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

Section 605: police stations and other police hereditaments

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

1. Scope

This instruction applies to all hereditaments occupied by Territorial Police Forces in England and Wales with the exception of police training colleges. In this respect the term police station should not be defined too narrowly but should be taken to include police headquarter buildings and training facilities (other than colleges).

2. List description and special category code

List description: police station and premises

Scat Code 215 Suffix G

3. Responsible Teams

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

4. Co-ordination

NSU Civics has overall responsibility for the co-ordination of this class. The team is responsible for the approach to and accuracy and consistency of valuations for police stations. The team will deliver practice notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating list. Caseworkers have a responsibility to:

  • follow the advice given at all times

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

  • seek advice from the co-ordination team should any issues arise that are not covered in this instruction.

Purpose built police stations 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 6 part 10 - paragraph 9.2 and appendix 1 thereof for further guidance on mode and category of use.

However, in some circumstances it may be appropriate to have regard to rental evidence derived from other modes or categories of use such as general office use, particularly where the hereditament might reasonably be described as “offices occupied by the police”– see para 8.1 below and Re. the Appeal of Reeves (VO) [2007] RA/74/2005.

6. Survey Requirements

6.1 Method of Measurement

Police stations may be valued by either the rentals method or by reference to the contractors basis. The basis of valuation will determine the method of measurement required: - Net Internal Area (NIA) in respect of the rentals method and Gross Internal Area (GIA) in respect of the contractors basis. It will be necessary to ascertain the basis of valuation prior to inspection but in case of doubt sufficient measurement and survey information should be recorded to enable valuations to be carried out using either basis.

6.2 Description

6.2.1 Hereditaments occupied by the 39 territorial police forces in England and the 4 in Wales are extremely varied in terms of construction , layout and size, characteristics which are largely dictated by their function.

6.2.2 The smallest police stations will cater for only limited public access, consisting of a reception area with enquiry desk and a small office with w/c and mess area but with no cells/custody suite. At the other extreme regional HQs will contain a full range of facilities which may include extensive offices, staff facilities, custody suites, identification parade facilities, victim examination suites, scene of crime suites, major incident facilities, training facilities , rifle ranges, garages, workshops of various types, stables, dog training or rearing facilities. Some of the more specialised facilities will normally be found as separate stand-alone hereditaments, these including purpose built custody suites

6.2.3 The majority of police hereditaments are purpose-built. Exceptions are stations housed in shop units. There are also a small number of police stations, which are known to have been physically adapted from office premises acquired on the open market. The considerable range of administrative work undertaken by police forces may in some cases lead to occupation of ordinary office hereditaments.

6.3 Requirements

a.Unit of assessment

Where co-located with other emergency services it is possible that unit of assessment issues may arise, particularly where some facilities are shared. In these circumstances the principles referred to in Rating Manual section 3 part 1 should be adhered to. In cases of difficulty advice from the NSU specialist should be obtained.

a.Survey detail

The following information is required

i.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

i.Method of construction - e.g. traditional brick and tile or steel framed.

i.Dimensions (where measured to NIA) and description of the accommodation i.e. offices, interview room, mess facilities, cell accommodation, rifle range etc. with details of internal finish, insulation, heating, lighting etc.

i.Where the contractors basis is to be the method of valuation only the GIA of individual building(s) is required unless there is a significant variation in the type of accommodation.

For example where a custody suite forms part of a building which otherwise consists of offices and staff accommodation a separate GIA will be required in respect of the custody suite. Likewise for such facilities as rifle ranges, garages, workshops, stables, dog training etc.

i.Description and detail of services to the hereditament e.g. heating, air conditioning, security systems (to include CCTV, barriers, gates and perimeter fencing), solar panels, wind turbines etc.

i.Number of car parking spaces for police vehicles, staff and visitors- or/and parking area, the nature of the surface, a note of the extent of site landscaping and, where present, helicopter landing area areas, skid pans and the like.

i.The site area with comment made whether the developed site is adequate or under or over sized for the building it serves. It is understood that the Home Office operates “a rule of thumb” whereby the required site area is approximately 129% of GIA, plus a further 25 sq m for each operational vehicle kept on site. It is understood however that many stations do not meet these requirements.

i.A description of the means of access to the highway and a note of the proximity to major trunk /arterial/ring roads.

i.Establish by enquiry the number of staff present on site.

