adjusted replacement costs. The percentages are set out in Appendix E(1).

  • Caseworkers 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 with populations not exceeding 3,000 should be designated rural. While shading between the rural and urban percentages is permitted for schools sited on the urban fringe, it should only be applied where the developed land within the school hereditament falls within an area where it is likely no alternative development would be permitted.

  • Undeveloped Land

Will consist of the area of any playing fields. Areas which are of no practical use (e.g. shelter belts and steeply sloping banks) should be ignored.

The value of undeveloped land is to taken as the appropriate level for amenity land as stated in the 2017 Land Value Practice Note

D) Stage 4

The ARC of the buildings is aggregated with the land value, and then de-capitalised to an annual equivalent at the statutory rate applicable to educational hereditaments in respect of the 2017 Rating List

E) Stage 5

The main function of this stage is for the caseworker to be satisfied that the figure produced represents the rental value of the hereditament on the statutory hypothesis.

This stage has been referred to as the “stand back and look” stage, but it is important to recall that a number of adjustments and allowances may already have been made at earlier stages. Therefore the caseworker must be careful to ensure that adjustments at this stage are only made for matters which have not already been considered.

The caseworker should review the preceding valuation stages and reflect upon whether any further adjustments are necessary. This allows for adjustments which cannot properly be made at the previous stages to be considered at Stage 5.

The value has already been adjusted prior to Stage 5 for (i) Physical and Functional Obsolescence, (ii) Age Related Build Quality, (iii) Location Factor & (iv) Multi-Storey Allowance.

Any physical attribute of the hereditament that may affect the rent agreed between the hypothetical landlord and tenant should be considered here, if not already taken into account elsewhere in the valuation.

The correct measure of any adjustment is the effect on the rent that would be agreed between the hypothetical landlord and tenant, and not any estimation of cost. On this basis, it is unlikely that in all but the most exceptional circumstances, the total adjustments for Stage 5 adjustments will exceed 15%.

Where disputes on the appropriate level of allowance are unresolved these should be referred to the National Specialist Unit for advice.

Specific allowances are to be given in respect of the following

  • Flat Roof Allowance

Category 1 and 2 buildings with a flat roof are to receive an end allowance of up to 15% as follows -

  1. a) £80 per m2 ARC of the footprint of the flat roof for buildings constructed up to and including 2004.

    b) £60 per m2 ARC of the footprint of the flat roof for buildings constructed after 2004.

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

  3. What is flat as opposed to a pitched roof will generally be self evident. Flat roofing allowances will automatically apply here to all types of flat roof. In instances where an allowance is sought for pitched roofing caseworkers should seek advice from the National Specialist Unit before proceeding.

  • Oil, LPG or Electric Central Heating

Where a school has oil, LPG fired central heating or electrical heating, an end allowance of 5% shall be applied to the valuation.

  • Application and Caps on Allowances

Where only end allowances excluding flat roof allowance are applicable a cap of 15% will apply.

Where only Flat Roof allowances are applicable a cap of 15% will apply.

However, if either the end allowances or the flat roof allowances reach 15% the presence of non-reflected flat roofing or end allowance factors will extend the cumulative cap to 20%.

As was accepted in the 2005 and 2010 practice notes, it is recognised that basic caps on allowances can be exceeded in exceptional circumstances, regardless of whether the above “top up” position is reached.

Caseworkers should note that it is intended that qualifying heating allowances should stand outside of the above capping arrangements. It follows that in instances where the cap has been reached, either at 15% or at 20%, a further 5% allowance would apply if a heating allowance is warranted.

  • Repair Assumptions

The property is deemed to be in a reasonable state of repair, in line with the rating hypothesis. Therefore the costs should not be varied for the state of repair of the actual hereditament. However, when the controlling body has, on or before the material date, resolved to demolish a school rather than repair (solely on the grounds of condition) then this may be taken as an indication that the expenditure for repair would be considered uneconomic by the landlord. Such repairs cannot be assumed to have been made to the hereditament, and the standard age-based scale deductions will not necessarily be adequate. In such cases the caseworker must arrive at his own estimation of the appropriate allowance. In such cases, while the school is in use, Category 1 buildings can be treated as temporary (Category 3) structures.

5. The Application of the Design Guidelines

The design guidelines are set out in Appendix A. The notes below give further guidance in relation to less straight forward matters which maybe encountered-

  • Supplementary areas within the school which are not used by pupils during the school day will fall to be assessed but are to be excluded from design size calculation/over capacity.

Examples are as follows

Crèches, Nursery provision for 0 to 3 year olds and child care provisions for out of school hours

Adult Learning and Skills and centres for local authority learning such as staff training

Specially resourced facilities such as a designated SEN or disabilities unit and pupil referral units

None nursery school facilities such as community library facilities or youth centres

Accommodation for local authority designated support services, including peripatetic and support staff.

Parent or community room not available to the school

Chapel or similar place of worship not available to the school except for that purpose.

6. The Estimated Number of Pupils (ENP)

  • The valuation must reflect overcapacity identified as likely to persist from the antecedent valuation date (AVD). To quantify any allowance appropriate for overcapacity, it is necessary to find the estimated number of pupils (ENP) as at the AVD. In doing so regard must be had to the actual registered number of pupils as at April 2015. The best guide to this is provided by nationally collected statistics of pupil numbers for spring 2015. If this is a reliable indicator of long-term numbers it may be accepted as the ENP. If there is a falling or rising trend the ENP should be reduced or increased from the spring 2015 actual. In general this variation is unlikely to exceed 20%.

  • The spring 2015 statistics may be affected by some anomaly, which is unlikely to be repeated in subsequent years. In such cases it is necessary to ascertain future trend in registered numbers as discernible at AVD.

a.In nursery schools which have a summer term intake, the maximum number which the school must accommodate will not be reached until the summer term; where this practice is followed, the January figure will need to be increased by the summer term intake.

b.There may have been a physical change in the hereditament or locality post AVD which will affect the numbers the nursery school will have to accommodate, e.g.:

An extension to or partial demolition of the subject school,

A new nursery school or private day nurseries in the locality, the demolition or enlargement of an existing nursery school in the locality, new residential development in the locality, or clearance in the locality.

  • When schools have been closed on or before AVD without any prospect that they will reopen, a NIL assessment may be appropriate. Subsequent closures may justify a NIL assessment if they are caused by an MCC. But evidence of private demand as at AVD, must be taken into account.

Overcapacity Allowance

  • Where the GIA of the nursery school exceeds design size an allowance of 100% is to be made of the excess area in all cases.

  • The reduction should be applied firstly to any accommodation which is shown to be superfluous within the context of the overall operating needs of the nursery school and, any balance remaining spread pro rata to GIA among the accommodation. Where overcapacity is applied to a hereditament containing temporary buildings, investigations should be made so as to answer the following test: if the school was compelled to contract, which part(s) would be the first to be given up?

  • If the facts at the school provide insufficient direction, the opinion of a person in a position of responsibility (the school head or LEA official if appropriate) should be sought to provide an answer.

  • Appendix A has been compiled ignoring space requirements for community use and further education. The design size of the school should be increased by any accommodation used exclusively used for these purposes.(see section 5 above)

  • While Appendix A gives general guidance, it should not be taken to justify an allowance for overcapacity where other evidence suggests that no overcapacity exists. This depends on the facts of particular hereditaments and it may be necessary to form a judgment having regard to the use of temporary classrooms and any new-build post AVD.

  • There are a variety of reasons why an education authority might undertake post AVD construction or continue occupying temporary accommodation and it is not possible to consider every scenario in this practice note, which must permit a degree of valuation tolerance. However, the following guidance is presented, to indicate whether an overcapacity allowance is warranted:

  • Post AVD construction should not prevent an overcapacity allowance being given where the hereditament would have merited the allowance before the addition of the new floor space. But no overcapacity allowance should be given to the new floor space, except where it is provided to cope with demands expected to arise from an anticipated MCC, which has not yet materialised.

