Local authority and other maintained schools

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

1. Scope

The hereditaments to which this section refers are as follows:

  • Community schools (often formerly described as “County Schools”), i.e. those provided and maintained by Local Education Authorities (LEAs) whether County Councils, Metropolitan Boroughs or London Boroughs.
  • Voluntary schools, i.e. those provided by other bodies, usually religious bodies, but maintained by LEAs.
  • Foundation schools where the governing body employs the school’s staff and has primary responsibility for admission arrangements. The school’s 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.
  • State funded Academies are technically independent schools with greater freedoms regarding the teaching of the National Curriculums 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.
  • Free schools, including Studio schools, are a type of Academy. They can be located in a variety of buildings, including converted offices, in addition to purpose-built school buildings. Each should be considered individually and referred to NVU Class Lead for advice to determine if this section or Rating Manual: Private and independent schools should be followed.

For the benefit of doubt this section does not refer to University technical colleges and City technical colleges (see Rating Manual: Colleges of further education). Nor does it include either LEA operated stand-alone nursery schools or independent day nurseries (see Rating Manual Day nurseries, nursery schools and other day care facilities for under fives).

It does apply to LEA run special schools (where not exempt), sixth form colleges, and primary (including nursery elements), middle, secondary (comprehensive and grammar), and all through schools, i.e. catering for pupils in the age range 3-16 (or 18) be they provided and maintained by the LEA or be they state funded academies. Due to their varied nature free schools should be considered on a case-by-case basis with advice from NVU Class Lead. This section is also applicable to pupil referral units (but design size criteria is not applicable) unless that unit is located within a building for which evidence exists to support a valuation based on the rental/comparative method.

2. List description and special category code

List Description: School and Premises

SCat Code159: Suffix G

3. Responsible teams

This is a generalist class and responsibility for valuation will lie with the appropriate business unit. Queries of a complex nature arising from the valuation of individual properties should be referred to the National Valuation Unit (NVU) Class Lead via the Class Co-ordination Team (CCT).

4. Co-ordination

NVU Civic Team has overall responsibility for the co-ordination of this class. The CCT are responsible for the approach to and accuracy and consistency of valuations. The CCT will deliver Practice Notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating lists. Caseworkers have a responsibility to:

  • Follow the advice given at all times.
  • Not depart from the guidance given on appeals or maintenance work without approval from the co-ordination team.
  • Seek advice from the co-ordination team should any issues arise that are not covered in this instruction.

Schools are a sui–generis class and consequently, as a general rule, only evidence relating to hereditaments in the same mode or category of use is pertinent. See:

  • Scottish and Newcastle (Retail) Ltd v Williams (VO) (RA 2000 P 119) and the subsequent Court of Appeal decision – Williams (VO) v Scottish and Newcastle Retail and Allied Domecq [RA 2001 P 41)
  • Re the appeal of Reeves (VO) RA 2007 P168
  • Dawkins (VO) v Royal Leamington Spa BC and Warwickshire County Council (1961) RVR 291.

See Rating Manual Section 2 Part 7 Appendix 2 thereof for guidance on mode and category of use at the material day.

6. Survey Requirements

6.1 Method of Measurement

There is virtually no arms-length open market rental evidence in this sector and as a consequence property within this class will normally be assessed using the contractor’s basis of valuation. Measurement should be to Gross Internal Area (GIA) as defined in the Valuation Office Code of Measuring Practice.

6.2 Description

The nature of the state education system will vary from one (LEA) area to the next but is commonly arranged in age ranges with nursery schools serving the 3–4-year age group, primary normally 4/5 to 11 (sometimes divided into infant and junior) and secondary 11-16 (or 18 if a sixth form is incorporated). However, some LEAs have Middle schools in their area which cater for the 8-12 or 9-13/14 age group. There is also a number of what is known as “all-through” or “all–age schools” which cater for pupils from age 3 to age 16/18.

Increasingly schools are converting to self-governing academy status with approximately 82% of secondary schools and approximately 43% of primary schools having academy status in January 2024. Within a few LEA areas selective education in the form of grammar schools still exists.

The size and specification of buildings and ancillary sports facilities will vary according to the type of school concerned.

6.3 Requirements

  1. Unit of Assessment

The principles referred to in Rating Manual Section 2 Part 2 2. Identification of the hereditament should be adhered to. In cases of difficulty advice from the Technical Advisor/NVU specialist should be obtained. The normal approach should be applied to the identification of hereditaments and no attempt should be made to aggregate property which on normal rating principles constitutes more than one hereditament. 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.

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:

  • the school or LEA exercises paramount control over the facilities, or
  • 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 (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 then providing they are of the same standard as, and are operated as, a local authority leisure centre, then that element should be costed in accordance with Rating Manual: Sports centres, tennis centres, swimming pools and leisure centres (local authority)

(using the dedicated spreadsheet – “Sports and Leisure Centres as an addition”), and should not be costed as a Category 2 school building. The appropriate de-capitalisation rate for the hereditament as a whole will be the lower prescribed rate provided the hereditament is mainly used for the purpose of a school. “Mainly” should be interpreted as over 50%, and where a leisure centre comprises 50%, or less, of the gross internal area of the whole hereditament, the lower de-capitalisation rate applies.

The lower rate can still apply even where the leisure centre comprises more than 50% of the whole GIA, provided that school use of the leisure centre is sufficient to justify this when the hereditament is viewed as a whole. If for example the school part of the hereditament is 3,000 sqm, and the leisure centre is 3,500 sqm (i.e. 54% of the whole GIA), but the leisure centre is 30% used for the purposes of the school (averaged over the year), the total school use should be assessed as (3000 + (30% x 3500))/(3000+3500)= 62%; in such a case the lower decap rate will still apply.

  1. Survey Detail

The following information is required:

  • A plan (CAD) or otherwise should be obtained where available and check dimensions made on site as necessary; otherwise, a plan should be drawn up.
  • Method of construction - e.g. temporary, traditional/permanent brick and tile or steel framed including roof type e.g. flat or pitched.
  • Dimensions (where measured to NIA) and description of the accommodation i.e. arts, science, or administrative block etc.
  • Only the GIA of individual building(s) and any extensions is required unless there is a significant variation in the type of accommodation.
  • For example, a separate GIA will be required if a sports hall and associated ancillary accommodation is not physically separated from the rest of the school. Likewise for such facilities as squash courts, garages, workshops etc.
  • The number of storeys for each building.
  • Flat roof area.
  • Age of all buildings/extensions.
  • Details of external sports facilities e.g. artificial playing surfaces, Astroturf, 3G, water based etc., athletics tracks and grass pitches together with a description of associated flood lighting.
  • Description and detail of services to the hereditament e.g. heating, air conditioning, security systems (to include CCTV, barriers, gates, and perimeter fencing), lifts, solar panels, wind turbines etc.
  • Brief details and the GIA of any domestic accommodation (In those rare cases where a school falling within the scope of this section incorporates boarding accommodation the guidance given in Rating Manual: Private and independent schools should be followed.
  • Where a place of religious worship is present details of the use to which it is put and whether it is open to the public at large together with description and GIA.
  • Number of car parking spaces for staff and visitors - or/and parking area, the nature of the surface, and a note of the extent of site landscaping.
  • The site area (split between developed and undeveloped land, the latter being principally grassed playing fields).
  • Establish by enquiry the number of pupils attending the school and the recognised capacity of the school (if available). The number of sixth formers and pre-school pupils should be recorded separately.
  1. Exemptions