7. Survey Capture

Survey information including plans are to be stored on EDRM. Where the police station is to be valued using the contractors basis the GIA of the building(s) is to be entered onto the valuation spreadsheet held on the non-bulk server (NBS). Where the police station is to be valued using the rentals method then data, utilising appropriate BCI and sub location codes, should be captured within RSA.

8. Valuation Approach

8.1 The rental method should be applied where there is (a) direct rental evidence or (b) rental evidence derived from the letting of other police stations or (c) there is sufficient evidence from other localities to establish that the rents relating to police stations are at a level commensurate with other modes or categories of use such as office uses. When considering rents relating to police stations care should be taken to ensure that they can be suitably adjusted to accord with the rating hypothesis and are not otherwise of a nature which may prejudice their evidential weight – for example, lettings between connected parties, sale and leaseback, etc.

8.2 It is possible that the tenant’s alternative to a traditional police station would be for operational and administrative duties to be located in buildings for which a rental market exists whilst custody and certain other specialised uses would be located in a centralised facility. In this scenario the application of the rentals method may be justified subject to the limitation in 8.2 below.

8.3 It is considered that the rentals method will only be appropriate in circumstances where the police station is in the nature of an office, has less than 10% of the GIA of the total area (excluding extensive garaging and other external ancillary accommodation not normally found at office accommodation) given over to cell/custody suite and has no other specialised facilities. Further guidance will be provided in the practice note applicable to the relevant Rating List.

8.4 Retail units used as police stations will fall to be assessed on the rentals method. As some examples of this type are known to be rented, it may be presumed that all examples may be valued by reference to retail tone unless evidence is available to demonstrate the rental value is at a different level for that particular use.

8.5 Where the rentals method is adopted it is not appropriate to make a deduction for sui-generis use as the premise of the basis of the valuation assumes that the hypothetical tenant is, in the alternative to renting the subject police station, willing and able to compete in the office market and that in the main the actual hereditament will more closely match the hypothetical tenants requirements.. However where a station no longer matches police requirements and suffers from disabilities of layout not associated with offices from which the rental base has been derived an end allowance should be considered.

8.6 In adopting rental levels drawn from office premises it should be noted that some police stations are located in prime areas purely by historic accident. In such instances location in peak areas may not be operationally essential. Where it is not, it will be appropriate to adopt rental levels found in other areas within which the police station might alternatively be located without any operational detriment.

8.7 Some police stations will include cells/custody suites which are disused or used for some purpose other than the holding of detainees, their function having been superseded by centralised facilities elsewhere. In these circumstances the accommodation should be valued accordingly. Where the use of cells/suites has changed since AVD, it is important to ascertain the operational reason for the change. In the majority of instances this will be as a consequence of a material change of circumstances in the locality e.g. the provision of replacement facilities elsewhere and in those circumstances it will be appropriate to reflect the lack of demand within the hereditament for custody accommodation. However if the change of use has arisen solely as a consequence of policy changes and/or a fall in arrest and detention rates post AVD, then the cell/custody suite should continue to be valued on the basis that a demand exists for its original purpose. Some Police Authorities despite having introduced centralised custody suites may have kept some cells operational in local police stations for weekend or emergency use only. Such accommodation should be treated as fully operational facilities

8.8 All other police stations should be assessed by reference to the contractors basis in accordance with Rating Manual section 4 part 3 and the practice note applicable to the relevant Rating List.

9. Valuation Support

Valuations on the rentals method are to be carried out on the Rating Support Application. Valuations undertaken using the contractors basis are to be carried out using the dedicated police station spreadsheet held on the non-bulk server (NBS).

