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

Section 820: public and other independent 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 those schools which are independent of public funds and also those which, while receiving grants from such funds, remain independent of local education authorities or other official bodies in their direction and control. They would include:

a. Private schools providing primary education above the age of 5 - these will include “preparatory schools”

b. Independent schools providing secondary education for example above the age of 12. These schools may also cater for pupils in a lower age group. Some independent schools are “public schools”.

c. Free schools created under the provisions of the 2010 Academies Act. Although publically funded directly by central government, free schools, unlike schools under the control of local education authorities, are exempt from teaching the national curriculum and have increased control over teachers’ pay and conditions and the length of school terms and days.

d. For clarity this section does not apply to state funded academies other than free schools, nor to University Technical Colleges (see Rating Manual - section 6 part 5 - section 585: colleges of further education). However it does apply to (free) studio schools.

2. List description and special category code

List description: school and premises

Scat code 223: Suffix S

3. Responsible teams

This is a specialist class and responsibility for valuation lies with the the National Valuation Unit (NVU).

4. Co-ordination

NVU 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 public and independent as well as free schools. 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

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 3 part 2 for further guidance on mode and category of use.

6. Survey requirements

6.1 Method of measurement

Public and Independent (P&I) schools 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

Both P&I and publically funded Free schools are very varied as regard to the nature and age of the buildings and the extent of sporting and other facilities which together form the hereditament.

Some P&I schools cater for boarders and as such will contain a domestic element and form composite hereditaments. This is dealt with in more detail below.

Some hereditaments contain a place of religious worship and in these circumstances it is possible that partial exemption may apply. This is dealt with in more detail below.

6.3 Unit of assessment

The principles referred to in Rating Manual: section 3 part 1 - hereditament should be adhered to. In cases of difficulty advice from the NVU Valuer 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.

6.4 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 - for example traditional brick and tile or steel framed
  • dimensions (where measured to NIA) and description of the accommodation for example arts, science or administrative block etc.
  • 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 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.
  • details of external sports facilities for example 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 for example heating, air conditioning, security systems (to include CCTV, barriers, gates and perimeter fencing), solar panels, wind turbines etc.
  • brief details and the GIA of any domestic accommodation (see below domestic/non domestic borderline)
  • 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)

6.5 Domestic/non-domestic borderline

P&I schools may comprise entirely of day pupils, entirely of boarding pupils or a mixture of both. Boarding accommodation will fall to be domestic and its extent will need to be identified.

If the hereditament has been identified as comprising both domestic and non-domestic property, it is composite and should be valued on the basis of a notional distribution of uses. Since boarding schools are not a bulk class, it is unlikely there will be sufficient information from other hereditaments on which to base a notional distribution of uses. Instead the objective should be to adopt the distribution of uses, which is the norm for the actual hereditament at the AVD, minor fluctuations in the proportion of non-domestic to domestic use and its distribution within the hereditament may therefore be ignored.

LGFA 1988 (Sch 6 para 2(1)A) provides that the RV of a composite shall be the amount which would reasonably be attributable to the non-domestic use of the property. In the case of non-domestic property within composite hereditaments, this may be taken to be full value of that property.

Areas wholly used for domestic purposes shall be assessed to Council Tax and be excluded from the non-domestic assessment. However it is important that the survey of the whole hereditament is captured and entered into any contractors valuation in order for the correct contract size adjustment to be calculated. The line entry and GIA of the domestic accommodation can then be identified and excluded from the non-domestic valuation after the calculation of the CSA has been made. The hereditament (and thus both the non-domestic rating list entry and council tax entry) should be flagged as composite.

Where there has been a change in the use of property from domestic to non-domestic, or vice-versa, since AVD, that change should be ignored unless:

  • the change has been accompanied by physical alterations to the hereditament which renders the property unsuitable for the original use, or
  • the change has been accompanied by physical alterations to the locality or other hereditaments which have altered the demand for use for the domestic or non-domestic purposes, or
  • the hereditament has ceased to be, or has become a composite

6.5.1 Identifying domestic and non-domestic property

Property is domestic if it is used wholly for the purposes of living accommodation [LGFA 1988 s66 (1)(a)].