i. Premises Provided for the Disabled

Any part of the hereditament which satisfies the provisions of section 16, Schedule 5 to the Local Government Finance Act 1988 should be regarded as exempt from rating and therefore ignored for valuation purposes. For further guidance see Rating Manual: Section 2 Part 6: Exemptions - Part A Property Used for Disabled Persons Special schools may well fall into this category but exemption must not be assumed and all relevant investigations must be carried out before exemption is conceded.

ii. Chapels

Under Para. 11 Sch. 5, LGFA 1988, exemption may be available for school chapels even where they do not comprise separate hereditaments, Chapels will be entitled to exemption where there is sufficient external invitation to the public and they are used as public places of worship, provided that they are certified as places of religious worship. For further guidance see Rating Manual: Section 2 Part 6 Exemptions – Part B: Places of Public Religious Worship.

7. Survey capture

Survey information including plans are to be stored on EDRM. The GIA of the building(s) is to be entered onto the valuation spreadsheet (local authority schools) held on the non-bulk server (NBS).

8. Valuation approach

The special nature of these hereditaments and the circumstances under which they operate will normally exclude a valuation approach on a receipts & expenditure basis and, in the absence of rental/comparative evidence for the hereditaments in this section, the basis of assessment is the contractor’s basis as detailed in Rating Manual: Section 4 Part 3 The Contractor’s Basis of Valuation and the practice note applicable to the relevant Rating List. Should case workers become aware of the existence of an arms-length lease relating to a state funded school full details are to be obtained, preferably on a Form of Return, and a completed copy forwarded to the relevant specialist in NVU.

9. Valuation support

Valuations are to be carried out using the dedicated Local Authority Schools spreadsheet held on the non-bulk server (NBS).

Practice note: 2023 - local authority schools

1. Market appraisal

1.1 According to statistics provided by the Department of Education on the Government web site (see schools, pupils and their characteristics) the number of pupils within the state funded school system in England increased during the period from 1/4/2015 to 1/4/2021. Both primary and secondary saw numbers increase by circa 50,000. The projections in 2021 for primary is a decrease to 2030 whilst the secondary population is projected to increase until 2024. A peak of births in 2013 has worked its way through primary schools. The number of pupils in special schools has seen a large increase of 29,000 (22%) Independent school numbers has seen a decrease since of 14,000 (2.4%).

1.2 There is now a total of 8.91 million pupils in England, an increase over 2015 of 352,000 (approx 4%).

1.3 The number of schools has increased by 70 since 2015 to 24,323 whilst the average number of pupils per class has reduced by circa 0.5 pupils.

1.4 The number of academies and free schools as a proportion of the total number of state funded schools continues to grow with over 37% of primary and 78% of secondary schools now having one or other of those designations.

1.5 The website Gov.Wales holds similar statistics for Welsh schools. The total number of pupils in state funded education in Wales having risen from 465,704 in 2015 to 469,176 in 2021.

1.6 The types of school and the statutory framework in which they operate remain largely as outlined in regard to the 2017 Rating List as does guidance in regard to school building design and space requirements (building Bulletin 103). Funding arrangements via the Priority Schools Building Programme and the Free school building programme remain as before.

2. Changes from the last practice note

2.1 As for the 2017 Rating List the method of valuation to be adopted in assessing this class of property is the Contractor’s basis. The approach to valuation remains largely as previously but there is no longer a distinction drawn between urban and rural schools in regard to the application of site value at stage 5 of the valuation. The age and obsolescence allowances applied at stage 2 are now arrived at using different methodology than was employed in regard to the 2017 Rating list and although those allowances continue to reflect all of the attributes and disadvantages of the actual hereditament in comparison with the modern substitute there is no longer a scale dedicated to sports and leisure buildings and swimming pools. However, a separate scale is retained for temporary buildings.

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 – Estimated Replacement Cost

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.

a. 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.

b. Building cost

The costs to be applied for the various building categories are set out in Appendix B1. The costs in Appendix B1 are exclusive of external works (Appendix B2) and Fees (Appendix B3Appendix B4 states the costs to be applied to special external features (for example specialised sports facilities).

c. Location adjustment

Where appropriate costs should be adjusted for location by reference to the Location Factors set down in the 2023 Rating Cost Guide and included at Appendix C1.

d. Contract Size Adjustment

Contract size adjustments should be made in accordance with Appendix C2 below.

e. Multi-storey allowances

The allowances set down in Appendix C3 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 – Age and Obsolescence

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 (non–industrial) 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. The main civic scale is applicable to main buildings within Categories 1 and 2 and is replicated at Appendix D (Table 1: Civic Buildings Obsolescence Allowances). Where exceptionally a building is of an industrial nature e.g. an external store or workshop then the industrial age and obsolescence scale should be applied in accordance with Appendix D (Table 2 – Industrial Buildings Obsolescence Table). For temporary buildings i.e. Category 3 Appendix D (Table 3 – Temporary Buildings Obsolescence Table) will apply.

The scales contained in Appendix D take into account the following salient points:

a. The age and obsolescence scales set out in the rating manual have been agreed to represent the combined age-related physical depreciation along with functional obsolescence and technological redundancy exhibited by buildings of each age typical for their quality/specification and condition. It is anticipated that the stated allowances will be adopted in the majority of cases and only either moderated or increased in exceptional circumstances.

b. Extensions are to be given an allowance appropriate to their age unless of a lower specification than would be expected of a building of that age in which case the allowance should be increased to a level appropriate to reflect the specification of the building as a whole.

c. In respect of physical depreciation, the above scales are intended to reflect normal wear and tear and/or deterioration due to the age of the building. The scales assume an average degree of cyclical refurbishment work will have been undertaken, to include whole or partial renewal of building sub-components, most particularly relating to mechanical and electrical services and internal fit-out, but also including periodic renewal of roof coverings and windows.

d. It follows from the above that no adjustment away from the scales is required in the majority of cases where older buildings have been subject to modernisation and refurbishment works, as these are explicitly assumed to have occurred. An exception to this would be for a building taken back to shell and reconstructed with significant renewal of structural elements, where an abatement of age-related physical obsolescence may be required.