Practice Note 1: 2017: Police stations

1. Market Appraisal

1.1 In September 2011, the Police Reform and Social Responsibility Bill received Royal Assent. This Act redefines the accountability of policing to the public, bringing about the dissolution of Police Authorities in England and Wales and introduced a Police and Crime Commissioner (PCC) to Police Forces. The role of the PCC is to hold the Chief Constable to account, set the annual precept and create a Police and Crime Plan for the area, whilst being answerable to the Police and Crime Panel for all aspects of local policing. Elections of PCCs took place 15 November 2012 and commenced business on 22 November 2012.

1.2 As with most publicly funded bodies police forces throughout England and Wales have had to respond to cuts in budgets arising from the austerity measures designed to tackle the deficit. This has impacted on all areas of policing including estates; resulting in closure and rationalisation of police stations, together with several examples of centralisation of services. There are also a number of stations which have been built as a move to running an estate which is fit for purpose and replacing old and outdated buildings. The move toward centralisation of custody facilities has continued with new suites being provided in several areas as forces seek to comply with the guidelines “Safer Detention and Handling of Persons in Police Custody (2012). Some suites are now primarily managed by private sector security specialists and this may have implications as regard the identification of the rateable occupier and the unit of assessment.

1.3 There have been discussions concerning the merger of some forces in an endeavour to cut costs but these have not progressed to fruition as at 1st April 2015, although innovative use of real estate such as the sharing of new facilities with other emergency services, magistrates’ courts and local authorities has evolved.

1.4 New facilities provided since 1st April 2008 include:-

Leeds District HQ, West Yorkshire Police HQ Wakefield, Carrgate Operational Centre Wakefield , specialist facility at Gateshead, Newcastle City Centre Police Station, Nexus House Ashton-under-Lyne, Durranhill, Greater Manchester Police HQ and Cardiff Bay. Examples of recently built specialist standalone custody suites include those at various locations in Norfolk and Suffolk and at Coventry,

2. Changes from the 2010 Practice Note

Police Stations are a sui generis class for rating purposes and, as previously, the choice of valuation method should be determined having established the facts on the ground. Where useful rental evidence exists on the subject property or within the class, or where the evidence supports the application of a generic basis of value such as that applied to offices in the locality a rentals approach should be adopted. Further guidance on the circumstances in which the adoption of the rentals method is appropriate is given in the Rating Manual. However It is considered that the rentals method was adopted too widely when assessing police facilities for the 2010 List and where the proportion of the total accommodation taken up by the custody suite exceeds that referred to in the Rating manual or other specialist facilities are present the contractors basis is to be applied.

3. Ratepayer Discussion

No discussions with the police forces or their representatives have taken place.

4. Valuation Scheme

4.1 Rentals Basis

Where the rentals method is adopted because the circumstances as outlined in the Rating Manual are present and the custody area is still operational, an addition should be made to the basic price per square metre in respect of the

Cell / Custody Area of £87.50m2 (Adjusted by a downward % according to the age of the facility to correspond with the age and obsolescence scale for the 2017 Rating List in Rating Manual section 4 part 3.)

This figure has been arrived at by de-capitalising the additional cost of constructing custody accommodation over that of main operational or admin areas. It is anticipated that most, if not all, valuations performed within RSA will require line entry factor adjustments to the custody suite/cell element to produce the required outcome. The quantum of the adjustment will depend upon the “main rate adopted” and the accommodation use code (AUC) utilised in the valuation.

It is not appropriate to value cell accommodation as storage space nor is it appropriate to add the addition referred to above to “storage values”

4.2 Contractors Basis

In circumstances where the contractors basis of valuation is deemed appropriate, it 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.

The costs shown in this section are for ease of reference. In all cases where a cost guide code is shown it is this that which 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 different costs to those shown in a current version of this practice note, please refer to the Class Co-ordination Team (CCT).

4.2.1 Stage 1 -Estimated Replacement Cost

Building Costs

With the exception of areas that are not used at the AVD and have no prospect of being used (principally redundant cells), the actual GIA of the station should be used to calculate the Estimated Replacement Cost (Stage 1) of the hereditament in accordance with Appendix A. Guidance in relation to the treatment of superfluity is given in the Rating Manual section relating to police stations at paragraph 8.6.

