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

Section 610: maltings

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

1. Scope

1.1 This section applies to purpose built sites which produce malted food products for the food and drinks industries. It embraces Traditional & None Traditional Maltings.

1.2 Traditional Maltings

The traditional way to make malt was in a floor malting. After the grain had been soaked in water sufficiently to start germination, the growing grain was spread out on large floor areas. The depth of grain on the floor was thickened or thinned to control the temperature of the growing grain. Germinating grain produces heat, so this had to be dissipated by turning or raking the grain. When the malt was sufficiently modified it was kilned in tall cone shaped structures to produce a natural air draught through the drying malt. Traditional malt kilns were very energy intensive. The properties whilst often distinctive are effectively large open floors and a conventional rental based valuation can be adopted.

1.3 Non Traditional Maltings

In the 1960’s the process became more industrialised and automated and Maltings became more specialist in design. Saladin Maltings and Wanderhaufen Street feature large concrete germinating and kilning vessels and produce malt in larger batches traditionally with honeycomb concrete storage silos.

By the 1980s the nature of sites had evolved further. Germinating and kilning now predominantly occurs in large stainless steel vessels (GKV) with galvanised steel bins for storage. Due to the nature of Non Traditional Maltings these are valued on a full contractor’s basis of valuation and are the responsibility of the NSU Industrial Team.

2. List Description and Special Category Code

2.1 Traditional Maltings List description: Malting and Premises IX SCAT code: 163S

2.2 Non Traditional Maltings List description: Malting and Premises IX SCAT code: 162V.

3. Responsible Teams

3.1 Responsibility for the valuation and referencing of this class of property is split as follows:

  • Traditional Maltings (valued on the Rental/Comparison method) are dealt with by specialists within the NDR Business Units.

  • Non Traditional Maltings are dealt with by the Industrial and Crown Team within the National Specialists’ Unit (NSU).

4. Co-ordination

4.1 The Class Co-ordination Team and the Industrial Valuation Panel have responsibility for this class ensuring effective co-ordination across the NSU and NDR Units. The team are responsible for the approach to and accuracy and consistency of valuations. The team will deliver Practice Notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating list. Caseworkers have a responsibility to:

  • follow the advice given at all times

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

4.2 Traditional Maltings:

The class has reduced in number and significance over the last 20 years and a maximum of five sites still exist. Co-ordination since 2010 Revaluation has rested with those Specialist Rating Teams that deal with the limited number of properties that remain.

4.3 Non Traditional Maltings:

Responsibility for ensuring effective co-ordination lies with the NSU. There are currently 14 Non Traditional Maltings in England. The SAA also have a significant Malting industry and the valuation approach is liaised via the NSU industrial Team with the Scottish Assessors Association.

5.1 There are no particular issues known affecting the English industry nor has there been any recent litigation affecting the valuation approaches.

6. Survey Requirements

6.1 Basis of measurement for Maltings is GIA.

6.2 Safety on Site

  • Caseworkers visiting this type of property for an inspection or other reason should wear the appropriate PSE, and ensure they are aware of all the VOA guidelines on health and safety. Minimum requirement: - safety boots and glasses, high viz clothing and hard hat.

  • Sites will have a formal health and safety induction process, this must be undertaken and allowed for when fixing appointments. Individuals should comply with all safety rules and precautions prescribed by the site operator without exception.

  • In particular, it is important to maintain very high levels of awareness - be alert for the risk of trips and falls; never touch exposed pipes or other elements of production equipment particularly those with moving parts such as conveyors.

6.3 Plant and Machinery

6.3.1 See Rating Manual section 6 part 5 for general advice on identification of rateable plant and machinery forming part of the hereditament. Rateable plant and machinery is identified in accordance with the provisions of SI 2000 No. 540 in England and SI 2000 No. 1097 (W.75) in Wales.