e. An example of a building requiring an abatement of the allowances provided by the scales (due to the mitigation of physical depreciation) would be where a major renovation has occurred utilising the original building foundations, frame (including upper floors) but with comprehensive replacement of the external envelope (walls, windows), a complete internal refit and wholescale replacement of mechanical and electrical services.

f. Conversely, the above scales will be insufficient to reflect physical obsolescence in cases where buildings are substantially un-modernised and in any case, the scales do not apply in instances where the hereditament is not repairable at reasonable cost and where it falls to be valued rebus sic stantibus.

g. To qualify as a substantially un-modernised building it is expected that the building will predominantly have the following:

  • single glazed windows
  • original internal layout
  • original ceiling height, with no suspended ceilings
  • original external walls
  • pre 1980 internal finishes (flooring, ceiling and walls, internal doors and fixtures and fittings)

This is not intended to be applicable to prestige buildings that add character and esteem to the hereditament.

h. In respect of functional and technological obsolescence, for buildings that remain in operational use, the scales include adjustments to reflect functional and technological deficiencies observable in buildings typical of their original period of construction but taking account of the level of assumed cyclical refurbishment reflected in the physical depreciation element of the scales.

i. The type of functional and technological obsolescence factors already reflected in the scales include the following:

  • poor energy efficiency and/or environmental sustainability
  • inappropriate layout inhibiting flexible and efficient space utilization
  • modern health and safety, fire or building regulations that preclude or limit the original purposes of the building
  • dated design practices that restrict modern usage (such as lack of/or minimal floor and ceiling voids)
  • the absence of modern space heating or air conditioning systems within a building

j. It follows that only where buildings display specific functional deficiencies or issues of technological redundancy, that are atypical for their age, the age-related allowances provided by the scales should be increased.

k. One indicator that additional functional obsolescence is present such that the allowance provided by the scales should be adjusted is the presence of new and/or replacement facilities making the existing building surplus. Such replacement or other material redundancy should be considered and may result in the total redundancy of the pre-existing building, i.e. 100% obsolescence.

l. If at the Antecedent Valuation Date, where there are buildings, or parts of buildings, that through an established pattern of use have been unused for a number of years the area of these buildings, or parts of buildings, is to be excluded from the GIA.

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

4.4.1 Flat roof allowance

Permanent Category 1 and 2 buildings buildings built prior to 2005 with a flat roof are to receive an additional allowance. The allowance is not to be applied to temporary buildings, stores, workshops or garages.

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

    b) No allowance for flat roofs constructed from 2005 and onwards

  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 Valuation Unit before proceeding.

4.5 Stage 3 – Land Value

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

a. 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 E1.

b. 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 for example all-weather surfaces, tennis courts and open-air pools. Areas which are of no practical use (for example shelter belts and steeply sloping banks) should be ignored.

The value of undeveloped land is to be taken as the appropriate level for amenity land as stated in the 2023 land value practice note and set out in Appendix E2.

4.6 Stage 4 - De-capitalisation Rate

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 2023 Rating List

4.7 Stage 5 - End Adjustments

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 including age related build quality. ii. Location factor. iii. Multi-storey allowance iv. Flat Roof 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 Appendix 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 Appendix F will exceed 15%.

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

Specific allowances are to be given in respect of the following:

  • 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 Appendix 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 Appendix F allowances, or the Flat Roof allowances reach 15% the presence of non-reflected flat roofing or Appendix F allowance factors will extend the cumulative cap to 20%.

As was accepted in practice notes relating to previous revaluations, 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.

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 sqm the design size of the school should be found by deducting a total of 594 m2 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 250 m2 then the design size should be found by deducting a total of 250 m2 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 120 m2 in the case of infant schools or 140 m2 in the case of junior schools the design size should be found by deducting a total of 120 m2 /140 m2 and then adding the actual area of the hall(s). Where the numbers on roll exceed 420 deduct 20 sqm +0.3 m2 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:

  1. Crèches
  2. Nursery provision for 0 to 3-year olds and childcare provisions for out of school hours
  3. Adult learning and skills and centres for local authority learning such as staff training
  4. Specially resourced facilities such as a designated SEN or disabilities unit and pupil referral units
  5. Non-school facilities such as community library facilities or youth centres
  6. Accommodation for local authority designated support services, including peripatetic and support staff
  7. 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 2021. The best guide to this is provided by nationally collected statistics of pupil numbers for Spring 2021. 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 2021 actual. In general, this variation is unlikely to exceed 20%.

6.2 Pupil numbers can be accessed at L:/National Valuation Unit/ VP’s&CCTs/R2023/VP4 Civics/CCT Education 1/Local Authority Schools/Pupil Numbers for 2023 Revaluation. The statistics give 6th form pupil numbers separately for both English and Welsh Schools. Guidance on the use of the statistics is held in the same folder.

6.3 The Spring 2021 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 2021 may not give good guidance as to capacity requirements in individual schools in subsequent years. The Spring 2021 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, for example:

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 ENP 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 for example if a new secondary school were to open on the 1st September 2019 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 1 September 2022) Where the valuation date falls at some point during the filling process then the ENP adopted should be ascertained in the same manner by taking the ENP 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 m2) 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, 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 (for example 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 sqm.) 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 Areaper 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 age 16 and all-age/ through schools with 750 places or less than 300 11 to 16 year olds 1,270 m2 base area + additional 430 m2 where 6th form present Plus 7.1sqm per full time pupil key stage 3/4 (age 11 to 16) and 4.5 sqm per key stage 1/2 and nursery (age 3 to 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 m2 base + additional 430 m2 where 6th form present Plus 7.1sqm per full time pupil key stage 3/4 (age 11 to 16) and 4.5 sqm per key stage 1/2 andnursery (age 3 to 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 B1

Building costs

Building category (as defined in section 8) Cost per square metre (£/m2) GIA Cost Guide reference
School type Primary Middle/secondary  
Category 1 £2,100 £2,100 S031SF
Category 2 (dry) £1,279 £1,279 42AC02
Category 2 (wet) £2,643 £2,643 STD020
Category 3 (with w/c) £833 £833 42AC05
Category (without w/c) £728 £728 42AC04

Appendix B2

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 B3

The addition for fees

Fees should be added at the percentages shown in the VOA published Cost Guide at Section 7. For convenience these are shown below inclusive of the 2% complexity addition. Note that minimum fees may apply to counter inversion.