For the avoidance of doubt unless the hereditament concerned is a police training college it is not appropriate to cost the buildings by reference to costs relating to colleges of further education.

External Works

The cost of external works is to be added in accordance with Appendix B

Location factors

Location factors should be applied in accordance with the VOA Cost Guide 2017

Professional Fees and Charges

Professional fees and charges are to be added for in accordance with the guidance given in the 2017 Cost Guide

4.2.2 Stage 2 –Age and Obsolescence

Adjustments for age and obsolescence should be made in accordance with the scales contained in RM section 4 part 3.

  • In the case of buildings that have been significantly refurbished a lower allowance than that indicated solely by reference to the building’s age in the scale may be applicable, particularly where the works undertaken have enabled internal re-modelling to improve the functional aspects of the police station

  • In all cases the actual age of the building is to be recorded for the purposes of determining the appropriate age and obsolescence allowance. When refurbishment has taken place the allowance and not the buildings age should be over written

  • The age and obsolescence allowance applied to the buildings should also be applied to the external works (averaged as necessary). The spreadsheet in the Non Bulk server application will automatically do this.

4.3 Stage 3-Land Value

The value of the developed land should be added in accordance with Appendix C

4.4 Stage 4- De-capitalisation rate

Generally the higher statutory de-capitalisation rate should be applied to the Effective Capital Value (ECV) to arrive at an annual equivalent, however there are some training facilities which may fall within the definition of educational hereditament within the meaning of The Non-Domestic Rating (Miscellaneous Provisions) (No. 2) Regulations 1989 and where they do so the lower rate is to be applied. In cases of doubt advice should be sought from the appropriate technical advisor in NSU.

4.5 Stage 5- End Adjustments

4.5.1 Any advantage or disadvantage which might affect the value of the occupation of the hereditament as a whole should be reflected at this last stage. An adjustment under this head should not duplicate adjustments made elsewhere. Most hereditaments will not warrant further allowances at this stage and where allowances are appropriate, it is expected that they should not normally exceed 15%.

4.5.2 Specific End Adjustment

Buildings with a flat roof are to receive an end allowance

  • 80m2 ARC of the footprint of the flat roof for buildings constructed up to and including 2004.

  • 60m2 ARC of the footprint of the flat roof for buildings constructed after 2004.

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

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

Rating Manual section 6 part 3: Section 605: Police Stations: Practice Note: 2017

Appendix A

Stage 1 Building Costs

ITEM COST GUIDE REF COST REMARKS
Police Stations up to 2000m2 GIA 63A00B £1790/m2 Excluding Specialist facilities and custody suites
Police Stations over 2000 m2 GIA   £1700/m2 Excluding Specialist facilities and custody suites
Divisional and Regional HQ 63A00C £1650 to £2400/m2 See note 1 below
Custody suites 63A00D £3540/m2  
Garages/workshops   £760/m2  
Vehicle examination facilities 63A00J       63A00G £1130/m2   £900/m2 Up to 500m2 500m2 to 2000m2
Rifle ranges 63A00H £1800/m2  
Stables 63A00L   £890/m2  
Kennels   £1285/m2  

Note 1

Divisional and regional HQ hereditaments may consist of a number of buildings either dedicated to a particular purpose or designed to accommodate different uses. In these circumstances the different buildings/parts of buildings should be cost separately. However the overall value when expressed at a £/m2 should fall within the parameters above. Those HQs which consist of principally office accommodation will be toward the bottom of the range and those at the top will incorporate specialised facilities such as custody suites, rifle ranges, incident training facilities etc. The figure in the cost guide is a mean figure and should not be applied unless appropriate.

Note 2

Solar panels and wind turbines should be added for at the appropriate figure as given in the cost guide. In the case of solar panels the cost will vary between £1100 and £1400 per KW capacity dependent upon the size of the installation. Wind turbines will be cost at between £25,000 and £220,000 dependent upon output.

Note 3

Where external sports facilities are present at Regional HQs they are to be cost in accordance with the guidance in the 2017 VO Cost Guide.

**Rating Manual section 6 part 3: Section 605: Police Stations: Practice Note: 2017 **

Appendix B

Stage 1 The Addition for External Works

External Works.