The following should be regarded as domestic property:

  1. i) permanent boarding accommodation provided for pupils and staff regardless of whether pupils/staff are in residence throughout the term, or merely during the week
  2. ii) ablution facilities used exclusively by boarders (other than in sports changing rooms)
  3. iii) locker rooms used exclusively by boarders for storage of personal effects
  4. iv) common room, “Prep” or study rooms and music practice rooms regardless of location within the school, provided that they are not used for teaching, and that they are used exclusively by boarders
  5. v) laundries, unless also serving premises outside the hereditaments
  6. vi) kitchens and dining rooms when serving only boarders and resident staff
  7. vii) staff accommodation

The following should be regarded as non-domestic property:

  1. i) classrooms
  2. ii) laboratories
  3. iii) libraries (except where situated in boarding houses and used exclusively by boarders for recreational purposes)
  4. iv) assembly halls etc.
  5. v) workshops and maintenance areas
  6. vi) sports halls (but see below for exceptions)
  7. vii) study rooms/common rooms used exclusively by “day” pupils
  8. viii) chapels
  9. ix) sanatoria/sick bays (provided that a substantial element of treatment and/or care is given)
  10. x) gymnasia
  11. xi) music rooms used for teaching.

Sports facilities at boarding schools should exceptionally be treated as domestic property where all the following conditions are satisfied:

  • they are used only by boarders from particular “houses” and not by the school in general
  • no coaching/formal teaching is provided
  • they are not used for organised inter-house or school matches/contests

It is considered that where all the above conditions are met, the sports facility must be treated as domestic.

Where holiday/conference use is made of living accommodation, and where that use is of self-catering accommodation which is available for letting periods of less than 140 days in the preceding year, it will be regarded as domestic property (LGFA 1988 s66 2(B)). In all other circumstances property used for these purposes should be valued in accordance with the instructions within the practice note relevant to the Rating List under consideration.

6.6 Exemptions

6.6.1 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. Full guidance is available in the Rating Manual: section 6 valuation practice part 6 exemption part A property used for disabled persons. Areas of contention should be referred for technical advice.

6.6.2 Chapels

Under paragraph 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 6 valuation practice part 6 exemption part B.

7. Survey capture

Survey information including plans are to be stored on EDRM. Where the school 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 school 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 rental evidence of sufficient quantity and quality within the locality and mode or category (see Turnbull (VO) v Goodwyn School (2014) RA/88/2014. When considering rents relating to schools 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.

8.2 The special nature of these hereditaments and the circumstances under which they operate will normally exclude a valuation approach on a receipts and expenditure basis. In the absence of rental/comparative evidence for the hereditaments in this section, the basis of assessment is the contractor’s basis. In Eton College v Lane (VO) and Eton UDC (1971 RA 186) the Lands Tribunal expressed the view that for “this kind of case the contractor’s test is, almost certainly, the best substantive method that has been devised so far”. Consequently in the absence of rental/comparative evidence other P&I and Free schools should be assessed by reference to the contractor’s basis in accordance with 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 public and independent schools spreadsheet held on the Non-Bulk Server (NBS).

Practice note: 2017 - public and independent schools

1. Market Appraisal

1.1 Public and Independent Schools

Public and Independent (P&I) schools are financed by means other than public funds or which, while receiving grants from the public sector, remain independent of local education authorities.

It is understood there are approximately 2500 private schools throughout the UK (excluding N Ireland) educating in the region of 7% of all children. Over half of these schools belong to the Independent Schools Council, which incorporates schools having approximately 80% of the countries privately schooled pupils.

In addition are nursery schools/ day nurseries which have flourished in recent years in response to the Government child care voucher system.

Increasingly P&I schools are being operated by private limited companies. Some of these companies run multiple schools one such, as of 2013, operated 32 schools in the UK alone, 21 being in London, the Home Counties and the South East in addition to many others worldwide. Many of them are held Freehold, but some are believed to be held on lease at arm’s length rents.

There has been a tendency, albeit limited for an amalgamation of senior and prep/pre prep schools so as to offer “all through education from the age of 5 and below to 18 .

New private schools have been opened to offer an independent education either as a result of a perceived shortcoming of the state school system in an area or to fulfil a demand from a particular niche of the schools market such as to cater for particular religions or educational ethos, such as Steiner or Forest Schools. For example the New Model School Company operates two independent primary schools in North London.