Size of Contract % Adjustment
Sums up to £750,000 14%
£750,000 to £1,499,000 13.5%
£1,500,000 to £3,999,999 11.5%
£4,000,000 to £7,499,999 10.5%
£7,500,000 to £14,999,999 9.5%
Over £15,000,000 9%

Appendix B4

Further additions for specific sports related external works

     
Description Cost Cost Guide reference
Open air swimming pools    
In ground £1,786/m2 water area 63Z00T
Over ground (prefabricated) £1,177/m2 water area 63Z00Y
Insulated corrugated plastic roofing over open air pools £428/m2 63Z00S
Hard surface sportsArea (tarmacadam) below 6,000m2 (Dedicated for sports-not playgrounds.) £50/m2 33U030
Hard surface sports Area (tarmacadam) above 6,000m2 (Dedicated for sports-not playgrounds.) £41/m2 33U025
All weather surfaces    
Astroturf £77/m2 STK020
3G playing surface £104/m2 STM020
Water based hockey pitches £125/m2 STL020
Crushed stone or “Redgra” playing surface £45/m2 33U010
Amenity grass areas £67,427/hectare 33U00B
Sports fields (grass) £71,422/hectare 33U00G
Tennis courts (hard) Depends on court number and specification. Select from Cost guide (costs include drainage and fencing). NB ‘40’ series code is only to be applied to courts of a higher specification as detailed in the 2023 Cost Guide. 53U30A, F or P and 53U40A, F, K or P
Tennis courts (grass) £36,746 per court. Add for fencing 33U00K. Fencing 33U2K5 or 33U2KA
Squash courts £1,403/m2 STS033
Running tracks    
6 lane synthetic £541,357 per track 63P00A
8 lane synthetic £736,236 per track 63P00C
8 lane hard porous water bound surface £412,803 per track 63P00E
2 lane synthetic (with 4 lane home) £233,135 per track 63P00L
Lighting    
AWP lighting columns Depends on specification. Select from Cost Guide 63P10A to 63P20P(tennis), and 63P10A to R (general per column)
Pitch flood lighting Hockey, football, rugby Hockey STJ020, Football STH020, Rugby STI020
Canopies £265-£558/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/m2 and should be DISREGARDED.    

Appendix C1

Location adjustment

N.B. The Regions referred to are administrative areas and are not significant boundaries.

NORTH EAST REGION NORTH WEST REGION
Durham County 0.91   Cheshire 0.97
Northumberland 0.95   Greater Manchester 0.97
Tees Valley 0.94   Lancashire 0.97
Tyne & Wear 0.91   Merseyside 0.97
      Cumbria 0.98
         
YORKSHIRE AND HUMBERSIDE REGION     SOUTH WESTERN REGION  
East Riding and North Lincolnshire 0.92   Cornwall 1.05
North Yorkshire 0.98   Devon 1.01
South Yorkshire 0.94   Dorset 1.04
West Yorkshire 0.92   Gloucestershire 1.03
      North Somerset 1.02
      Somerset 1.01
      Wiltshire 1.03
         
EAST MIDLANDS REGION     WEST MIDLANDS REGION  
Derbyshire 1.05   Herefordshire 0.92
Leicestershire and Rutland 1.04   Shropshire 0.95
Lincolnshire 1.03   Staffordshire 0.94
Northamptonshire 1.09   Warwickshire 0.98
Nottinghamshire 1.03   West Midlands 0.95
      Worcestershire 0.98
         
EAST OF ENGLAND REGION     SOUTH EAST REGION (EXCL. LONDON)  
Bedfordshire 1.04   Berkshire 1.08
Cambridgeshire 1.00   Buckinghamshire 1.07
Essex 1.03   East Sussex 1.09
Hertfordshire 1.07   Hampshire 1.05
Norfolk 0.96   Isle of Wight 1.05
Suffolk 0.97   Kent 1.09
      Oxfordshire 1.04
      Surrey 1.13
      West Sussex 1.08
WALES CENTRAL LONDON SOUTH
North Wales     Lambeth 1.28
Flintshire 0.89   Southwark 1.28
Conwy 0.93   Wandsworth 1.30
Denbighshire 0.90      
Gwynedd 0.97   GREATER LONDON NORTH EAST  
Isle of Anglesey 0.95   Hackney 1.25
Wrexham 0.91   Haringey 1.31
      Newham 1.18
Mid Wales     Tower Hamlets 1.26
Carmarthenshire 0.98   Barking and Dagenham 1.18
Ceredigion 0.99   Enfield 1.18
Powys 0.97   Havering 1.09
Pembrokeshire 0.92   Redbridge 1.15
      Waltham Forest 1.18
         
South Wales     GREATER LONDON NORTH WEST  
Blaenau Gwent 0.96   Barnet 1.23
Bridgend 0.93   Brent 1.22
Caerphilly 0.93   Ealing 1.27
Cardiff 0.94   Harrow 1.18
Monmouthshire 0.99   Hillingdon 1.16
Neath Port Talbot 0.88   Hounslow 1.16
Newport 0.95      
Rhondda, Cynon, Taff 0.93   GREATER LONDON SOUTH EAST  
Swansea 0.93   Bexley 1.25
Torfaen 0.91   Bromley 1.21
Vale of Glamorgan 0.97   Croydon 1.24
      Greenwich 1.24
CENTRAL LONDON NORTH     Lewisham 1.21
Camden 1.32      
City of London 1.24   GREATER LONDON SOUTH WEST  
Hammersmith and Fulham 1.32   Kingston Upon Thames 1.26
Islington 1.29   Merton 1.24
Kensington and Chelsea 1.34   Richmond Upon Thames 1.22
Westminster 1.30   Sutton 1.20

Appendix C2

Contract Size Adjustment

The adjustment for contract size should be made having regard to the total ERC (after adjustment for location but before the addition for fees) in accordance with the following scales:

ERC £ % Adjustment
Up to 0.25 million + 10% max
0.5 million 8%
0.75 million 6%
1.0 million 4%
1.5 million 3%
2.0 million 2%
3.0 million 1%
4.0 million 0%
5.0 million -0.5%
6.0 million -1%
8.0 million -1.5%
10.0 million -2%
15.0 million -3%
18.0 million -4%
20.0 million -5%
25.0 million -6%
35.0 million -9%
Over 40.0 million - 10% MAX
NB. Intermediate figures may be interpolated.  

Appendix C3

Multi-floor allowances

Number of storeys Allowance
1 to 2 Nil
3 5%
4 10%
5 storeys or more 15%

These allowances do not apply to schools situated in Central London (as defined in the land value practice note).