An addition for external works will be made within the range of 5-35%. The following percentages would typically apply but are not intended to be prescriptive;

Police stations (to 5000m2 GIA in size) Description     Addition
A site with almost 100% site coverage, will typically apply to central area sites with minimal ext. wks. 7.5%
A site with adequate car parking spaces for police vehicles and some staff/public parking but limited amount of landscaping. 15%
An extensive site with adequate car parking for police vehicles, staff and visitors and extensive landscaping. Description 35%

Police stations, (above 5000m2 in size)

A site with almost 100% site coverage, will typically apply to central area sites with minimal ext. wks.  5.0%
A site with adequate car parking spaces for police vehicles and some staff/public parking but limited amount of landscaping. 10%
An extensive site with adequate car parking for police vehicles, staff and visitors and extensive landscaping.   20%

Notes -

1) External works are inclusive of external CCTV , fencing, security barriers, all hard standing

and landscaped areas

2) Where multi-storey car parks are present they are to be added for separately and an appropriate adjustment made to the external works addition.

Rating Manual section 6 part 3: Section 605: Police Stations: Practice Note: 2017

Appendix C

Stage 3 Land Value Addition

Land value is to be arrived at by having regard to values prevailing in the locality, in accordance with Rating Manual section 4 part 3 and the 2017 Land Value Practice Note

  • It is anticipated that developed land values will be generally based on industrial values in the locality

  • Undevelopeded land is to be taken at the amenity value in the locality

In this context developed land shall be taken to be the land upon which any building is situated, hard standing, artificial sports pitches and landscaping surrounding the buildings. Undeveloped land will consist of playing fields, open grass land, tree shelter belts etc.

Practice Note 1: 2010: Police stations

1. Co-ordination Arrangements:

This is a Group Class and responsible for co-ordination is detailed in Rating Manual section 6 part 1: practice note 1: 2005.

The 2005 Special Category Codes for Police Stations is 931. As a Group class the appropriate suffix letter is ‘G’.

2. Background:

From enquiries and discussions during the course of the 2005 Rating List, it has become clear that many Police Forces are working towards a policy of providing a point of presence in easily accessible locations for the public, with a view to moving custody and other specialised functions which are not so locationally sensitive to centralised facilities.

It is recognised however that some forces are well down this route, some are merely just beginning to implement such changes whilst others may still be very much at the planning stage. Consequently in some Police Authority areas there maybe as few as 3 designated large, purpose built custody suites while in others there maybe numerous custody suites often forming part of older centrally located police stations. In some older stations there may be cells which were not in use at the AVD, or which subsequently became disused with the completion of new detention facilities on-site or elsewhere; such cells add no value to the hereditament.

3. Valuation Method:

As this sector is in flux between the traditional type of policing structure that previous Practice Notes have referred and this new structure, and there is no consistent level of implementation between forces. This poses a significant problem when advising on the valuation approach to be adopted.

Previous Guidance on the Contractors Method for this class was by reference to the Equivalent Substitute building. For the 2010 List it is possible that the tenant’s alternative to a Traditional Police Station would be for operational and administrative duties to be located in buildings for which a rental market exists whilst custody and certain other specialised uses would be located in a centralised facility.

However, whilst custody exists within a Hereditament, it is correct that we should reflect the specialised nature and cost of these areas.

This property is valued using the non-bulk server. The manual can be accessed here.

4. Rental Basis:

For the 2010 List, given the considerations above, traditional Police Stations are to be valued by reference to local office tone for the Operational and Administrative accommodation.

In adopting rental levels drawn from office premises it should be noted that some police stations are located in prime areas purely by historic accident. In such instances location in peak areas may not be operationally essential. Where it is not, it will be appropriate to adopt rental levels found in other areas within which the police station might alternatively be located without any operational detriment.