  • As a particular illustration of that exception, an allowance may be appropriate even for new post AVD floor space when new classrooms are erected in anticipation of future demand from a residential development. There may also be a phased occupation of a new school year by year which should also qualify for an overcapacity allowance which is in progress (see section 6 above) or has not yet been occupied in anticipation of another MCC, such as the planned closure of another school.

Appendix B 3

The Addition For Fees

Adjusted Replacement Cost (ARC)  Fee Level Minimum Fee
Up to  £750,000 14%  
£750,000 to £1,500,000 13%    £105,000
£1,500,000 to £4,000,000 11.5%    £195,000
£4,000,000 to £7,500,000 10.5%    £460,000
£7,500,000 to £15,000,00   9.5%    £787,500
Over £15,000,000   9  % £1,425,000

Appendix C

Multi-Floor allowances

No of Storeys Allowance
1 to 2 Nil
3 5%
4 10%
5 to 7 17.5%
8 storeys or more 8th Floor and above 22.5%                                    Below 8th Floor 17.5%

Appendix D

Age and obsolescence scales

Temporary Buildings

Age Allowance Age Allowance Age Allowance
2016 1.5% 2002 22.5% 1988 43.5%
2015 3.0% 2001 24.0% 1987 45.0%
2014 4.5% 2000 25.5% 1986 46.5%
2013 6.0% 1999 27.0% 1985 48.0%
2012 7.5% 1998 28.5% 1984 49.5%
2011 9.0% 1997 30.0% 1983 51.0%
2010 10.5% 1996 31.5% 1982 52.5%
2009 12.0% 1995 33.0% 1981 54.0%
2008 13.5% 1994 34.5% 1980 55.5%
2007 15.0% 1993 36.0% 1979 57.0%
2006 16.5 % 1992 37.5% 1978 58.5%
2005 18.0% 1991 39.0% Pre 1978 60.0%
2004 19.5% 1990 40.5%    
2003 21.0% 1989 42.0%    

Appendix E

Developed land value

Geographic Location Urban %/ £ per Hectare Rural %/£ per Hectare
Central London N 90.00 N/A
Central London S 39.00 N/A
GLNW 14.50 N/A
GLSW 44.50 N/A
GLNE 21.50 N/A
GLSE 26.75 N/A
North East 4.50 2.25
North West 9.75 4.87
Yorkshire & Humberside 8.25 4.12
East Midlands 4.50 2.25
West Midlands 8.00 4.00
East of England 15.25 7.62
South East 14.50 7.25
South West 10.25 5.12
North Wales 6.75 3.37
South Wales 8.75 4.37
Cardiff 21.50 10.75

The definitions of the areas referred to above can be found in the 2017 Land Value Practice Note

Practice note 1: 2010

1. Co-ordination Arrangements

This is a National Scheme Class. Responsibility for implementing the scheme set out within this Practice Note lies with the appropriate NDR business unit as does responsibility for ensuring effective co-ordination. The R2010 Special Category Code 159 should be used. As a generalist class the appropriate suffix letter is G.

2. Application

This valuation basis provides guidance on the method of valuation for rating purposes of all maintained schools in England & Wales. It is applicable to those schools which are controlled by either Local Education Authorities (LEAs) or voluntary bodies and to direct grant academies This basis should not be used for Free Schools which should be valued using the Public & Independent Schools PN (See IA120403) nor stand -alone LEA Nursery Schools which should be valued by reference to the dedicated nursery schools practice note.

3. Method of Valuation

1. Stage 1 – Estimated Capital Value

This property is valued using the non-bulk server.

The first stage of the Contractor’s Basis is to establish what it would cost to construct a substitute hereditament of the same size on a cleared site.

1.1 Design Size

The actual area of the existing school should already be known. However, it is possible that the actual school may be significantly larger than the design size that has been set down by the Department of Education for the pupil numbers at the school, in which case this overcapacity is disregarded in assessing the size of the modern substitute school.

The first areas that are discounted in this way are any temporary classrooms and only if there is still overcapacity, after this has been taken into account, should any allowance be applied to the main school accommodation – See Table A for Design Size Calculations and Further guidance.

1.2 Building Cost

The costs to be applied for the various categories are set down in Table B1: which are derived from actual cost evidence of modern schools and cost information published by DfES. The Costs in Table B1 are inclusive both of External Works and Professional Fees.

Table B2 states the costs to be applied to special external features (specialised sports facilities) and [Table B3 the obsolescence allowances to be applied to those costs in appropriate circumstances.

1.3 Location Adjustment

Where appropriate costs should be adjusted for location by reference to the Location Factors set down in the 2010 Rating Cost Guide and which for convenience are included at the end of this document.

1.4 Multi Storey Allowances

The allowances set down in Table C should be made to the whole of individual buildings. Each principal building should be considered separately.

The allowances are intended to reflect the operational difficulties of housing a school 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 of the multi-storey element, then it will be appropriate to apply the allowance to the extended part.

These allowances do not apply to schools situated in Central London (EC & WC, W1, W2, W11, W8, SW1, SW3, SW5, SW7 and SW10 Postal Districts)

2. Stage 2 – Adjusted Capital Value

The Estimated Replacement Cost established at Stage 1 above is converted to Adjusted Replacement Cost by selecting the cost appropriate to the year of construction in the table.

This adjustment takes into account deficiencies in the actual building from an occupational point of view, which is not reflected in the ERC.

For schools this is derived from two scales:

2.1 Physical and Functional Obsolescence

In order to provide a degree of uniformity the VOA Cost Guide contains guidance on appropriate allowances in the form of standard age related scales.

Table B1 shows the Build Costs, after indexation, compared with those of the modern substitute, and reflects the age related build quality during the various periods of construction.

In addition to the general physical & functional obsolescence scale referred to above, it is recognised that there was a period of building in the 1960s & 1970s when the actual standard of construction was inferior. The costs of buildings around this time have been investigated and after indexation, compared with those of the modern substitute. This has resulted in an age related build quality scale which reflects the build quality during these various periods.

It should be remembered that the price selected for the appropriate age of a building in Table B already reflects an allowance for the standard physical & functional obsolescence of the building including an allowance for the inferior build quality of 1960s & 1970s buildings.

Therefore, any further allowance for these aspects at Stage 5 will not normally be appropriate.

3. Stage 3 – Land Value

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

3.1 Developed Land

Consisting of the footprint of all buildings, associated landscaped areas, roadways, car parks and hard standings, paths, playgrounds, hard sports surfaces and open air swimming pools. It will normally consist of the whole site of the school less playing fields. The value of this category of land will be taken as a percentage of total adjusted replacement costs. The percentages are set out in Table D.

N.B.

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

(ii) Caseworkers 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 with populations not exceeding 3000 should be designated rural. While shading between the rural and urban percentages is permitted for schools sited on the urban fringe, it should only be applied where the developed land within the school hereditament falls within an area where it is likely no alternative development would be permitted.

3.2 Undeveloped Land

Will consist of the area of playing fields together with any minor 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.

The value of undeveloped land should be found by using a price per hectare derived from local evidence of transactions in other amenity or sports field land, typically in the range indicated in Table D. The value adopted should reflect fencing and drainage if they exist, but should not be subject to any separate addition for site works.