1.2 Free Schools

The 2010 Academies Act authorized the creation of Free Schools. In is understood that between 2010 and 2015 more than 400 free schools were approved for opening in England potentially providing some 230,000 additional school places.

Free schools are set up by groups of parents, teachers, charities, businesses, universities, trusts, religious or voluntary groups, but funded directly by central government.

They are often run by an “education provider” - an organisation or company procured by the founders but these firms are not allowed to make a profit.

The schools are established as academies, independent of local authorities. Unlike local-authority-run schools, they are exempt from teaching the national curriculum and have increased control over teachers’ pay and conditions and the length of school terms and days.

Free schools are expected to offer a broad and balanced curriculum and are subject to the same Ofsted inspections as all other maintained schools

As at 1/4/2015 it is understood there were more than 400 Free Schools either open or approved.

2. Changes from the 2010 Practice Note

There are a number of changes to the approach to valuation most notably at stages 1 and 2. These are detailed below.

  • The costs to be applied at Stage 1 relate to the modern substitute and do not vary with the age of the actual buildings as was the approach adopted for the 2010 List. However differential costs are provided to distinguish Free schools and those schools which are more closely related in terms of character to LEA maintained schools
  • The costs relating to temporary buildings and out buildings do not incorporate age and obsolescence allowances which are now referred to separately.
  • The costs relating to external works and fees are now given separately from the building costs
  • 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.
  • Matters relating to the Domestic/Non Domestic borderline and exemption are contained with the main body of section 820 of the Rating Manual

3. Ratepayer Discussions

No discussions have taken place with the governing bodies of Public and Independent schools or Free schools, nor with any central body or individual representatives or agents.

4. Valuation Scheme

As for the 2010 Rating List the method of valuation to be adopted in assessing this class of property will depend upon the quantity and quality of the rental evidence available. For smaller schools particularly in London and parts of the South East it is anticipated that sufficient rental evidence will be available to enable a rentals approach to be adopted. However as at 1/11/2015 3 appeals to the Upper Tribunal relating to the approach to valuation of 3 small P&I schools in North London were outstanding. The outcome of those appeals will add clarity as to the quality of and weight to be attached to rental evidence within the class and as a consequence the scope of the rentals method of valuation.

It is thought unlikely that there will be sufficient evidence to support the application of the rentals method to schools in excess of 2000sqm but all evidence should be properly considered, adjusted and weighed before determining that a rentals approach is dispensed with.

The majority of P&I and Free Schools will be assessed by reference to the contractors basis

4.1 Contractors Basis

4.1.1 Stage 1

i) Building Costs

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.

For the purpose of this exercise the building types typically found on a school site can be classed into 4 types (excluding domestic accommodation). These are defined in Appendix A.

The Costs to be applied to the various building types are shown in Appendix B1. The Costs in Appendix B1 are exclusive of external works (Appendix B2) and Fees (Appendix B3) . Different costs are to be applied to the category A buildings at most P&I schools to those to be applied to Free schools, although where a building at a P&I school is of a quality more typically found at a post 2014/pre 2000 built state funded school the lower cost should be applied.

Appendix B4 states the costs to be applied to special external features (specialised sports facilities).

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).

ii) Location Adjustment

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

iii) Multi Storey Allowances

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

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

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

4.1.2 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.

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

The standard age and obsolescence allowances to be applied to the ERC of the individual blocks of permanent buildings are set out in Rating Manual: Section 4: Section 7: The Contractor’s Basis of Valuation: R2017 Practice Note: Stage 2 - Age and Obsolescence Allowances.

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

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

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

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

4.1.3 Stage 3 The Addition for Land

i) Developed Land

Developed land will consist of the footprint of all buildings, associated landscaped areas, roadways, car parks and hard standings, paths, and playgrounds. It will normally consist of the whole site of the school less playing fields. The value of this category of land will be taken as a percentage of total aggregate adjusted replacement cost. The percentages are set out in Appendix E

ii) Undeveloped Land

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

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

Consideration should be given to ignoring areas of land which would be regarded as being surplus to the normal non domestic requirements of the school.