Some police stations will include cells/custody suites which are disused or used for some other purpose than the holding of detainees, their function having been superseded by centralised facilities elsewhere. In these circumstances the accommodation should be valued accordingly. Where the use of cells/suites has changed since AVD, it is important to ascertain the operational reason for the change. In the majority of instances this will be as a consequence of a material change of circumstances in the locality e.g. the provision of replacement facilities elsewhere and in those circumstances it will be appropriate to reflect the lack of demand within the hereditament for custody accommodation. However if the change of use has arisen solely as a consequence of policy changes and/ or a fall in arrest and detention rates post AVD, then the cell/custody suite should continue to be valued on the basis that a demand exists for its original purpose. Some Police Authorities despite having introduced centralised custody suites may have kept some cells operational in local police stations for weekend or emergency use only. Such accommodation should be treated as fully operational facilities.

Where the custody area is still operational, an addition should be made to the basic price per square metre of

Cell / Custody Area Addition of £ 25 /m2

This figure has been arrived at by recapitalising the additional cost of constructing Custody Accommodation over that of main operational or admin areas. It is anticipated that most, if not all, valuations performed within RSA will require line entry adjustments to the custody suite/cell element to produce the required outcome. The quantum of the adjustment will depend upon the “main rate adopted” and the accommodation use code (AUC) utilised in the valuation.

5. Contractors Basis.

For the 2010 Rating List this method should only be used for stand alone specialised police hereditaments for which no evidence of Rental Value exists.

This would typically include the Centralised Custody Suites referred to earlier in this practice note.

For Advice on the valuation of these hereditaments please see Appendix 1 to this practice note.

Practice Note 1: 2010: R2010: Police stations: Appendix 1 – Specialist buildings

1 Application.

The following guidance relates valuation on the contractors basis and should only be used for specialist stand alone hereditaments for which no evidence of rental value exists.

2.1 Stage 1 – Estimated Replacement Cost.

With the exception of areas that are patently not used and have no prospect of being used, the GIA of the specialist building should be used to calculate the Estimated Replacement Cost (Stage 1) of the building by applying the building costs in accordance with the table below :

The following costs are recommended, where recent actual costs are not available:

Freestanding Custody Suites £1825 - £1975 per sq m GIA
Garages/workshops £690 per sq m GIA
Vehicle examination facilities £900 per sq m GIA
Rifle ranges £1725 per sq m GIA
Stables £850 per sq m GIA
Kennels £1235 per sq m GIA

External Works.

An addition for external works will be made within the range of 5% - 15%. The following percentages would typically apply but are not intended to be prescriptive;

Description Addition
A site with almost 100% site coverage, will typically apply to central area sites with minimal ext. wks. 5%
A site with limited car parking spaces for staff/public minimal amount of landscaping. 7.5%
An extensive site with adequate car parking and sufficient landscaping. 15%

Contract Size & Location Adjustments.

Contract size adjustments should be made, and location factors applied in respect of this class in accordance with the scales in the cost guide.

Fees

General guidance on the amount to be added for fees is provided in the R2005 Cost Guide.

For Specialised Police Buildings a range of 13% to 15% will be appropriate. The lower end of this range will apply to more basic types, increasing with complexity up to the maximum.

2.2 Stage 2 – Age & Obsolescence

The standard age-related allowances scale contained in the R2010 Cost Guide should be applied in most circumstances. However, in the case of buildings that have been significantly refurbished a lower allowance may be applicable.

The same age related allowance scale applied to the buildings should also be applied to the external works.

2.3 Stage 3 - Land Value

Land value should be arrived at by having regard to values prevailing in the locality, in accordance with Rating Manual section 4 part 3. A reduction of up to 20% from the prevailing land use value may be appropriate to reflect the mode and category of use, but this need not be made where there is evidence of land being acquired at the full value for the prevailing use in the area.

With regard to land being acquired at full prevailing use value, it is understood that most new police buildings are built under the government’s PFI initiative, and as such by the time the land is to be acquired, details of the project are usually in the public domain. As a result land owners would usually press for a higher price and the hypothetical tenant would expect to have to pay at least the market value for prevailing use. This practice should not be used to justify a level in excess of prevailing use but where such evidence exists, any abatement from prevailing use value should be resisted.