4. Stage 4 – Decapitalisation

The ARC of the buildings should be aggregated with the land value, and then decapitalised to an annual equivalent at the appropriate rate applicable to educational hereditaments as defined which for the purposes of the 2010 Rating List is 3.33%.(2.97% in Wales)

5. Stage 5 – Adjustment

5.1 The main function of this stage is for the caseworker to be satisfied that the figure produced represents the rental value of the hereditament on the statutory hypothesis.

This stage has been referred to as the “stand back and look” stage, but it is important to recall that a number of adjustments and allowances may already have been made at earlier stages. Therefore the caseworker must be careful to ensure that adjustments at this stage are only made for matters which have not already been considered.

The caseworker should review the preceding valuation stages and reflect upon whether any further adjustments are necessary. This allows for adjustments which cannot properly be made at the previous stages to be considered at Stage 5.

The value has already been adjusted prior to Stage 5 for (i) Physical and Functional Obsolescence, (ii) Age Related Build Quality, (iii) Location Factor & (iv) Multi-Storey Allowance.

5.2 A list of factors which may be considered at Stage 5 has been produced with indicative maximum allowances for the worst case scenarios and is reproduced as Table E.

The list is not exhaustive, and it has already been stated that any physical attribute of the hereditament that may affect the rent agreed between the hypothetical landlord and tenant should be considered here, if not already taken into account elsewhere in the valuation.

5.3 The correct measure of any adjustment is the effect on the rent that would be agreed between the hypothetical landlord and tenant, and not any estimation of cost. On this basis, it is unlikely that in all but the most exceptional circumstances, the total adjustments for Stage 5 Table E will exceed 15%.

However, where disputes on the appropriate level of allowance are unresolved these should be referred to the National Specialist Unit for advice.

5.4 Flat Roof Allowance

Category 1 and 2 buildings with a flat roof are to receive an end allowance of up to 15% as follows -

  1. a) £80m2 ARC of the footprint of the flat roof for buildings constructed up to and including 2004.

b) £60m2 ARC of the footprint of the flat roof for buildings constructed after 2004.

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

  2. What is flat as opposed to a pitched roof will generally be self evident. Flat roofing allowances will automatically apply here to all types of flat roof. In instances where an allowance is sought for pitched roofing caseworkers should seek advice from the National Specialist Unit before proceeding.

5.5 Oil, LPG or Electric Central Heating

Where a school has oil, LPG fired central heating or electrical heating, an end allowance of 5% shall be applied to the valuation

5.6 Application and Caps on Allowances

Where only Table E allowances are applicable a cap of 15% will apply.

Where only Flat Roof allowances are applicable a cap of 15% will apply.

However, if either the Table E allowances or the Flat Roof allowances reach 15% the presence of non-reflected flat roofing or Table E allowance factors will extend the cumulative cap to 20%.

As was accepted in the 2005 memorandum of agreement, it is recognised that basic caps on allowances can be exceeded in exceptional circumstances, regardless of whether the above “top up” position is reached.

Caseworkers should note that it is intended that qualifying heating allowances should stand outside of the above capping arrangements. It follows that in instances where the cap has been reached, either at 15% or at 20%, a further 5% allowance would apply if a heating allowance is warranted.

6. Repair Assumptions

The cost guide assumes that the property is in a reasonable state of repair, in line with the rating hypothesis. Therefore the costs should not be varied for the state of repair of the actual hereditament. However, when the controlling body has, on or before the material date, resolved to demolish a school rather than repair (solely on the grounds of condition) then this may be taken as an indication that the expenditure for repair would be considered uneconomic by the landlord. Such repairs cannot be assumed to have been made to the hereditament, and the standard age-based scale deductions will not necessarily be adequate. In such cases the caseworker must arrive at his own estimation of the appropriate allowance. In such cases, while the school is in use, Category 1 buildings can be treated as temporary (Category 3) structures.

Method and Guidance

See Table A for DFES Design Guidelines

Where a school has an area dedicated to Sure Start provision, this area should be included in the valuation and excluded from any overcapacity allowance. The Design Size has been calculated based on pupil numbers and therefore any areas devoted to Sure Start should be valued in addition to this calculated area.

The standard for secondary schools excludes wet leisure. Accordingly, for secondary schools with indoor swimming pools, the design size should be increased by the actual area of the wet leisure facility, subject in the case of facilities opened before 1 April 2000, to a maximum indicated by Table 1 in the PN for LA Leisure Centres.

Where dry sports hall (or, in the case of primary/middle schools) multi-purpose halls are also used by the community the Design Size of the school should be revised as indicated:

In the case of secondary schools, if the hall exceeds 594 sq.m. the design size of the school should be found by deducting 594 sq.m. from the design size indicated above and then adding the actual size of the hall.

In the case of all middle schools deduct 250 sq.m. and then add the actual size of the hall.

In the case of primary schools which share halls, the design size of the school should be found by:

  • deducting an area of:
  1. In the case of schools with an ENP not exceeding 420; 140 sq.m. (120 sq.m. where the school does not take children over the age of 7.

  2. In the case of schools with an ENP of over 420; 20 sq.m. plus 0.3 sq.m. per pupil

from the design size indicated above, and then

  • Adding the actual size of the hall

Where the actual size of halls in primary, middle or secondary schools has not been separately recorded, it may assist to note that the actual size of halls used for sport is commonly indicated by markings for badminton:

Thus, a …

One court hall is 180 sq.m.

Two court hall is 306 sq.m.

Three court hall is 486 sq.m.

Four court hall is 594 sq.m.

Six court hall is 918 sq.m.

Eight court hall is 1,221 sq.m.

Nine court hall is 1,377 sq.m.

Twelve court hall is 1,782 sq.m.

The Estimated Number of Pupils (ENP)

Valuation must reflect overcapacity identified as likely to persist from the AVD. In order to quantify any allowance appropriate for overcapacity, it is necessary to find the estimated number of pupils (ENP) as at the AVD. In doing so regard must be had to the actual registered number of pupils as at April 2008. The best guide to this is provided by nationally collected statistics of pupil numbers for Spring 2008; part-time pupils are counted at 50%, so the statistic given is the “full-time equivalent” total. If this is a reliable indicator of long-term numbers it may be accepted as the ENP. If there is a falling or rising

trend the ENP should be reduced or increased from the Spring 2008 actual. In general this variation is unlikely to exceed 20%.

The Spring 2008 statistics may be affected by some anomaly, which is unlikely to be repeated in subsequent years. In such cases it is necessary to ascertain future trend in registered numbers as discernible at AVD.

a. In primary and nursery schools which have a summer term intake for their lowest forms, the maximum number which the school must accommodate will not be reached until the summer term; where this practice is followed, the January figure will need to be increased by the summer term intake.

b. Whereas at AVD the pattern of education in the locality was about to change from primary/middle/secondary to primary/secondary, or where the changeover ages between these different types of school were about to be altered, the actual registered numbers as at Spring 2008 may not give good guidance as to capacity requirements in individual schools in subsequent years. The Spring 2008 statistics may still be used (if reliable in other respects) unless by the AVD, the Local Education Authority had resolved to change the age pattern. But, if it had so resolved, the caseworker should ascertain/anticipate the registered numbers in the first year of that change.

c. There may have been a physical change in the hereditament or locality post AVD which will affect the numbers the school will have to accommodate, e.g.:

n An extension to or partial demolition of the subject school,

n A new school in the locality, the demolition or enlargement of an existing school in the locality, new residential development in the locality, or clearance in the locality.

When schools have been closed on or before AVD without any prospect that they will reopen, a NIL assessment may be appropriate. Subsequent closures may justify a NIL assessment if they are caused by an MCC. But evidence of private demand as at AVD, must be taken into account.

Design Size

Having established the ENP, Table A will give the appropriate design size for the school in terms of overall GIA.

Overcapacity Allowance

Where the GIA of the school exceeds Design size an allowance of 100% is to be made of the excess area in all cases.