6.3.2 Small traditional Maltings are unlikely to feature significant elements of plant and machinery. Larger sites may have pits (VOCG pit calculator), elevators (211E0 series), structural steelwork (3050B series), and silos (4356 Series if flat bottomed, 4358 Series if hopper bottomed). Kilns in the nature of buildings will be rateable regardless of size. For Class 4 Table 4 items the exceptions should be considered.

6.4 Traditional Maltings

The malting process consists of the germination of barley under controlled conditions and the subsequent roasting of the germinated grain in a kiln.

The stages in the process : -

(i) Intake and Storage

When the barley is delivered to the malting it may require drying and cleaning. Old maltings may use batch-drying systems, newer maltings use continuous drying. Drying capacity is referred to as so many tonnes per hour and moisture reduction from 22% to 12%. After drying the barley is put into storage in silos, which mostly fall into two categories.

a. Concrete silos (built up to the 1960’s)

b. Steel maxi bins and flat stores.

More recently the storage of barley and malt has moved away from rectangular steel bins and concrete silos towards large circular steel bins. Barley is generally stored in large flat bottomed silos with a capacity of 2,500 to 3,000 tonnes and/or flat stores which are a light industrial type building with distribution and reclamation systems. Malt tends to be in hopper bottomed silos.

Barley storage facilities can vary significantly from site to site so a direct comparison between Rateable Value and output can be misleading. Storage facilities may form a significant element of the total cost.

(ii) Steeping

The dried barley is conveyed from storage to the steeping vessels as required. In traditional maltings the steeping vessels were rectangular tanks on each floor where the barley was soaked for 60 - 84 hours. Modern steeping vessels are flat-bottomed circular steel tanks, which may be epoxy, lined and equipped with aeration and ventilation fans together with facilities for heating the steep water.

(iii) Germination (Flooring)

Water is drained from the steeps and in the old type of malting the grain was merely shovelled out of the steeping vessel on to the floor and allowed to germinate.

As germination takes place each grain produces rootlets. Heat is also produced by the respiration of the growing seed and therefore the temperature has to be controlled either by hand turning of the grains or by mechanical turning which is more common today.

Germination in a traditional malting used to take 8 - 20 days but by using modern methods that time may be reduced to about 4 days.

In more modern systems germination takes place in either boxes or drums. Most modern and high volume production occurs in large single or double decked vessels using fan assisted aeration of the grain. These are known as GKV (Germinating & Kilning Vessels).

(iv) Kilning

In traditional maltings after germination the grain is loaded on to the kiln floor where it is exposed to gradually increasing temperatures and is at the same time turned occasionally. In the initial stages the grain is dried but as the temperature increases curing takes place and this gives the malt its flavour.

The older kilns consist of a lower storey containing the furnace which may be solid fuel, natural gas or oil fired, a kiln floor of perforated tiles or suspended wires and a roof which may be pyramidical or conical to give easy passage to heated air. A chimney or ventilator may further facilitate the flow of air.

The grain used to be about 8 in (0.2 metres) deep on the floor of a traditional kiln but nowadays depths of up to 45 in (1.14 metres) are frequently encountered in modern kilns with automatic turning and stripping facilities.

In the earlier kilns the combustion gases pass through the grain but some have indirect heating systems whereby forced draught is induced by extractor fans or alternatively blowers to the combustion chamber. Even greater kiln efficiency is achieved by the use of tube heat exchangers, which use the heat from the air recirculated during the drying stage to preheat the air intake to the kiln.

(v) Dressing and Storing

Kilned malt is finally passed over screens where the rootlets are removed and the grain is polished. Malt must be stored dry in bins. Historically the malt was stored in brick, concrete or lined timber silos but nowadays hopper bottomed steel bins are in common use.