2.4 Stage 4 - Decapitalisation Rate

The Adjusted Replacement Cost (ARC) of the hereditament shall be decapitalised to an annual equivalent by taking the prescribed rate. The prescribed rate may be different in England and Wales.

2.5 Stage 5 – End Adjustments

Any advantage or disadvantage, which might affect the value of the occupation of the hereditament as a whole should be reflected at this stage. An adjustment under this head should not duplicate adjustments made elsewhere.

3. I.T. Support.

Where the Contractors basis is appropriate the standard generic Contractors Spreadsheet should be used. A master copy of which is located in the R-Drive. All such valuations will be downloaded into the new non-bulk server. See IAs 100903 & 140503 for further details

Practice Note 2: 2010: R2010: Police training colleges

1 Application.

The following guidance relates to the valuation of Police Training Colleges only and for all other types of Police Occupation reference should be made to Practice Note 1.

2 Method of Valuation.

The recommended method of valuation for stand alone police training colleges is the Contractors Method.

Most Police Training Colleges will have accommodation that is comparable to Colleges of Further Education. And for guidance on the levels of value to be adopted caseworkers are referred to the Colleges of Further Education Practice Note.

For those Police Training Colleges where all or part of the hereditament are of a significantly higher standard than accommodation found in Colleges of Further Education, it may be appropriate to adopt University levels of value for those parts.

This property is valued using the non-bulk server. The manual can be accessed here.

3 Decapitalisation Rate

The Adjusted Replacement Cost (ARC) of the hereditament arrived at in accordance with s.2 above shall be decapitalised to an annual equivalent by taking the prescribed educational decap.rate.

However valuers should exercise caution as some Police Training Colleges may be co-located with Headquarter Buildings or other non-educational uses. Where under the established principles of rating this forms one hereditament, it will be necessary to ascertain whether the educational decap rate is appropriate having regards to the proportions of educational vs non-educational use.

4. I.T. Support.

Where the Contractors basis is appropriate the standard generic Contractors Spreadsheet should be used, a master copy of which is located in the R-Drive. All such valuations will be downloaded into the new non-bulk server. See IAs 100903 & 140503 for further details

Practice note 1: 2005: Police stations

1. Co-ordination Arrangements.

This is a Group Class and responsible for co-ordination is detailed in Rating Manual Section 6: Part 1

The 2005 Special Category Codes for Police Stations is 931. As a Group class the appropriate suffix letter is ‘G’.

2. The Choice of Valuation Method.

For guidance on the appropriate choice of valuation method see Rating Manual Section 605.

3. Rental Basis.

In some cases police authorities will occupy buildings for uses for which there is an established rental market, or may actually rent buildings for specialised uses. In such cases, where actual rental evidence is available to suggests that they have paid the market rate to occupy the building, then the appropriate method will be by reference to market rentals. Examples of this are :-

3.1 Retail premises used as police stations.

3.2 Office premises used purely for administrative purposes by civilian staff and not as a base for operational policing. In such cases the description applied to the hereditament should be “offices and premises” and the remainder of the guidance in this Practice Note does not apply to such hereditaments.

4. Contractors Basis.

4.1 Stage 1 – Estimated Replacement Cost.

With the exception of areas that are patently not used and have no prospect of being used, the GIA of the police station should be used to calculate the Estimated Replacement Cost (Stage 1) of the building by applying the building costs in accordance with the table in Appendix 1.

It is understood that the shift towards Contractors Basis as the preferred method of valuation for this class, may cause operational difficulties where properties have been surveyed to NIA. To assist the Home Office Design Guide and actual modern stations have been considered to derive a conversion factor of 1.35 from NIA to GIA. It must be noted that this is only general guidance to facilitate revaluation. It should under no circumstances be taken in preference to actual areas which should be established as soon as is reasonably practicable and in any event prior to negotiation of any appeal.

External Works.

An addition for external works will be made in the case of police stations within the range of 5% - 15%. The following percentages would typically apply but are not intended to be prescriptive;

Description Addition
A site with almost 100% site coverage, will typically apply to sub-station or town centre sites with minimal ext. wks. 5%
A site with limited car parking spaces for staff/public minimal amount of landscaping. 7.5%
A main police station site with adequate car parking and sufficient landscaping. 5%

Aerials & Masts

Where Aerials or Masts exist, regard should be had to cost additions outlined in the relevant section of the VO cost guide.