The reduction should be applied firstly to any accommodation which is shown to be superfluous within the context of the overall operating needs of the school and, any balance remaining spread pro rata to GIA among the Category 1 accommodation. Where overcapacity is applied to a hereditament containing Category 3 classrooms, investigations should be made so as to answer the following test: if the school was compelled to contract, which part(s) would be the first to be given up?

If the facts at the school provide insufficient direction, the opinion of a person in a position of responsibility (the school head or LEA official if appropriate) should be sought to provide an answer. Overcapacity may sometimes arise in Category 2 buildings, but in most hereditaments no appreciable inaccuracy is likely to result from concentrating the allowance in Categories 3 and 1.

Table A has been compiled ignoring space requirements for community use and further education. The design size of the school should be increased by any Category 1 or 2 areas exclusively used for these purposes.

While Table A gives general guidance, it should not be taken to justify an allowance for overcapacity where other evidence suggests that no overcapacity exists.

This depends on the facts of particular hereditaments and it may be necessary to form a judgment having regard to the use of Category 3 classrooms and any new-build post AVD.

There are a variety of reasons why an education authority might undertake post AVD construction or continue occupying Category 3 classrooms and it is not possible to consider every scenario in this memorandum, which must permit a degree of valuation tolerance. However, the following guidance is presented, to indicate whether an overcapacity allowance is warranted:

Post AVD construction should not prevent an overcapacity allowance being given where the hereditament would have merited the allowance before the addition of the new floor space. But no overcapacity allowance should be given to the new floor space, except where it is provided to cope with demands expected to arise from an anticipated MCC, which has not yet materialised.

As a particular illustration of that exception, an allowance may be appropriate even for new post AVD floor space when new classrooms are erected in anticipation of future demand from a residential development. There may also be a phased occupation of a new school year by year which should also qualify for an overcapacity allowance which is in progress or has not yet been occupied in anticipation of another MCC, such as the planned closure of another school.

Building Categories:

Category 1 Buildings:

Main school 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 and stores in Primary and Middle schools which are structurally an integral part of the main school buildings.

Excluded from the valuation:

  • Link walkways if only used for communication and storage.
  • Minor buildings (less than 26 sq.m) provided they are not used as teaching space or toilets.

Category 2 sports buildings

(i) Sports Halls

These include all sports halls (together with standard facilities) in Secondary schools and Primary and Middle schools where they are structurally not an integral part of the main school buildings.

Standard ancillaries include WCs, changing rooms, toilets, viewing gallery and fitness room.

The cost level given in Table B1 is appropriate for all Category 2 Sports Halls

(ii) Indoor Swimming Pools.

The cost level given in Table B1 (wet) is appropriate for all Category 2 Indoor 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 B2.

Category 3 Temporary Structures

This category includes temporary buildings and hutted accommodation which has a temporary life and is not of the same standard as Category 1 buildings.

Buildings within this category are normally 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 sectional portable buildings on pier foundations. Although “HORSA” and similar sectional concrete buildings are not easily portable, they were originally intended to be temporary and should be included in Category 3 unless they have been substantially improved both internally and externally, and been brought up to the standards of Category 1 buildings.

This category should also include stores which are not a structurally integrated part of the main school building.

Timber sheds (exceeding 26 sq.m.) and stores should be cost separately,

Canopies – a cost of £150 per sq.m should be applied to permanent canopies.

Canopies attached to Infant school Category 1 buildings constructed after 1996 should be excluded as they will have already been accounted for in Table B1.

Schedule of Tables

Table A - Design Guidelines

Table B1 - Building Costs

Table B2 - Cost Levels for Special External Features (Specialised Sports Facilities)

Table B3 - Obsolescence for Specialised Sports Facilities

Table C - Multi-Storey Buildings Allowances

Table D - Land Value

Table E - End Allowances

Practice note 2: 2010

1. Co-Ordination Arrangements.

This is a Group National Scheme Class. Responsibility for implementing the scheme as set out within this Practice Note lies with the Group as does responsibility for ensuring effective co-ordination. The R2010 Special Category Code 159 should be used. As a Group Class the appropriate suffix letter should be G. The description nursery school and premises should be applied to hereditaments to which this PN applies (see 2 below).

2. Application.

This valuation basis provides guidance on the method of valuation for rating purposes of all hereditaments consisting solely of maintained nursery schools in England & Wales, i.e. those providing education on a full or part time basis to children under compulsory education age (5). The number of such schools is comparatively small, and in some local education authority areas they are entirely absent, with all nursery education/childcare being met by the private sector. This PN does not apply to hereditaments where education is provided to under 5s together with older children; such hereditaments should be valued in accordance with PN 1:2010. Where a maintained nursery school and a contiguous maintained school for older children are under the same head teacher, they should be regarded as a single hereditament and valued in accordance with PN1:2010. A nursery school under a different head teacher, although contiguous with another school, should however be treated as a separate hereditament and valued in accordance with the advice provided below.

3. Method of Valuation: Rental/comparative or Contractor’s Basis

In many instances local authority nursery schools may be compared with private nurseries, in the sense that it is reasonable to suppose that a private operator would at the AVD have been in the market to take a tenancy of the hereditament. One (but not a necessary) indication of this is where the local authority nursery takes fee-paying pupils for after hours or holiday sessions. In such cases the hereditament should be valued by direct comparison with private day nurseries. In some instances the hereditament may not be suitable either by reason of its physical nature or its location, for a private operator. Locational requirements are not likely to be quite as restricted as in the past, since the introduction of a subsidy available to the parents of 3-5s to assist with nursery fees. At the AVD this subsidy effectively provided for 12.5 hours per week of childcare over 38 weeks of the year, with payment passing to the childcare provider. However where despite this incentive, a private operator would be unlikely to take the hereditament, the contractor’s basis should be used. Paragraphs 5 to 10 of this Practice Note provides advice on this method of valuation.

4. Referencing

Measurements should be taken to both GIA and NIA.. The area of any undeveloped land (i.e. grassed areas used for recreational purposes rather than for landscaping of buildings) should be measured and recorded. Note should be taken of the presence height and rating in Kws of any wind generators.

5. Application of the Contractor’s Basis.

The LA schools application should not be applied to separately assessed local authority nursery schools, and it is to be noted that the scheme set out below differs from that applied to other local authority schools in that (a) the standard design size and overcapacity adjustment used for the latter is not applied, (b) the costings set out below are (for permanent buildings) not inclusive of external works and fees (for which separate additions are made), and (c) contract size adjustment (in accordance with the standard scale set out in the VOA Cost Guide) applies.

6. Application of the contractor’s basis Stage 1 – Estimated Capital Value

6.1 The cost per sq m GIA adopted for nursery schools should be as follows. For permanent buildings constructed from 2010 onwards the cost adopted should be £1,120 per sq m GIA . For buildings constructed between 1.1.2005 and the end of 2009 the cost adopted should be £1,100 per sq m GIA. For buildings constructed in 2003 and 2004 the cost adopted should be £980 per sq m GIA. For buildings constructed between 1989 and 2002 (inc) the cost adopted should be £933 per sq m GIA. For older permanent buildings the following scale applies:

date of building Cost per sq m GIA
Pre 1956 £777
1956 £765
1957 £751
1958 £720
1959 £690
1960 £654
1961 £643
1962 £633
1963 £598
1964 £598
1965 £598
1966 £598
1967 £598
1968 £598
1969 £590
1970 £583
1971 £574
1972 £574
1973 £568
1974 £560
1975 £597
1976 £621
1977 £625
1978 £647
1979 £677
1980 £713
1981 £726
1982 £750
1983 £795
1984 £830
1985 £830
1986 £830
1987 £862
1988 £902

6.2 Although the standard overcapacity allowance embodied in the scheme for other local authority schools does not apply to nursery schools, if there is evidence that certain areas are not used and there are no plans to bring them into use, they may be deducted from the GIA before the costs indicated above are applied.