Appendix D

Age and obsolescence scales

Table 1: Civic Buildings Obsolescence Allowances

Age % Obsolescence Age % Obsolescence
2023 0.00% 1986 43.75%
2022 0.75% 1985 44.50%
2021 1.50% 1984 45.00%
2020 2.50% 1983 48.00%
2019 3.50% 1982 51.00%
2018 4.75% 1981 54.00%
2017 6.00% 1980 56.75%
2016 7.25% 1979 57.25%
2015 8.50% 1978 57.50%
2014 10.00% 1977 58.00%
2013 11.25% 1976 58.25%
2012 12.75% 1975 58.50%
2011 14.25% 1974 58.50%
2010 15.75% 1973 58.75%
2009 17.25% 1972 59.00%
2008 18.75% 1971 59.00%
2007 20.25% 1970 59.25%
2006 21.75% 1969 59.25%
2005 23.25% 1968 60.00%
2004 24.50% 1967 60.00%
2003 26.00% 1966 60.00%
2002 27.50% 1965 60.00%
2001 28.75% 1964 60.00%
2000 30.00% 1963 60.00%
1999 31.25% 1962 60.00%
1998 32.50% 1961 60.00%
1997 33.75% 1960 60.00%
1996 35.00% 1959 57.50%
1995 36.00% 1958 55.00%
1994 37.00% 1957 55.00%
1993 38.00% 1956 55.00%
1992 39.00% 1955 55%
1991 40.00% 1954 55%
1990 40.75% 1953 and earlier 55%
1989 41.50%    
1988 42.25%    
1987 43.00%    

Notes Applicable to Table 1

Category 2 Buildings (Swimming Pools)

  • The allowance for outdoor pools is capped at 50%.

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.

Table 2 – Industrial Buildings Obsolescence Table

Age % Obsolescence Age % Obsolescence
2023 0.00% 1994 24.00%
2022 0.50% 1993 25.00%
2021 1.00% 1992 26.00%
2020 1.50% 1991 27.00%
2019 2.00% 1990 28.00%
2018 2.50% 1989 29.00%
2017 3.00% 1988 30.00%
2016 3.50% 1987 31.00%
2015 4.00% 1986 32.00%
2014 4.50% 1985 33.00%
2013 5.00% 1984 34.00%
2012 6.00% 1983 35.00%
2011 7.00% 1982 36.00%
2010 8.00% 1981 37.00%
2009 9.00% 1980 38.00%
2008 10.00% 1979 39.00%
2007 11.00% 1978 40.00%
2006 12.00% 1977 41.00%
2005 13.00% 1976 42.00%
2004 14.00% 1975 43.00%
2003 15.00% 1974 44.00%
2002 16.00% 1973 45.00%
2001 17.00% 1972 46.00%
2000 18.00% 1971 47.00%
1999 19.00% 1970 48.00%
1998 20.00% 1969 49.00%
1997 21.00% 1968 and earlier 50.00% Max
1996 22.00%    
1995 23.00%    

Notes Applicable to Table 2

  1. As noted above, the scale of allowances commonly referred to as “the Monsanto scale” (derived from the approach determined in Monsanto v Farris (VO) 1998 RA 217) continue to be applicable to Industrial buildings.
  2. The scales refer to the actual age of the specific item. A notional age can be adopted where the item has undergone significant improvement or refurbishment.
  3. The scales do not provide for physical obsolescence alone. They also reflect the expected degree of functional and technical obsolescence for an asset of that age.
  4. Any extraordinary functional or technical obsolescence may result in an additional allowance being considered. Examples include superfluity for modern purposes or where new technology evidences that the actual asset is relatively inefficient. Where an additional allowance is made the reasons for it must be stated in the valuation notes.
  5. An element of risk of failure and the requirement of the tenant to replace the item at the end of its useful life is incorporated in the allowances.
  6. It should not be automatically assumed that because a property is old it merits an allowance. Age in itself is not a disability but rather what often flows from age.
  7. The scales are intended to provide a degree of uniformity of allowance. They should be regarded as the maximum allowances to be given.
  8. The scales should only be used as guidance in accordance with the principles outlined in the Rating Manual.
  9. Allowances in excess of 50% for buildings or P&M should only be adopted in exceptional circumstances. It is unlikely that many very old buildings exist which have not undergone some form of modernisation or refurbishment. Where a building or piece of plant has obviously not undergone refurbishment or modernisation at some stage it is permissible to give allowances up to a maximum of 65% as indicated in the scales (below).
  10. Allowances may be up to 50% higher from those shown in the scales for structures which are of a temporary nature and have continued in use well beyond their intended life span.
  11. It should not be assumed automatically that because an item of plant or machinery is old it merits an allowance. If an asset is well maintained the amount of use may well not affect the item or its value. However, with age the risk of breakdown is likely to increase and functional and technological obsolescence factors are likely to become prevalent. These factors must be borne in mind when selecting an appropriate obsolescence allowance.
  12. The scales of allowances therefore take into account the average use of items over a period of time, bearing in mind the physical, functional and technical obsolescence that may occur during the stated period.
  13. Where judgement through actual knowledge of the item is inconsistent with the allowance scales the item should be valued accordingly recording the reasons for the divergence from the scale.
  14. In any instance of variation from the scales in accordance with these instructions, the reasoning for this must be recorded in the valuation.

Table 3 - Temporary Buildings Obsolescence Table (Category 3 buildings)

Age % Obsolescence Age % Obsolescence
2023 0.00% 2002 31.50%
2022 1.50% 2001 33.00%
2021 3.00% 2000 34.50%
2020 4.50% 1999 36.00%
2019 6.00% 1998 37.50%
2018 7.50% 1997 39.00%
2017 9.00% 1996 40.50%
2016 10.50% 1995 42.00%
2015 12.00% 1994 43.50%
2014 13.50% 1993 45.00%
2013 15.00% 1992 46.50%
2012 16.50% 1991 48.00%
2011 18.00% 1990 49.50%
2010 19.50% 1989 51.00%
2009 21.00% 1988 52.50%
2008 22.50% 1987 54.00%
2007 24.00% 1986 55.50%
2006 25.50% 1985 57.00%
2005 27.00% 1984 58.50%
2004 28.50% 1983 and earlier 60.00% Max
2003 30.00%    

Appendix E1

Developed land value

Geographic location % ARC
Central London N 51.25%
Central London S 32.00%
GLNW 16.75%
GLSW 20.50%
GLNE 17.25%
GLSE 14.00%
North East 4.25%
North West 7.00%
Yorkshire and Humberside 7.25%
East Midlands 3.75%
West Midlands 6.75%
East of England 16.75%
South East 13.00%
South West 8.25%
Mid and North Wales 4.75%
South Wales 6.75%
Cardiff 19.00

The definitions of the areas referred to above can be found in the 2023 land value practice note.

Appendix E2

Undeveloped Land Value

Amenity land values to be use by region

Geographic Region £ per hectare (ha)
Central London N £250,000
Central London S £250,000
GLNW £200,000
GLSW £200,000
GLNE £200,000
GLSE £200,000
North East £50,000
North West £75,000
Yorkshire and Humberside £75,000
East Midlands £75,000
West Midlands £75,000
East of England £75,000
South East £100,000
South West £75,000
Mid & North Wales £35,000
South Wales (excl Cardiff) £35,000
Cardiff £40,000

Appendix F

End allowances with indicative maxima

Adjustment for: Remarks Allowance applied to Maximum allowance
Insufficient parking and/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 and 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 NVU for advice as necessary. Part reliant on other site (for example 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 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 and 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 Appendix F is capped at 15%.