Contract Size & Location Adjustments.

Contract size adjustments should be made, and location factors applied in respect of this class in accordance with the scales in the cost guide.

Fees

General guidance on the amount to be added for fees is provided in the R2005 Cost Guide.

For Police Stations a range of 13% to 15% will be appropriate. The lower end of this range will apply to most basic types, increasing with complexity up to the maximum.

4.2 Stage 2 – Age & Obsolescence

The standard age-related allowances scale contained in the R2005 Cost Guide should be applied in most circumstances. However, in the case of buildings that have been significantly refurbished a lower allowance may be applicable, particularly where the works undertaken have enabled internal re-modelling to improve the functional aspects of the police station.

The same age related allowance scale applied to the buildings should also be applied to the external works.

4.3 Stage 3 - Land Value

Land value should be arrived at by having regard to values prevailing in the locality, in accordance with Rating Manual section 4 part 3. A reduction of up to 20% from the prevailing land use value may be appropriate to reflect the mode and category of use, but this need not be made where there is evidence of land being acquired at the full value for the prevailing use in the area.

With regard to land being acquired at full prevailing use value, it is understood that most new stations are built under the government’s PFI initiative, and as such by the time the land is to be acquired, details of the project are usually in the public domain. As a result land owners would usually press for a higher price and the hypothetical tenant would expect to have to pay at least the market value for prevailing use. This practice should not be used to justify a level in excess of prevailing use but where such evidence exists, any abatement from prevailing use value should be resisted.

With regard to many central police stations, these are ‘civic pride’ buildings and it may be unlikely that the hypothetical tenant would realistically envisage relocating to a fringe urban site. One function of police stations is to provide facilities for reporting by bailed defendants and as such there will need to be at least one centrally located and easily accessible station per major centre of population. Land values per hectare to be adopted for central area locations should be selected having regard to the land values adopted by SRUs for the valuation on Courts, and these should in turn be informed by EUVs adopted in asset valuations of Courts. In smaller towns it may often be found that an operationally adequate site could be selected from an industrial area, and in such cases industrial land value should be used. Residential land values (abated by up to 20%) should be adopted for police stations in residential areas where no alternative cheaper industrial site would be operationally viable. As stated in the relevant Rating Manual Section (at 3.2), the land requirements in the Home Office Guide is generous at 129% of GIA plus allowances for each operational vehicle. Therefore it is unlikely that a site will be excessive in size. However, where this is the case, reasonable assumptions should be made to arrive at an appropriate substitute area given the Home Office Guidance. Conversely, where a site area is restricted in size, only the actual area should be valued, but to avoid double counting, regard should be had to this fact when considering whether any further allowance at stage 5 is warranted.

4.4 Stage 4 - Decapitalisation Rate

The Adjusted Replacement Cost (ARC) of the hereditament shall be decapitalised to an annual equivalent by taking the prescribed rate.

4.5 Stage 5 – End Adjustments

Any advantage or disadvantage, which might affect the value of the occupation of the hereditament as a whole should be reflected at this stage. An adjustment under this head should not duplicate adjustments made elsewhere.

5. I.T. Support.

Where the Contractors basis is appropriate the standard generic Contractors Spreadsheet should be used. A master copy of which is located in the R-Drive. All such valuations will be downloaded into the new non-bulk server see IA’s 100903 & 140503 for further details.

Practice note 1: 2005: Appendix 1: Police stations

Cost Guidance

Main accommodation in police stations £1175 per sq m GIA

Where a police station has no custody suite, this may be reduced to £1075 per sq m GIA

Freestanding custody suites and “bridewells” £1430 per sq m GIA

The following costs are recommended for other buildings which may be present:

Garages/workshops £540 per sq m GIA
Vehicle examination facilities £705 per sq m GIA
Rifle ranges £1345 per sq m GIA
Stables £665 per sq m GIA
Kennels £965 per sq m GIA