6.3 If sprinklers are present, the cost adopted should be uplifted by £30 per sqm.

6.4 All the above are subject to adjustment for location factors (as set out in the VOA Cost Guide) and an addition of 20% for external works.

6.5 The total of locationally adjusted building costs and external works is subject to contract size adjustment (in accordance with the scale in the VOA Cost Guide), with the resulting sum then subject to an addition of 12% for professional fees.

6.6 For temporary buildings with toilets a cost of £685 per sq m should be adopted, and for temporary buildings without WCs a cost of £587 per sq m. These costs are not subject to locational adjustment and no further additions need be made for external works or fees. These costs may therefore be added to the adjusted costs for permanent buildings.

6.7 If a wind generator is present an addition of £12,800 should be made.

7. Application of the contractor’s basis Stage 2 – Obsolescence allowance

The standard table for non –industrial buildings as set out in the VOA Cost Guide should be applied to permanent buildings.. After making such allowances, further allowances may be applied to certain multi-storied buildings. The amount of any such allowance should be as in Table C of PN1. Buildings qualifying for the multi-storey allowance are likely to be very rare in nursery schools.

For temporary buildings the allowances are 0% for any buildings dating from 2003 onwards, 5% for buildings dating from 2000-2002 (inc), 17% for buildings dating from 1995 –1999 (inc) and 40% for buildings pre 1995.

8. Application of the contractor’s basis Stage 3 – Land Value

The advice provided in PN1 for other local authority schools should be applied, with developed land valued at the same percentages of the sum resulting from stages 1 and 2 (the adjusted replacement cost) as indicated in Table D(i) to Appendix A to PN1. Undeveloped land will be rare in nursery schools, but if present should be valued at the price per hectare indicated at Table D(ii) of that same Appendix.

9. Application of the contractor’s basis Stage 4 – De capitalisation

The results of Stages 1-3 should be decapitalised at the lower statutory decap rate as prescribed for educational hereditaments in England (3.33%) and in Wales (2.97%).

10. Application of the contractor’s basis Stage 5 – End adjustments.

The guidance provided in Table E of PN 1 should be applied.

Practice Note 2: 2005 - The Valuation Basis for rating of local authority, voluntary aided/controlled, and foundation schools

Introduction

This valuation basis provides guidance on the method of valuation for rating purposes of all maintained schools in England & Wales. And is applicable to both those which are controlled by Local Education Authorities (LEAs) and voluntary bodies, and those which have opted-out to be Foundation Schools (former grant-maintained schools).

This valuation basis has been composed with reference to current legislation and relevant case law.

It has been discussed and agreed with the representatives of the majority of LEAs.

1) Stage 1 – Estimated Capital Value

The first stage of the Contractor’s Basis is to establish what it would cost to construct a substitute hereditament on a cleared site.

1.1 Design Size

Firstly the actual area of the existing school should already be known. However, it is possible that the actual school may be significantly larger than the design size that has been set down by the Department of Education and Skills for the pupil numbers at the school, in which case a proportion of this overcapacity is disregarded in assessing the size of the modern substitute school. The first areas that are discounted in this way are any temporary classrooms and only if there is still overcapacity after this has been taken into account should any allowance be applied to the main school accommodation – See Appendix B for Design Size Calculations and further guidance.

1.2 Building Cost

The costs to be applied for the various categories are set down in Appendix A Table A; these have been derived from actual cost evidence of modern schools and cost information published by DfES. The Costs in Table A are inclusive of both External Works and Professional Fees

1.3 Location Adjustment

Where appropriate costs should be adjusted for location by reference to the Location Factors listed in Table E.

1.4 Multi Storey Allowances

The following general 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 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 school 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.

These allowances do not apply to schools situated in Central London (as defined in 3 below)

2) Stage 2 – Adjusted Capital Value

The Estimated Replacement Cost established at Stage 1 above is converted to Adjusted Replacement Costs by selecting the cost appropriate to the year of construction in the table.

This adjustment takes into account deficiencies in the actual building from an occupational point of view which are not reflected in the ERC.

For schools this is derived from two scales

2.1 Physical and Functional Obsolescence

In order to provide a degree of uniformity the VOA Rating Cost Guide contains guidance on appropriate allowances in the form of standard age related scales.

In addition to the general physical & functional obsolescence scale referred to above, it is recognised that there was a period of building in the 1960’s & 1970’s when the actual standard of construction was inferior, the costs of buildings around this time have been investigated and after indexation, compared with those of the modern substitute, this has resulted in an age related build quality scale which reflects the build quality during these various periods.

It should therefore be remembered that by selecting the price for the appropriate age of building in Table 1, this already reflects allowance for the standard physical & functional obsolescence of the buildingallowance for the inferior build quality of 1960’s & 1970’s buildings. Therefore, any further allowance for these aspects at Stage 5 will not normally be appropriate. These allowances have been agreed as part of the overall memorandum.

3) Stage 3 – Land Value

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

Developed land - consisting of the footprint of all buildings, associated landscaped areas, roadways, car parks and hardstandings, paths, and playgrounds, hard sports surfaces and open air swimming pools It will normally consist of the whole site of the school 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 below :

Urban Rural
Central London (EC and WC, W1, W2, W11, W8, SW1, SW3SW5, SW7 and SW10 Postal Districts) 50% N/A
Remainder of London and Heathrow – M25 Belt 25% 15%
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 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. 16% 8%
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) Caseworkers 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 with populations not exceeding 3000 should be designated rural. While shading between the rural and urban percentages is permitted for schools sited on the urban fringe, it should only be applied where the developed land within the school hereditament falls within an area where alternative development would not be likely to be permitted.

b. Undeveloped land - will consist of the area of playing fields together with any associated minor 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.

The value of undeveloped land should be found by using a price per hectare derived from local evidence of transactions in other amenity or sports field land, typically in the range of £10,000 to £30,000 per ha. The value adopted should reflect fencing and drainage if they exist, but should not be subject to any separate addition of site works.

4) Stage 4 – Decapitalisation.

The ARC of buildings should be aggregated with land value, and then decapitalised to an annual equivalent at the appropriate rate. This rate is as prescribed, 3.33% in England and 3.3% in Wales, and cannot be varied.

5) Stage 5 – Adjustment

5.1

The main function of this stage is for the caseworker to be satisfied that the figure produced represent the rental value of the hereditament on the statutory hypothesis.

This stage has been referred to as “the stand back and look” stage but it is important to recall that a number of adjustments and allowances may already have been made at earlier stages. Thus the caseworker must be careful to ensure that adjustments at this stage are only made for matters which have not already been considered.

The caseworker should review the four stages that have preceded and make such further adjustments to them which, on reflection, are necessary, leaving those which cannot properly be made at the previous stages to be considered at Stage 5.

For the avoidance of doubt, the value has already , prior to Stage 5, been adjusted for (i) Physical and Functional Obsolescence, (ii) Age Related Build Quality, (iii) Location Factor & (iv) Multi-Storey Allowance.

5.2

Following discussions, a list of factors which may be considered at Stage 5 has been produced with indicative maximum allowances for the worst case scenarios and is reproduced as Appendix C.

This list is not exhaustive, and it has already been stated that any physical attribute of the hereditament that may affect the rent agreed between the hypothetical landlord and tenant should be considered here, if not already taken into account elsewhere in the valuation.

The correct measure of any adjustment is the effect on the rent that would be agreed between the hypothetical landlord and tenant, and not any estimation of cost. On this basis, it is unlikely that in all but the most exceptional circumstances, that the total adjustments at Stage 5 will exceed 15%.