6.5 Non Traditional Malting production.

Apart from the traditional flooring method several process variations have been developed within the industry, which can broadly be identified as follows:

(i) The Saladin Box Method

This was first introduced toward the end of the nineteenth century and was originally intended for the germination stage only. It is basically a large rectangular box or bin usually constructed of concrete with a slotted metal plate floor through which air is passed up through the grain. Capacity may vary from 24 tonnes for older installations up to 100 tonnes or more in modern units. There may be several in use at a particular malting. The boxes are air conditioned and fully mechanised for turning and stripping the grain. The most recent development in this field enables the entire process from steeping to kilning to be carried out in the same box. Examples still in use tend to date from the late 1950’s early 1960’s.

(ii) The Wanderhaufen System

This is a further development whereby the germination room is divided into “streets” (each of which may be broadly likened to a Saladin Box) where the steeped barley is ventilated with humid air at controlled temperatures. The barley grains may be turned by the Wanderhaufen turners several times a day and at the same time the grains are carried forward along the street to the kiln at the end. Progress is very carefully monitored so that the grain reaches the kiln in just the right condition. This system is therefore a significant advance towards continuous malting. Examples still in use tend to date from the late 1950’s early 1960’s.

(iii) Drum Maltings

Germination of the barley takes place in revolving drums, which are fitted internally with helical blades, which facilitate discharge from the drum.

Ideal germinating conditions are promoted by controlling the temperature of the air blown through the drums.

(iv) Tower Maltings

Whilst common elsewhere in Europe the only UK example of a Tower malting is at Bass, Burton on Trent. The malting processes are carried out within a circular concrete tower, which has steeping and germinating vessels on separate floors. Its advantages are that the barley is moved by gravity during processing, the distances it travels are relatively short and also the land used is reduced to a minimum.

The kiln may be housed in a separate building.

(v) Germinating and Kilning Vessel Systems

The most common and preferred method of producing high volume, large batch sized malt. This occurs in circular tank-like structures lined in stainless steel within a steel framed building. The GKV can either have dedicated heating and ventilation facilities or be built in nests and share a common heater house. GKV production is much more energy efficient than the above alternatives.

7. Survey Capture

7.1 Survey details for Traditional Maltings are held on RSA and EDRM in the same manner as other bulk-class hereditaments.

7.2 Survey data for None Traditional Maltings is recorded manually in binders in the custodianship of the NSU’s caseworker support team in Leeds.

8. Valuation Approach

8.1 Traditional Maltings which comprise conventional factory/warehouse style buildings with ancillary offices, stores, and limited plant and machinery are valued on the Rental/Comparison method. Direct rental evidence does not exist so comparisons with industrial hereditaments in the locality will be necessary.

8.2 The primary method of valuation for Non Traditional Maltings is the Contractor’s Basis – this reflects the highly specialist nature of the occupation. It will incorporate a significant proportion of rateable plant and machinery and this is likely to include specialist process plant including Germinating & Kilning Vessels.

9. Valuation Support

9.1 Valuations for Non Traditional Maltings are held on the Non-Bulk Server (NBS).

9.2 Valuations for Traditional Maltings are held on RSA in the same manner as other bulk-class heriditaments.

Practice note: 2017: Maltings (Traditional and non-traditional)

1. Market Appraisal

After years of falling real ale sales and industry overcapacity which led to closures and disposals the industry was profitable once again by 2008 and remains so. Whilst small traditional Maltings suitable for conversion may still close the industry is in good shape. The trend towards larger sites with specialist germinating and kilning vessels at non-traditional Maltings will continue.

2. Changes from the last Practice Note

Nominal.

3. Ratepayer Discussions

There have been no discussions with the Malting industry for 2017.

4. Valuation Scheme

The rental comparison method remains the appropriate method of valuation for traditional Maltings. Direct rental evidence does not exist so comparisons with industrial hereditaments in the locality will be necessary.

The primary method of valuation for Non Traditional Maltings is the contractor’s basis – this reflects the highly specialist nature of the occupation. It will incorporate a significant proportion of rateable plant and machinery and this is likely to include specialist process plant including Germinating & Kilning Vessels.

1. Co-ordination Arrangements

1.1 This was a National Class where historic responsibilities for ensuring effective co-ordination lay with National Specialists. This is no longer the case.