Practice Note 1: 2017: Local Authority 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 BB103, the 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 DfE 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 A Group Pre-Challenge Review (GPCR) has been completed for the 2017 Rating List. The GPCR comprised of a consortium of agents including Wilks Head & Eve, Avison Young, Lambert Smith Hampton, Deloitte and Lancashire County Council.

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 Volume 4 Section 7 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 – Estimated Replacement Cost

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.

a. 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.

b. 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).

c. Location Adjustment

Where appropriate costs should be adjusted for location by reference to the Location Factors set down in the 2017 Rating Cost Guide and included at Appendix C1.

d. Contract Size Adjustment

Contract size adjustments should be made in accordance with Appendix C2 below.

e. Multi Storey Allowances

The allowances set down in Appendix C3 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 - Age & Obsolescence

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 (non–industrial) 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. The main civic scale is applicable to main buildings within Categories 1 & 2 and is replicated at Appendix D (Table 1: Civic Buildings Obsolescence Allowances). Where exceptionally a building is of an industrial nature e.g. an external store or workshop then the industrial age and obsolescence scale should be applied in accordance with Appendix D (Table 2 – Industrial Buildings Obsolescence Table). For temporary buildings i.e. Category 3 Appendix D (Table 3 – Temporary Buildings Obsolescence Table) will apply.

The scales contained in Appendix D take into account the following salient points:

a. The age and obsolescence scales set out in the rating manual have been agreed to represent the combined age-related physical depreciation along with functional obsolescence and technological redundancy exhibited by buildings of each age typical for their quality/specification and condition. It is anticipated that the stated allowances will be adopted in the majority of cases and only either moderated or increased in exceptional circumstances.

b. Extensions are to be given an allowance appropriate to their age unless of a lower specification than would be expected of a building of that age in which case the allowance should be increased to a level appropriate to reflect the specification of the building as a whole.

c. In respect of physical depreciation, the above scales are intended to reflect normal wear and tear and/or deterioration due to the age of the building. The scales assume an average degree of cyclical refurbishment work will have been undertaken, to include whole or partial renewal of building sub-components, most particularly relating to mechanical and electrical services and internal fit-out, but also including periodic renewal of roof coverings and windows.

d. It follows from the above that no adjustment away from the scales is required in the majority of cases where older buildings have been subject to modernisation and refurbishment works, as these are explicitly assumed to have occurred. An exception to this would be for a building taken back to shell and reconstructed with significant renewal of structural elements, where an abatement of age-related physical obsolescence may be required.

e. An example of a building requiring an abatement of the allowances provided by the scales (due to the mitigation of physical depreciation) would be where a major renovation has occurred utilising the original building foundations, frame (including upper floors) but with comprehensive replacement of the external envelope (walls, windows), a complete internal refit and wholescale replacement of mechanical and electrical services.

f. Conversely, the above scales will be insufficient to reflect physical obsolescence in cases where buildings are substantially un-modernised and in any case, the scales do not apply in instances where the hereditament is not repairable at reasonable cost and where it falls to be valued rebus sic stantibus.

g. To qualify as a substantially un-modernised building it is expected that the building will predominantly have the following:

  • single glazed windows
  • original internal layout
  • original ceiling height, with no suspended ceilings
  • original external walls
  • pre 1980 internal finishes (flooring, ceiling and walls, internal doors and fixtures and fittings)

This is not intended to be applicable to prestige buildings that add character and esteem to the hereditament.

h. In respect of functional and technological obsolescence, for buildings that remain in operational use, the scales include adjustments to reflect functional and technological deficiencies observable in buildings typical of their original period of construction but taking account of the level of assumed cyclical refurbishment reflected in the physical depreciation element of the scales.

i. The type of functional and technological obsolescence factors already reflected in the scales include the following:

  • poor energy efficiency and/or environmental sustainability
  • inappropriate layout inhibiting flexible and efficient space utilization
  • modern health and safety, fire or building regulations that preclude or limit the original purposes of the building
  • dated design practices that restrict modern usage (such as lack of/or minimal floor and ceiling voids)
  • the absence of modern space heating or air conditioning systems within a building

j. It follows that only where buildings display specific functional deficiencies or issues of technological redundancy, that are atypical for their age, the age-related allowances provided by the scales should be increased.

k. One indicator that additional functional obsolescence is present such that the allowance provided by the scales should be adjusted is the presence of new and/or replacement facilities making the existing building surplus. Such replacement or other material redundancy should be considered and may result in the total redundancy of the pre-existing building, i.e. 100% obsolescence.

l. If at the Antecedent Valuation Date, where there are buildings, or parts of buildings, that through an established pattern of use have been unused for a number of years the area of these buildings, or parts of buildings, is to be excluded from the GIA.

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

4.4.1 Flat roof allowance

Permanent Category 1 and 2 buildings with a flat roof are to receive an additional line entry allowance. The allowance is not to be applied to temporary buildings, stores, workshops or garages.

  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 Valuation Unit before proceeding.

4.5 Stage 3 – Land Value

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

a. 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 E1.

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.

b. 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 be taken as the appropriate level for amenity land as stated in the 2017 Land Value Practice Note and included below at Appendix E2.

4.6 Stage 4 – De-capitalisation Rate

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 Stage 5 – End Adjustments

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 including age related build quality.

(ii) Location factor.

(iii) Multi-storey allowance.

(iv) Flat Roof 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 Appendix 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 Appendix F will exceed 15%.

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

Specific allowances are to be given in respect of the following:

  • 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 Appendix 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 Appendix F allowances, or the Flat Roof allowances reach 15% the presence of non-reflected flat roofing or Appendix F 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 m2 the design size of the school should be found by deducting a total of 594 m2 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 m2 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 120 m2 in the case of infant schools or 140 m2 in the case of junior schools the design size should be found by deducting a total of 120 m2/140 m2 and then adding the actual area of the hall(s). Where the numbers on roll exceed 420 deduct 20 m2 +0.3 m2 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 0-3 year olds and childcare 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 1st September 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 m2) 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 m2) and stores should be costed separately.

Canopies – Permanent canopies should be costed 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 m2 base area

Plus 4.5 m2 per full time pupil

All Middle Schools with 90 pupils and above.