5.3 Repair Assumptions

The cost guidance assumes that the property is in a reasonable state of repair, in line with the rating hypothesis. Therefore, the costs should not be varied for the state of repair of the actual hereditament. However, where the controlling body has, on or before the material day, resolved to demolish a school rather than repair (solely on the grounds of condition) then this may be taken as an indication that the expenditure for repair would be considered uneconomic by the landlord. Such repairs cannot be assumed to have been made to the hereditament, and the standard age-based scale deductions will not necessarily be adequate; in such cases the caseworker must arrive at his own estimation of the appropriate allowance. But in such cases, while the school is still in use, the value placed on Category 1 buildings will not normally be less than that which would have been appropriate had they been temporary (Category 3) structures.

Appendix A - Building Categories and Costs: Specialised Sports facilities costs and obsolescence; location factors

Cost levels for buildings.

Cost levels per sq m for the following categories (explained below) of building are as follows:

Table A - Category 1 & 2 Buildings

Primary and Middle Schools Secondary Schools
Date Cat 1 Cat 2 Cat 2 Cat 1 Cat 2 Cat 2
Sports Hall Indoor Pool Sports Hall Indoor Pool
Pre 1956 £456 £335 £656 £502 £368 £721
1956 £457 £336 £657 £495 £364 £712
1957 £457 £336 £658 £490 £359 £704
1958 £446 £328 £641 £458 £337 £659
1959 £435 £319 £625 £472 £346 £678
1960 £418 £307 £601 £472 £347 £679
1961 £419 £307 £602 £473 £347 £680
1962 £419 £308 £603 £473 £347 £680
1963 £402 £295 £578 £474 £348 £681
1964 £396 £290 £569 £474 £348 £682
1965 £397 £291 £570 £475 £349 £683
1966 £415 £305 £597 £475 £349 £683
1967 £427 £313 £614 £476 £349 £684
1968 £434 £319 £624 £470 £350 £685
1969 £434 £319 £624 £470 £350 £686
1970 £435 £319 £625 £471 £345 £677
1971 £435 £320 £626 £471 £346 £678
1972 £441 £324 £634 £472 £346 £678
1973 £442 £324 £635 £479 £351 £688
1974 £442 £324 £635 £513 £376 £737
1975 £478 £351 £688 £550 £404 £791
1976 £503 £369 £723 £571 £419 £821
1977 £514 £377 £739 £590 £432 £848
1978 £539 £396 £775 £608 £447 £873
1979 £570 £418 £819 £655 £481 £942
1980 £609 £446 £874 £703 £516 £1,010
1981 £627 £460 £901 £750 £550 £1,077
1982 £656 £482 £944 £750 £550 £1,078
1983 £704 £517 £1,012 £798 £585 £1,146
1984 £751 £551 £1,080 £799 £585 £1,147
1985 £752 £552 £1,080 £799 £586 £1,148
1986 £752 £552 £1,081 £800 £586 £1,148
1987 £800 £586 £1,149 £800 £586 £1,149
1988 £847 £622 £1,218 £847 £622 £1,218
1989 £885 £650 £1,273 £885 £650 £1,273
1990 £896 £657 £1,287 £896 £657 £1,287
1991 £906 £664 £1,301 £905 £664 £1,301
1992 £916 £672 £1,316 £916 £672 £1,316
1993 £926 £679 £1,330 £925 £679 £1,330
1994 £936 £686 £1,344 £936 £686 £1,344
1995 £946 £694 £1,358 £945 £694 £1,358
1996 £950 £698 £1,366 £950 £698 £1,366
1997 £955 £701 £1,373 £955 £701 £1,373
1998 £960 £705 £1,380 £960 £705 £1,380
1999 £965 £708 £1,387 £965 £708 £1,387
2000 £970 £712 £1,394 £970 £712 £1,394
2001 £975 £715 £1,401 £975 £715 £1,401
2002 £980 £719 £1,409 £980 £719 £1,409
2003 £1,035 £723 £1,416 £1,035 £723 £1,416
2004 £1,040 £726 £1,423 £1,040 £726 £1,423
2005 £1,045 £730 £1,430 £1,045 £730 £1,430

Table B - Category 3 Buildings

Adjusted £/m2 Adjusted £/m2
Date Temp, no WC (TN) Temp, with WC (TW)
Pre 1995 1995 – 1999 2000 – 2002 2003 Onwards £260/m2 £372/m2 £425/m2 £448/m2 £304/m2 £437/m2 £499/m2 £523/m2

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.

Building Categories:

Category (1) Buildings:

Main school 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 Primary and Middle schools which are structurally an integral part of main school buildings stores which are structurally integral to the main school buildings.

Category (2) Sports buildings:

i. Sports Halls (Basic and Superior)

These include all sports halls (together with standard ancillaries) in Secondary schools. Those in Primary and Middle schools which are structurally not integral parts of the main school building are also Category 2. 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 C.

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 school 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 Appendix E.

Cost levels for special external features

Certain special external features require specific additional costing in accordance with Table C, and will be subject to the locational adjustment factors set out in Appendix E.

Table C - Specialised Sports Facilities

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.

Table D – Obsolescence for Specialised Sports Facilities.

It will be appropriate to consider allowances for obsolescence in respect of some of these features :-

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 open air swimming pools the following age related scale should be applied :-

2005 0% 1987 16%
2004 0.5% 1986 18%
2003 1.0% 1985 20%
2002 1.5% 1984 22%
2001 2.0% 1983 24%
2000 2.5% 1982 26%
1999 3.0% 1981 28%
1998 3.5% 1980 30%
1997 4.0% 1979 32%
1996 4.5% 1978 34%
1995 5.0% 1977 36%
1994 6.0% 1976 38%
1993 7.0% 1975 40%
1992 8.0% 1974 42%
1991 9.0% 1973 44%
1990 10 % 1972 46%
1989 12 % 1971 48%
1988 14 % Pre 1971 50%

For other features mentioned in Table C above, the age related scale set out below should be adopted:

2005 0% 1989 11%
2004 0.5% 1988 12%
2003 1.0% 1987 13%
2002 1.5% 1986 14%
2001 2.0% 1985 15%
2000 2.5% 1984 16%
1999 3.0% 1983 17%
1998 3.5% 1982 18%
1997 4.0% 1981 19%
1996 4.5% 1980 20%
1995 5.0% 1979 21%
1994 6.0% 1978 22%
1993 7.0% 1977 23%
1992 8.0% 1976 24%
1991 9.0% Pre 1976
1990 10%