1.2 Co-ordination is the responsibility of Specialists within Business Units that deal with the limited number of properties that remain.

1.3 The R 2000 Special Category Code 163 should be used. As a Specialist Class the appropriate suffix letter should be S.

2. Central Discussions

2.1 There have not been any central discussions with agents for the industry.

You are advised, in the absence of any agreement, to adopt the basis as outlined below.

3. State of the Industry

3.1 Over the years falling real ale sales, the suitability of traditional Maltings for conversion and the switch to germinating and kilning vessels at non-traditional Maltings has led to the closure of many sites.

4. Basis of Valuation

4.1 The rental comparison method remains the appropriate method of valuation for traditional maltings. Rental evidence may be scarce and any that is found should be very carefully analysed. Comparisons with industrial hereditaments in the locality can be made with care taking into account the age and methods of construction employed.

5. Plant and Machinery

5.1 No recent changes affecting the class.

6. Decapitalisation Rate

6.1 To be advised

Practice note: 2005: Public libraries

1. Co-ordination arrangements

This is a Group class. Responsibility for ensuring effective co-ordination lies with Groups. For more information see Rating Manual - section 6 part 1: practice note 1 2005.

The R 2005 Special Category Code 156 should be used. The appropriate suffix letter is G.

2. Approach to the Valuation

Valuers should have regard to the contents of RM 5: Section 620 in carrying out valuations for the 2005 Rating Lists.

The following guidance relates to the valuation for rating purposes of Public Libraries which are other than those for which, rebus sic stantibus, a rental market exists and which can be valued only by the Contractors Basis. This basis has been agreed with a consortium of agents representing various Local Authorities.

Care should also be taken when valuing libraries occupied by parish councils or bodies other than local authorities where a rent may be passing and for which regard may need to be had to ability to pay.

For Libraries which are located in former shops or offices with little or no adaptation and for which recent direct evidence of a new letting is available which demonstrates that the rent passing is commensurate with local rental tone, may be valued by reference to that direct rental evidence. Evidence on review of such hereditaments must be treated with extreme caution and not used without sight of the actual lease terms on which the review is based, as this may be tied to the level of rents for an alternative use.

For an account of the background to the public library service, see Appendix 1 to R2000 Practice Note.

3. The Contractors Basis

3.1 General

Rating Manual section 6 part 3: section 600 - Para 4.3.2 sets out the general approach to be adopted in circumstances where the Contractors Basis applies. For consistency however valuers should note the points below.

3.2 Stage 1

Building Cost

With the exception of areas that are patently not used , the actual GIA should be used to calculate the Estimated Replacement Cost (Stage 1) of the building. In particular, basement book storage should (unless clearly surplus to requirements) be included at the full rate. The storage of books and archive materials is an essential part of a public library service and has not been overtaken by new technology. In valuing main libraries that are of elaborate design it should be assumed that the library authority would still require one or two “flagship” libraries within its area, and so a cost higher than that typically used for branch libraries should be applied. On the basis of the 2000 scheme, the updated costs to be applied are:-

Central Libraries £ 1,085 /m2 Branch Libraries £940 /m2

These costs are based on a building without air conditioning, where this exists an addition to the basic cost will need to be applied depending upon the particular circumstances. For larger &/or more modern Libraries a certain amount of mechanical air handling, falling short of full air conditioning, may be treated as being reflected within the Build Cost.

Multi Storey Allowance

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

Branch Library Central Library

3 storeys 5% Nil

4 storeys 10% 2.5%

5 storeys 17.5% 7.5%

8 storeys 22.5% on 8th floor & above 12.5% on 8th floor & above

17.5% on 5th floor & below 7.5% on 5th floor & below

The differential between Branch & Central Libraries is that the latter tend to have more departments, which may typically suit a layout of up to 3 storeys.