835 m2

Plus 7.1 m2 per full time pupil

All primary and middle schools with less than 90 pupils

Up to 40 pupils 94 m2

41 – 89 pupils Interpolate between space requirements for 40 pupils and 90 pupils

Plus 2.8 m2 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 m2 base area

Plus 7.1 m2 per full time pupil key stage 3/4 (age 11-16) and 4.5 m2 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 m2 per pupil over age 16

All age (all through) above 750 places or with more than 300 11 to 16 places

1,670 m2 base

Plus 7.1 m2 per full time pupil key stage 3/4 (age 11-16) and 4.5 m2 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 m2 per pupil over age 16

Appendix B 1

Building Costs

Building category (as defined in section 8)

Cost per square metre (£/m2) GIA

Cost Guide reference

School type

Primary

Middle/Secondary

Category 1

£1,650

£1,650

S031SF

Category 2 (dry)

£1,011

£1,011

42AC02

Category 2 (wet)

£2,089

£2,089

STD020

Category 3 (with w/c)

£709

£709

42AC05

Category (without w/c)

£619

£619

42AC04

Appendix B2

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 B3

The Addition for Fees

Fees should be added at the percentages shown in the VOA published Cost Guide at Section 7. For convenience these are shown below inclusive of the 2% complexity addition. Note that minimum fees may apply to counter inversion.

Size of Contract

% Adjustment

Minimum fee

Sums up to £750,000

14%

£750,000 to £1,499,000

13%

£105,000

£1,500,000 to £3,999,999

11.5%

£195,000

£4,000,000 to £7,499,999

10.5%

£460,000

£7,500,000 to £14,999,999

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 (prefabricated)

£1,000/m2 water area

63Z00Y

Insulated corrugated plastic roofing over open air pools

£364/m2

63Z00S

Hard surface sportsArea (tarmacadam) below 6,000m2

(Dedicated for sports-not playgrounds.)

£42/m2

33U030

Hard surface sportsArea (tarmacadam) above 6,000m2

(Dedicated for sports-not playgrounds.)

£30/m2

33U025

All weather surfaces

Astroturf

£65/m2

STK020

3G playing surface

£88/m2

STM020

Water based hockey pitches

£106/m2

STL020

Crushed stone or “Redgra” playing surface

£38/m2

33U010

Amenity grass areas

£56,828/hectare

33U00B

Sports fields (grass)

£60,195/hectare

33U00G

Tennis courts (hard)

Depends on court number and specification. Select from Cost guide (costs include drainage and fencing). NB '40' series code is only to be applied to courts of a higher specification as detailed in the 2017 Cost Guide.

53U30A, 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), and 63P10A to R (general per column)

Pitch flood 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/m2 and should be DISREGARDED.

Appendix C1

Location adjustment

N.B. The Regions referred to are administrative areas and are not significant boundaries.

NORTH EAST REGION

NORTH WEST REGION

Durham County

0.98

Cheshire

0.91

Northumberland

1.02

Greater Manchester

0.91

Tees Valley

1.01

Lancashire

0.91

Tyne & Wear

0.98

Merseyside

0.91

Cumbria

0.91

YORKSHIRE & HUMBERSIDE REGION

SOUTH WESTERN REGION

East Riding and North Lincolnshire

0.91

Cornwall

1.03

North Yorkshire

0.97

Devon

1.01

South Yorkshire

0.93

Dorset

1.03

West Yorkshire

0.91

Gloucestershire

1.02

North Somerset

1.01

Somerset

1.00

Wiltshire

1.02

EAST MIDLANDS REGION

WEST MIDLANDS REGION

Derbyshire

1.06

Herefordshire

0.91

Leicestershire and Rutland

1.04

Shropshire

0.93

Lincolnshire

1.05

Staffordshire

0.92

Northamptonshire

1.10

Warwickshire

0.96

Nottinghamshire

1.04

West Midlands

0.94

Worcestershire

0.96

EAST OF ENGLAND REGION

SOUTH EAST REGION (EXCL. LONDON)

Bedfordshire

1.03

Berkshire

1.12

Cambridgeshire

0.99

Buckinghamshire

1.11

Essex

1.04

East Sussex

1.14

Hertfordshire

1.07

Hampshire

1.09

Norfolk

0.96

Isle of Wight

1.08

Suffolk

0.98

Kent

1.13

Oxfordshire

1.08

Surrey

1.17

West Sussex

1.12

WALES

CENTRAL LONDON SOUTH

North Wales

Lambeth

1.17

Flintshire

0.90

Southwark

1.17

Conwy

0.94

Wandsworth

1.19

Denbighshire

0.91

Gwynedd

0.98

GREATER LONDON NORTH EAST

Isle of Anglesey

0.96

Hackney

1.15

Wrexham

0.93

Haringey

1.18

Newham

1.08

Mid Wales

Tower Hamlets

1.15

Carmarthenshire

0.98

Barking and Dagenham

1.06

Ceredigion

1.01

Enfield

1.08

Powys

0.99

Havering

0.98

Pembrokeshire

0.93

Redbridge

1.05

Waltham Forest

1.07

South Wales

GREATER LONDON NORTH WEST

Blaenau Gwent

0.97

Barnet

1.09

Bridgend

0.95

Brent

1.11

Caerphilly

0.95

Ealing

1.16

Cardiff

0.96

Harrow

1.06

Monmouthshire

1.01

Hillingdon

1.07

Neath Port Talbot

0.90

Hounslow

1.06

Newport

0.96

Rhondda, Cynon, Taff

0.94

GREATER LONDON SOUTH EAST

Swansea

0.94

Bexley

1.12

Torfaen

0.94

Bromley

1.09

Vale of Glamorgan

0.98

Croydon

1.12

Greenwich

1.13

CENTRAL LONDON NORTH

Lewisham

1.10

Camden

1.19

City of London

1.11

GREATER LONDON SOUTH WEST

Hammersmith & Fulham

1.18

Kingston Upon Thames

1.14

Islington

1.16

Merton

1.13

Kensington & Chelsea

1.23

Richmond Upon Thames

1.12

Westminster

1.19

Sutton

1.10

Appendix C2

Contract Size Adjustment

The adjustment for contract size should be made having regard to the total ERC (after adjustment for location but before the addition for fees) in accordance with the following scales:

ERC £

% Adjustment

Up to 0.25 million

+ 10% max

0.5 million

+ 8%

0.75 million

+6%

1.0 million

+4%

1.5 million

+2%

2.0 million

+1%

3.0 million

ZERO

4.0 million

-1%

5.0 million

-2%

7.0 million

-3%

10.0 million

-4%

15.0 million

-5%

18.0 million

-6%

20.0 million

-7%

25.0 million

-8%

35.0 million

-9%

Over 40.0 million

- 10.0% MAX

NB. Intermediate figures may be interpolated.