Table E Location Factors

NORTHERN REGION SOUTH WESTERN REGION
Cleveland 0.91 Avon 0.96
Cumbria 0.95 Cornwall 0.93
Durham 0.91 Devon 0.94
Northumberland 0.94 Dorset 0.97
Tyne and Wear 0.91 Gloucestershire 0.96
Somerset 0.94
YORKSHIRE AND HUMBERSIDE REGION Wiltshire 0.96
Humberside 0.9
North Yorkshire 0.91 West midlands region
South Yorkshire 0.9 Hereford and Worcester 0.95
West Yorkshire 0.88 Shropshire 0.94
Staffordshire 0.93
EAST MIDLANDS REGION Warwickshire 0.98
Derbyshire 0.93 West Midlands 0.96
Leicestershire 0.93
Lincolnshire 0.93 NORTH WEST REGION
Northamptonshire 0.98 Cheshire 0.94
Nottinghamshire 0.92 Greater Manchester 0.95
Lancashire 0.95
EAST ANGLIA REGION Merseyside 0.96
Cambridgeshire 1.04
Norfolk 0.97 WALES
Suffolk 1.01 Clywd 0.9
Dyfed 0.95
Gwent 0.95
Gwynedd 0.91
Mid Glamorgan 0.95
Powys 0.92
South Glamorgan 0.96
West Glamorgan 0.93
Greater London
Barking and Dagenham 1.13 Hillingdon 1.15
Barnet 1.19 Hounslow 1.15
Bexley 1.2 Islington 1.24
Brent 1.21 Kensington and Chelsea 1.35
Bromley 1.16 Kingston Upon Thames 1.24
Camden 1.32 Lambeth 1.26
City of London 1.26 Lewisham 1.17
City of Westminster 1.3 Merton 1.21
Croydon 1.2 Newham 1.13
Ealing 1.2 Redbridge 1.12
Enfield 1.14 Richmond Upon Thames 1.2
Greenwich 1.2 Southwark 1.3
Hackney 1.27 Sutton 1.16
Hammersmith and Fulham 1.27 Tower Hamlets 1.23
Haringey 1.22 Waltham Forest 1.19
Harrow 1.16 Wandsworth 1.25
Havering 1.07
SOUTH EAST REGION (EXCLUDING LONDON)
Bedfordshire 1.08 West Sussex 1.1
Essex 1.08 Berkshire 1.1
Hertfordshire 1.13 Buckinghamshire 1.09
Kent 1.12 Hampshire 1.06
Surrey 1.16 Isle of Wight 1.07
East Sussex 1.12 Oxfordshire 1.05

Appendix B - Design Size/Overcapacity Allowance

Design Size

Primary School - age 5 - 11 Middle School - age 8 - 12 Secondary School - age 11 - 16/18
No of Pupils Design Size m2/Pupil No of Pupils Design Size m2/Pupil No of Pupils Design Size m2/Pupil
80 or less 2.7 + 80m2 80 or less 2.7 + 80m2 520 or less 8.40
81 to 90 4.10 - 4.25 81 to 90 3.45 - 4.55 521 to 700 8.40 - 8.15
91 to 100 4.25 - 4.75 91 to 100 4.55 - 5.20 701 to 800 8.15 - 8.05
101 to 110 4.75 - 5.25 101 to 110 5.20 - 5.85 801 to 900 8.05 - 7.85
111 to 120 5.25 - 5.40 111 to 120 5.85 - 6.05 901 to 1050 7.85 - 7.65
121 to 150 5.40 - 5.20 121 to 150 6.05 - 5.85 1051 to 1200 7.65 - 7.55
151 to 180 5.20 - 4.95 151 to 180 5.85 - 5.65 1201 to 1350 7.55 - 7.45
181 to 300 4.95 - 4.65 181 to 300 5.65 - 5.40 1351 to 1500 7.45 - 7.35
301 to 450 4.65 - 4.45 301 to 450 5.40 - 5.25 1501 to 1800 7.35 - 7.25
Above 450 4.40 451 to 520 5.25 - 5.15 1801 to 1950 7.25 - 7.15
Above 520 5.10 Above 1951 7.10

Note: For all ranges, Design Size should be found by interpolation.

Eg. Primary School with 210 pupils: Design Size 210 x {[(4.95 - 4.65)(300 - 180) x (300 - 210)] + 4.65} = 210 x 4.875 = 1023.75 say, 1024m2

The Estimated Number of Pupils (ENP)

Valuation must reflect overcapacity identified as likely to persist from the AVD. In order to quantify any allowance appropriate for overcapacity, it is necessary to find the estimated number of pupils (ENP) as at the AVD. In doing so regard must be had to the actual registered number of pupils as at April 2003. The best guide to this is provided by nationally collected statistics of pupil numbers for Spring 2003; part-time pupils are counted at 50%, so the statistic given is a “full-time equivalent” total. If this is a reliable indicator of long term numbers, it may be accepted as the ENP. If there is a falling or rising trend the ENP should be reduced or increased from the Spring 2003 actual. In general, this variation is unlikely to exceed 20%.

The Spring 2003 statistics may be affected by some anomaly which is unlikely to be repeated in subsequent years. In such cases it is necessary to ascertain the future trend in registered numbers as discernible at AVD.

(i) In primary and nursery schools which have a summer terms intake for their lowest forms, the maximum number which the school must accommodate will not be reached until the summer term; where this practice is followed, the January figure will need to be increased by the summer term intake.

(ii) Where as at AVD the pattern of education the locality was about to change from primary/ middle/secondary to primary/secondary, or where the changeover ages between these different types of school were about to be altered, the actual registered numbers as at Spring 2003 may not give good guidance as to capacity requirements in individual schools in subsequent years. The Spring 2003 statistics may still be used (if reliable in other respects) unless by the AVD, the Local Education Authority had resolved to change the age pattern. But if it had so resolved, the caseworker should ascertain/anticipate the registered numbers in the first year after that change.

(iii) There may have been a physical change in the hereditament or locality post AVD which will affect the numbers the school will have to accommodate, eg:

(a) an extension to or partial demolition of the subject school

(b) a new school in the locality, the demolition or enlargement of an existing school in the

locality, new residential development in the locality, or clearance in the locality.

When schools have been closed on or before AVD without any prospect that they will reopen, a NIL assessment may be appropriate. Subsequent closures may justify a NIL assessment if they are caused by an MCC. But evidence of private demand as at AVD, must be taken into account.

Design Size

Having established the ENP, Table 2 will give the appropriate design size for the school in terms of overall GIA.

Overcapacity Allowance

Where the actual GIA of the school exceeds design size, an allowance may be made of 80% (90% for schools in rural areas with pupil numbers of 100 or less) of the excess. The allowance may be implemented by reducing the aggregate GIA by an area which is 80% (90% for small rural schools) of the excess. The reduction should be applied firstly to any accommodation which is shown to be superfluous within the context of the overall operating needs of the school, and any balance remaining spread pro rata to GIA among the Category 1 accommodation. Where overcapacity allowance is applied to a hereditament containing Category 3 classrooms, investigations should be made so as to answer the following test:

if the school was compelled to contract, which part(s) would be the first to be given up?

If the facts at the school provide insufficient direction, the opinion of a person in a position of responsibility (the school head or LEA official if appropriate) should be sought to provide an answer. Overcapacity may sometimes arise in Category 2 buildings, but in most hereditaments no appreciable inaccuracy is likely to result from concentrating the allowance in Categories 3 and 1.

Table 1 has been compiled ignoring space requirements for community use and further education. The design size of the school should be increased by any Category 1 or 2 areas exclusively used for these purposes.

While Table 1 gives general guidance, it should not be taken to justify an allowance for overcapacity where other evidence suggests that no overcapacity exists.

This depends on the facts of particular hereditaments and it may be necessary to form a judgment having regard to the use of Category 3 classrooms and any new-build post AVD.

There are a variety of reasons why an education authority might undertake post AVD construction or continue occupying Category 3 classrooms and it is not possible to consider every scenario in this Memorandum, which must permit a degree of valuation tolerance. However, the following guidance is presented, to indicate whether an overcapacity allowance is warranted:

(i) Post AVD construction should not prevent an overcapacity allowance being given where the hereditament would have merited the allowance before the addition of the new floor space. But no overcapacity allowance should be given to the new floor space, except where it is provided to cope with demands expected to arise from an anticipated MCC, which has not yet materialized.

As a particular illustration of that exception, an allowance may be appropriate even for new, post AVD floor space when new classrooms are erected in anticipation of future demand from a residential development There may also be a phased occupation of a new school year by year which should also qualify for a superfluity allowance which is in progress or has not yet been occupied or in anticipation of another MCC, such as the planned closure of another school.