4.1.4 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

4.1.5 Stage 5 End Adjustment
  • Scope

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

Allowances under this heading may be made for appropriate relevant matters including bad site layout, dispersal, piecemeal development, superfluity (see below), split sites and fragmentation leading to operational difficulties. Allowances may additionally be appropriate for other specific matters peculiar to an individual hereditament. Each property must be judged on its own merits. In considering these points the presence or effects of any domestic buildings should not be discounted. * Split Sites

Where schools are located on split sites, no allowance should be made if the decision to operate in this way was made after AVD. Where a split site school was operating as at the AVD, a deduction may be appropriate if the split site causes identifiable operational disadvantages. It will be necessary to review the unit of assessment in respect of split site schools in one assessment in the light of the decision of the Supreme Court in Woolway(VO) v Mazars. Refer to NVU as necessary * Superfluity

  • It may be appropriate to make an end allowance for superfluity provided this is justified by specific evidence in relation to the usage of any particular buildings being considered. Space unused at the AVD and very shortly afterwards demolished or otherwise relinquished, would be an example. ii.In respect of Day Schools (children up to age 13), where pupil numbers have fallen due to demographic changes in the locality, an allowance may be warranted. This is assessed by comparing the pupil numbers as at 1 April 2010 with those as at 1 April 2015. Before an allowance is given, it is important to establish that the drop in pupil numbers has been caused by demographic changes, rather than other factors, such as the temporary closure of classrooms for remodelling.

In all cases superfluity must exceed 10% before an allowance can be considered and it is then calculated by adopting a 0.5% allowance for every 1% superfluity above 10%, i.e. 14% superfluity would warrant a 2% allowance. Superfluity allowances are subject to a maximum of 30%.

In general end allowances for superfluity within the entire school are appropriate only where there has been a significant material change in circumstances in the locality, for example, the erection of a new school. In such circumstances there has to be a clear link between a diminution in pupil numbers in one school and the movement of pupils into the new school. iii.In the case of former domestic accommodation only:-

A reduction of 80% of the value of property used for non-domestic purposes at 1st April 2015, which was in domestic use at 1st April 2008 shall be made, provided that the following conditions apply:

a. There has been a decline in the number of boarders between 1st April 2008 and 1st April 2015; and

b. The property concerned has undergone no material physical adaptation; and

c. There has been no increase in the number of day pupils between 1st April 2008 and 1st April 2015.

This specific allowance is intended to apply to former domestic accommodation for which there is little, if any demand for non-domestic use. It should not be taken to justify an allowance where other evidence suggests that no allowance is warranted. For example, an allowance would be inappropriate for this type of property if additional accommodation had been built which was similar in type to the accommodation for which an allowance was being considered.

Where there are buildings, or parts of buildings, that have been unused for a number of years, the area of these buildings, or parts of buildings, is to be excluded from the GIA. * Listed Buildings

Where a building is listed Grade 1, Grade 2 or Grade 2* , it is possible that the repairing liability which would fall upon the hypothetical tenant would be in excess of that encountered in maintaining and repairing buildings of a similar age and type which are not listed. However this should not be assumed and an allowance should not be conceded unless it can be demonstrated that over a period of years expenditure above the norm has been incurred.(When considering accounts for this purpose , expenditure on improvements should be ignored but any grants should be taken into account ).An allowance under this heading should not normally exceed 5% * Oil, LPG or Electric Central Heating

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

  • Flat Roof Allowance

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

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

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

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

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

4.1.6. The Addition for Holiday Accommodation/Letting

Where holiday/conference use is made of living accommodation, and where that use is of self-catering accommodation which is available for letting periods of less than 140 days in the preceding year, it will be regarded as domestic property (LGFA 1988 s66 2(B)). In all other circumstances property used for these purposes should be valued in accordance with Appendix F.

Appendix A

Building Category Definitions

Category (1) Administration, Science and General Teaching facilities:

Broadly those buildings employed for the following uses: * Administration * Arts * Business and Computer Studies * Crafts * Humanities * Languages * Libraries * Biology * Chemistry * Physics * Craft, Design and Technology (CDT) buildings * Tiered theatres with fly towers

Category (2) Sports Buildings

These are divided into two types:

Sports Halls

This category includes all sports halls (together with standard ancillaries), which are not structurally integral parts of the main school building. Ancillaries include:

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

The cost levels given in Appendix B 1are appropriate for Category 2 Sports Halls. The bottom price in the range (drawn from the costs of local authority school sports halls) is to be applied to a standard quality building. Where the quality of the building and facilities are superior, then the higher pricings are to be applied.