Appendix C3

Multi-floor allowances

Number 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%or Below 8th Floor 17.5%

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

Appendix D

Age and obsolescence scales

Table 1: Civic Buildings Obsolescence Allowances

Year of Building Completion

% Age and Obsolescence Allowance

Year of Building Completion

% Age and Obsolescence Allowance

2017

0.00%

1985

40.00%

2016

0.75%

1984

40.75%

2015

1.50%

1983

44.00%

2014

2.50%

1982

47.25%

2013

3.50%

1981

50.50%

2012

4.75%

1980

53.75%

2011

6.00%

1979

54.50%

2010

7.25%

1978

55.00%

2009

8.50%

1977

55.50%

2008

10.00%

1976

56.00%

2007

11.25%

1975

56.50%

2006

12.75%

1974

56.75%

2005

14.25%

1973

57.25%

2004

15.75%

1972

57.50%

2003

17.25%

1971

58.00%

2002

18.75%

1970

58.25%

2001

20.25%

1969

58.50%

2000

21.75%

1968

58.50%

1999

23.25%

1967

58.75%

1998

24.50%

1966

59.00%

1997

26.00%

1965

59.00%

1996

27.50%

1964

59.25%

1995

28.75%

1963

59.25%

1994

30.00%

1962

60.00%

1993

31.25%

1961

60.00%

1992

32.50%

1960

60.00%

1991

33.75%

1959

57.50%

1990

35.00%

1958

55.00%

1989

36.00%

1957

55.00%

1988

37.00%

1956

55.00%

1987

38.00%

1955 and earlier

55.00%

1986

39.00%

Notes Applicable to Table 1

Category 2 Buildings (Swimming Pools)

  • The allowance for outdoor pools is capped at 50%.

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.

Table 2 – Industrial Buildings Obsolescence Table

Year of Building Completion

% Age and Obsolescence Allowance

Year of Building Completion

% Age and Obsolescence Allowance

2017

0.00%

1985

27%

2016

0.50%

1984

28%

2015

1.00%

1983

29%

2014

1.50%

1982

30%

2013

2.00%

1981

31%

2012

2.50%

1980

32%

2011

3.00%

1979

33%

2010

3.50%

1978

34%

2009

4.00%

1977

35%

2008

4.50%

1976

36%

2007

5%

1975

37%

2006

6%

1974

38%

2005

7%

1973

39%

2004

8%

1972

40%

2003

9%

1971

41%

2002

10%

1970

42%

2001

11%

1969

43%

2000

12%

1968

44%

1999

13%

1967

45%

1998

14%

1966

46%

1997

15%

1965

47%

1996

16%

1964

48%

1995

17%

1963

49%

1994

18%

1962

50%

1993

19%

1961

50%

1992

20%

1960

50%

1991

21%

1959

50%

1990

22%

1958

50%

1989

23%

1957

50%

1988

24%

1956

50%

1987

25%

1955 and earlier

50%

1986

26%

Notes Applicable to Table 2

  1. As noted above, the scale of allowances commonly referred to as “the Monsanto scale” (derived from the approach determined in Monsanto v Farris (VO) 1998 RA 217) continue to be applicable to Industrial buildings.

  2. The scales refer to the actual age of the specific item. A notional age can be adopted where the item has undergone significant improvement or refurbishment.

  3. The scales do not provide for physical obsolescence alone. They also reflect the expected degree of functional and technical obsolescence for an asset of that age.

  4. Any extraordinary functional or technical obsolescence may result in an additional allowance being considered. Examples include superfluity for modern purposes or where new technology evidences that the actual asset is relatively inefficient. Where an additional allowance is made the reasons for it must be stated in the valuation notes.

  5. An element of risk of failure and the requirement of the tenant to replace the item at the end of its useful life is incorporated in the allowances.

  6. It should not be automatically assumed that because a property is old it merits an allowance. Age in itself is not a disability but rather what often flows from age.

  7. The scales are intended to provide a degree of uniformity of allowance. They should be regarded as the maximum allowances to be given.

  8. The scales should only be used as guidance in accordance with the principles outlined in the Rating Manual.

  9. Allowances in excess of 50% for buildings or P&M should only be adopted in exceptional circumstances. It is unlikely that many very old buildings exist which have not undergone some form of modernisation or refurbishment. Where a building or piece of plant has obviously not undergone refurbishment or modernisation at some stage it is permissible to give allowances up to a maximum of 65% as indicated in the scales (below).

  10. Allowances may be up to 50% higher from those shown in the scales for structures which are of a temporary nature and have continued in use well beyond their intended life span.

  11. It should not be assumed automatically that because an item of plant or machinery is old it merits an allowance. If an asset is well maintained the amount of use may well not affect the item or its value. However, with age the risk of breakdown is likely to increase and functional and technological obsolescence factors are likely to become prevalent. These factors must be borne in mind when selecting an appropriate obsolescence allowance.

  12. The scales of allowances therefore take into account the average use of items over a period of time, bearing in mind the physical, functional and technical obsolescence that may occur during the stated period.

  13. Where judgement through actual knowledge of the item is inconsistent with the allowance scales the item should be valued accordingly recording the reasons for the divergence from the scale.

  14. In any instance of variation from the scales in accordance with these instructions, the reasoning for this must be recorded in the valuation.

Table 3 - Temporary Buildings Obsolescence Table (Category 3 buildings)

Year of Building Completion

% Age and Obsolescence Allowance

Year of Building Completion

% Age and Obsolescence Allowance

Year of Building Completion

% Age and Obsolescence 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

1977

60.0

2004

19.5

1990

40.5

Pre 1977

By agreement

2003

21.0

1989

42.0

Appendix E1

Developed Land Value

Geographic Location

Urban % ARC

Rural % ARC

Central London N

81.50%

N/A

Central London S

35.00%

N/A

GLNW

12.75%

N/A

GLSW

40.00%

N/A

GLNE

19.00%

N/A

GLSE

23.50%

N/A

North East

3.75%

1.88%

North West

8.25%

4.13%

Yorkshire & Humberside

7.00%

3.50%

East Midlands

3.75%

1.88%

West Midlands

6.75%

3.38%

East of England

13.00%

6.50%

South East

12.50%

6.25%

South West

8.75%

4.38%

Mid & North Wales

5.75%

2.88%

South Wales

7.50%

3.75%

Cardiff

18.75%

9.38%

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

Appendix E2

Undeveloped Land Value

Amenity land values to be use by region

Geographic Region

£ per hectare (ha)

Central London N

£250,000

Central London S

£250,000

GLNW

£250,000

GLSW

£250,000

GLNE

£250,000

GLSE

£250,000

North East

£50,000

North West

£75,000

Yorkshire & Humberside

£75,000

East Midlands

£75,000

West Midlands

£75,000

East of England

£75,000

South East

£100,000

South West

£75,000

Mid & North Wales

£30,000

South Wales (excl Cardiff)

£35,000

Cardiff

£40,000

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 and/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 and 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 NVU for advice as necessary.

Part reliant on other site (for example 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 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 and 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 Paragraph 4.7 regarding Stage 5 Allowances.

The Total cumulative allowance for Appendix F is capped at 15% subject to the comments within paragraph 4.7 i.e. 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 Appendix F will exceed 15%.