Application of Overcapacity Allowance

The following examples provide guidance on how the allowance should normally be applied;

(A) to a school with Category 2 and Category 1 accommodation where the latter is of uniform date, and character

(B) to a school where the Category 1 accommodation is of different date, and

(C) to a school with Category 3 accommodation, as well as Category 1

(D) to a school when new floor space is erected post AVD in anticipation of future demand from a residential development

(E) to a school where at AVD there is both full use and anticipated continued use of portable classrooms (except where used in preference to existing Category 1 space: see Note (iii) above), where:

a. the ENP has not declined between the date of erection of the portable classrooms and the AVD,

and

b. there has been no increase in Category 1 GIA between those same dates.

(F) to a school where new floor space is erected post AVD other than in anticipation of future demand.

Example A

A Primary School with 250 pupils has a design size of 1194 sq m, and an actual GIA of 1400 sq m Category (1), and 200 sq m Category (2).

The aggregate area is therefore 1600 sq m.

This exceeds design size by 406 sq m. There is no evidence that the Cat 2 space is larger than needed, so the allowance is concentrated in the Category 1 accommodation. Thus the overcapacity allowance is made by deducting 325 (80% of 406) sq m from the Category (1) total.

The valuation thus proceeds as follows;

Category (1) GIA 1075 sq m

Category (2) GIA 200 sq m.

Where the school consists of Category 1 buildings of differing ages, or where multi-storey allowances affect Category (1) buildings differently, the aggregate overcapacity allowance should be apportioned between them in the ratio of their full GIAs.

Example B

If in the primary school considered above, Category (1) accommodation is split between a 1965 building of 400 sq m, and a 1996 building of 1000 sq m, the deduction of 325 sq m from the Category (1) aggregate area will be as follows:

reduction for 1965 building 325 x 400/1400 = 93 sq m

reduction for 1996 building 325 x 1000/1400 = 232 sq m.

Example C

In the primary school considered above there is in addition a Category 3 portable classroom of 300 sq m. It was installed in 1997 to cope with an increase in pupil numbers in that year. Numbers declined in 1998 and the space is not now needed, but 200 sq m. of the classroom is fully used, 100 sq m. is not used and should be ignored.

It is therefore appropriate to apply an overcapacity allowance. In deciding how the allowance should be applied, it is necessary to apply the following test; if the school was compelled to contract, which block would be the first to be removed? If in this case the temporary classrooms would be removed first, the allowance is applied thus;

The aggregate area is 1800 sq m, and this exceeds design size by 606 sq m, so an allowance of 80% of this, 485 sq m, is warranted. This must be applied first to the Category 3 space,

Total allowance 485 sq m

less Cat 3 GIA 200 sq m

balance of allowance 285 sq m

The valuation therefore proceeds ignoring the Category 3 space and allocating the balance of the overcapacity allowance between the Category 1 buildings on a pro rata basis, in the same way as in Example B.

Example D

In the primary school considered in Example A there is an addition of Category 1 classroom of

200 sq m. It was installed in 2002 to cope with an anticipated increase in pupil numbers due to a new residential development planned to be built in 2006.

The aggregate area is 1800 sq m, and this exceeds design size by 606 sq m, so an allowance of 80% of this, 485 sq m, is warranted. This must be applied to all the Category 1 space pro-rata as follows:

Reduction for existing Cat 1 GIA 485 x 1400/1600 = 424

Reduction for newer Cat 1 GIA 485 x 200/1600 = 61

The construction of the new residential development in 2006 will be a material change of circumstances and will justify removal of the overcapacity allowed in that year.

Example E

In the primary school considered in Example A, there is in addition to the existing space, which is in use, a new block of 200sq m. added in 2004. There has been no increase in the pupil numbers but circumstances show that the school requires the extra space. In the absence of any evidence in these circumstances to justify an increased allowance for overcapacity due to the new building, the overcapacity allowance prior to the new building should continue (a 325m2 deduction). The total floor space valued as follows:

Category (1) GIA 1600 sq m

Category (2) GIA 200 sq m

Deduction for Category 1 = 325

Revised Category (1) area = 1275 sq m

Category (2) GIA 200 sq m

Appendix C - End Adjustments at Stage 5

Adjustment for Remarks Allowance Applied to Maximum Allowance
Insufficient Parking and/or Poor Access Whole School 5%
Dispersal, Poor Layout, Piecemeal Development Combined Effects Whole School 7.5%
Lack of Hard Surfaced Playground Whole School 5%
School Split between two or more sites Will only be one assessment where functionally essential Part Reliant on other site (ie part of school that needs to use dining facilities elsewhere) Norm 5% Up to Max of 10%
No Playing Fields Where Playing Fields are the Norm for the locality and type of school Whole School Up to 10%
Sloping Playing Fields Undeveloped Land Value Up to 25%
Open Plan Classrooms Problems of noise, etc Relevant Area Up to 10%
Asbestos Each Case on its Merits
Inequity of Girls vs Boys Toilets Published Standard 1 toilet per 10 pupils under 5 years and 1 toilet per 20 pupils over 5 years Whole School Up to 2%
Inadequate Kitchen or Dining Facilities Whole School Up to 5% (None) (but no allowance for absence of dedicated dining room in primary schools) 2.5% (Inadequate)
Inadequate Staff Accom. Whole School Up to 2%
Inadequate Ancillary Accom. Whole School Upto 1%
Lack of Fencing to Tennis Courts Relevant Area Upto 10%
Inadequate Corridor Width Whole School 2%
Inadequate Assembly Halls Only to be applied where whole school assembly is an issue Whole School 4%
Site prone to Flooding Each Case on its merits
Playground only accessible by steps Whole School Up to 2.5%
Complicated Emergency Evacuation Routes Whole School Up to 2%
Classrooms unsuitable for delivery of curriculum i) Primary Schools Issue tends to be class specific Relevant Area Up to 10%
Classrooms unsuitable for delivery of curriculum ii) Secondary Schools Less Classroom Specific – Layout Issue (See Above) Whole School (See Layout)

A reduction should also be given at Stage 5 of £7.49 RV psm of the ‘foot print’ area of felted flat roofs of pre 1960 and post 1980 buildings, and in the case of flat roofed pre 1960 and post 1980 buildings with other coverings, £3.76 RV psm of the foot print of the flat roof. This does not apply to Category 3 buildings.

This list is not exhaustive and caseworkers should refer to the Section on Stage 5 Allowances.

The above should not be seen as a check list nor to be considered cumulatively. It is intended for guidance and to assist in consistency of approach between properties. When taking all factors to be considered at Stage 5 into account these will not normally exceed 15% in total. However, exceptionally, where a flat roof allowance, considered by itself, amounts to 15% or more of the value resulting from Stages 1- 4, while the allowance for flat roof is capped at 15%, additional allowance may be given for other stage 5 factors, provided that the total aggregate allowance for all stage 5 factors should not normally exceed 20%.

Practice note 1: 2005 - local authority and other maintained schools

1. Co-Ordination Arrangements

This is a Group National Scheme Class. Responsibility for implementing the scheme as set out within this Practice Note lies with the Group as does responsibility for ensuring effective co-ordination.

The R2005 Special Category Code 159 should be used. As a Group Class the appropriate suffix letter should be G.

2. Approach to the valuation

2.1 General

This note deals with the valuation of all types of local authority and other maintained schools. A central agreement has been reached with a consortium of agents representing local education authorities. The Memorandum of Agreement forms Practice Note 2: 2005 and replaces the originally issued Practice Note.

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

3.1 Local Authority and Other Maintained Schools except Special Schools

The basis of valuation to be applied to Local Authority and other maintained schools is reproduced as Practice Note 2.

3.2 Special Schools

The valuation of these type of schools no longer forms part of this practice note.