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

System Built Libraries

The cost to be adopted in respect of a system built library will be in the range of £630 – 775 per m2. The lower end of the range will apply, typically, to a lightweight steel framed building with infill panels and flat felt roof, whilst the upper end of the range will be used for a partly brick built structure with some infill panels and pitched felt roof.

Portable Buildings

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

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

The costs shown in the table above are exclusive of fees and external works. This cost reflects standard obsolescence for this type of building and no further allowance should be made.

External Works

An addition for external works would typically be in the range of 2 ½ % - 10 %. The following percentages would normally apply but are not intended to be prescriptive :-

Description Max. Addition
A site with almost 100% site coverage or a branch library with only garden areas and no parking. * In exceptional circumstances, for libraries where plot ratio is typically over 800% with minimal external works, a minimum addition of 1% may be applied. 2 ½ %*
A site with possibly 2-3 car parking spaces for staff/public & a minimal amount of landscaping. 5 %
A site with adequate car parking typically 4-7 spaces and sufficient landscaping. 7 ½ %
An expansive site, with in excess of 8 spaces and significant amounts of landscaping. 10 %

Where actual landscaping is considered to be excessive and would not be replicated in the modern substitute, the appropriate external works percentage should be arrived at having regard to the lesser notional external works.

When considering the appropriate addition regard should be had not only to the extent of the external works but also to the number of storeys as this will increase the ERC without necessarily increasing the cost of external works.

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

Guidance on the amount to be added for fees is provided by the R2005 Cost Guide. An addition for fees of 13% is appropriate for most libraries. The exceptions being system built libraries where 10% and portable buildings where 7 ½ % would be appropriate.

3.3 Stage 2

The following scale is intended to provide a degree of uniformity of allowance but need not rigidly be applied. In the case of buildings which have been significantly refurbished a lower allowance may be applied, particularly where the works undertaken have enabled internal re-modelling to improve the functional aspects of the library.

Year of Completion % Allowance
1995 onwards 0 – 5
1985 – 1994 6 – 15
1980 – 1984 16 – 20
1965 – 1979 21 – 35
1955 – 1964 36 – 45
Pre 1955 45 – 50

It would not normally be appropriate to concede an allowance in excess of 50%, since few buildings of this age are likely to exist in their original form. Most will have been the subject of modernisation programs and will have been improved to a standard comparable with a more recent age band. Higher allowances should therefore only be granted in exceptional circumstances, on particular facts.

Care should be taken when considering the potential difficulties of implementing policies on new technologies e.g. The New Library Network .The most significant cost element there will be in the provision of non-rateable elements ( multi-media terminals ) which do not impact on the value of the hereditament. Only the provision of additional wiring and sockets would affect rateable value. Space requirements to fulfil the possible need to provide for new technologies will be less problematic where efficient book management systems are in place to reduce shelf-space requirements.

Limited Opening Hours.

For small local libraries typically less than £7,500 RV serving centres of population of less than 7,500 persons the following allowances should be made where the opening hours are less than 25 hours per week.

Research has been undertaken into the viability of small local libraries of the type identified above, which suggests that in many cases it would not be viable for local authorities to construct a substitute and would instead make provision of a mobile library service. It is recognised that the significant limiting of opening hours is a measure to reduce costs at these less viable facilities and reflects the low demand relative to the cost of supplying the service.

Opening Hours % Allowance
21 – 25 hrs per week 7.5 %
18 – 20 hrs per week 15 %
15 – 17 hrs per week 20 %
Less than 15 hrs 25 %

The above scale is to be applied sequentially, after any standard age and obsolescence allowance. For the avoidance of doubt, these Stage 2 allowances should not be aggregated prior to being applied and therefore any allowance for limited opening hours should be applied to the figure already depreciated for Age & Obsolescence.

3.4 Land Value

Urban Rural
Central London (EC & WC, W1, W2, W11, W8, SW1, SW3,SW5, SW7 and SW10 Postal Districts) Inner London (SW6, W9, W10, W12, W14, NW1 NW8, N1 E1, E2, SE1(North)*) London boroughs of Enfield, Barnet, Harrow, Brent, Hillingdon, Ealing, Hounslow, Richmond, Kingston, Wandsworth, Merton, Bromley, and those parts of Camden, Westminster,Kensington & Chelsea, and Hammersmith & Fulham outside the defined postal districts for the London Central and Inner zones 40% 25% N/A N/A
Remainder of London & Heathrow - M25 Belt Remainder of the London Boroughs (including SE1 (south)*) and the Heathrow - M25 belt and the London peripheral libraries. 20% 12.5%
The "Heathrow -M25 belt" is for this purpose defined as the following Billing Authority areas:
Hertfordshire: Hertsmere, St Albans, Three Rivers,
Watford, Dacorum
Buckinghamshire: Chiltern, South Bucks, Wycombe
Berkshire: Slough, Windsor and Maidenhead,
Bracknell, Wokingham, Reading
Surrey: Surrey Heath, Runnymede,
Spellthorne, Elmbridge, Woking,
Guildford, Waverley
Oxfordshire: Oxford
Remainder of South East England: defined as the following counties excluding the Billing Authority areas forming part of the "Heathrow - M25 belt" and excluding portions of other Billing Authority areas which lie within the M25 Bedfordshire, Buckinghamshire, Berkshire, Oxfordshire, Hertfordshire, Essex, Kent, East and West Sussex, Surrey, Hampshire, and the Bournemouth area of Dorset. 15% 7.5%
For the avoidance of doubt the Isle of Wight should be treated as outside "South East England" for the purpose of this Practice Note.
Remainder of England and Wales 10% 5%

NB

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

(ii) Caseworkers should use their own discretion in deciding between “urban” and “rural” categories, but it is suggested that the sites of hereditaments situated on the fringe of build-up areas with populations not exceeding 3000 should be designated rural. While shading between the rural and urban percentages is permitted for libraries sited on the urban fringe, it should only be applied where the hereditament falls within an area where alternative development would not be likely to be permitted.

3.5 Decapitalisation Rate

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

3.6 Stage 5

Any advantage or disadvantage which might affect the value of the occupation of the hereditament as a whole should be reflected at this stage. For guidance, issues that may be pertinent to consider at this stage are (this list is for guidance only and is not exhaustive)

Up to Max.

Poor or Inflexible Layout which cause operational difficulties. 5.0%

Inadequate Staff Room / Meeting Room Facilities 2.5%

Inadequate Toilet Facilities. (ie Staff 1.25% & Public 1.25%) 2.5%

No on site parking nor public car-parking close by. 7.5%

(Applies to Branch Libraries Only)

A reduction should also be given at Stage 5 of £7.49 RV psm of the ‘foot print’ area of felted flat roofed buildings, and in the case of flat roofed buildings with other coverings, £3.76 RV psm of the foot print of the flat roof. This does not apply to System Built or Portable Buildings.

Any adjustment made at Stage 5 should not duplicate adjustments made elsewhere, in particular care should be taken that any allowance for layout does not duplicate an allowance for multi-storey where already given..

Where allowances are appropriate it is expected that they should not normally exceed 15%. Furthermore, it would be unusual for one issue in isolation will warrant the full allowance.

When taking all factors to be considered at Stage 5 into account these will not normally exceed 15% in total. However, exceptionally, where a flat roof allowance, considered by itself, amounts to 15% or more of the value resulting from Stages 1- 4, while the allowance for flat roof is capped at 15%, additional allowance may be given for other stage 5 factors, provided that the total aggregate allowance for all stage 5 factors should not normally exceed 20%.

3.7 Vacant Libraries

Where a Library is vacant at AVD due to a lack of demand, and there is no prospect of an alternative use within the same mode or category of occupation, the hereditament should be shown in the list at an RV of £1.

Where post AVD there is an MCC which results in the closure of the library, such as opening of a new library close by or demolition/decanting of a large area of housing close by, then this may be reflected at the appropriate date.

4. IT 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 0