Where any poor quality basic Sports Halls (with no toilets, showers or washrooms) exist, it may be appropriate, on the particular merits, to value such buildings on the Category 5 (Non Sports Outbuildings) scale, as detailed below.

Indoor Swimming Pools

The costs are given in Table B1

Category (3) Temporary Structures

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

Category (4) Outbuildings other than Sports Facilities

Broadly those buildings employed for the following uses: * Garages * Groundsman’s Stores * Maintenance Stores and Maintenance Workshops * Basic changing huts

Note: Hutted Pavilions to be included in Category 3. Better quality sports pavilions may fall into Category 2.

Consideration may be given to ignoring the value of small poor quality stores where they are little used and would not form part of the modern replacement building.

Appendix B1

Building Costs

Category £/m2 GIA Cost Guide Code Remarks
Category 1 Buildings –P&I Schools   1850   N/A  
Category 1 Buildings –Free Schools and inferior Buildings at P&I schools   1400   N/A  
Category 2 -Sports Halls 1011 to 1470 42AC02  STF020  
Category 2- Indoor Swimming Pools   2089   STD020  
Category 3-Temporary Building (with w/c)    709   42AC04 Location Factors do not apply to temporary Buildings
Category 3-Temporary Building(without w/c)    619   42AC05  
Category 4-Outbuildings(not sports) 218 to 722   A price range is specified so that the unit price adopted may reflect the quality, condition and purpose of the particular building concerned. Buildings with a GIA of less than 26sqm are regarded as deminimis

External Sports Facilities

Description

Cost

Cost Guide Reference

Open Air Swimming Pools

   

In ground

£1275/m2 water area

63Z00T

Over ground(pre-fabricated)

£1000/m2 water area

63Z00Y

Insulated corrugated plastic roofing over open air pools

£364/m2

63Z00S

Hard Surface Sports Area(tarmacadam) below 6,000m2

Area(tarmacadam) above 6,000m2

(Dedicated for sports-not playgrounds.)

£42/m2

£35/m2

33U030

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

Grass surfaces

   

Generally

£12/m2

33U00G

     

Tennis courts (Hard)

Depends on court number and specification. Select from Cost guide (costs include drainage and fencing)

53U30A, F, P, K and 53U40A,F,K or P

Tennis courts (grass)

£30,970 per court. Add for fencing

33U00K. Fencing 33U2K5 or 33U2KA

Squash Courts

£1268/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

8 lane hard porous water bound surface

£374,343 Per track

63P00E

2 lane synthetic (with 4 lane home)

£190,954 Per track

63P00L

Lighting

   

AWP lighting Columns

Depends on specification. Select from Cost Guide

63P10A to 63P20P(tennis), & 63P10A to R (general per column)

Pitch Food lighting,

Hockey, Football, Rugby

Hockey STJ020, Football STH020, Rugby STI020

Canopies

£175-£500 /m2 dependent upon specification and size.

N/A

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

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

Appendix C

Multi-Floor Allowances

 

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

Appendix D1

Age and Obsolescence Scales

Category 2 Buildings (Swimming Pools)

Swimming Pools (Indoor and Outdoor) are to be given the following allowances. The allowance for outdoor pools is capped at 50% Where an indoor swimming pool is relined and/or the building refurbished the allowance should be reduced to an appropriate level having regard to the level of refurbishment and the original age of the facility/building.

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

Appendix D2

Age And Obsolescence Scales

Category 2 Other Sports Facilities

It will be appropriate to consider allowances for obsolescence in respect of some but not all of the specialised items referred to in Appendix B4 Dry Sports buildings such as gymnasiums are to be treated as category 1 buildings for the purpose of age and obsolescence allowances No allowance will normally be appropriate in respect of tarmac, crushed stone, or “Redgra” surfaces.

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

Appendix D3

Age And Obsolescence Scales

Category 3 Buildings (Temporary)

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

Appendix E

Developed Land Value

Geographic Location Urban % ARC Rural % ARC
Central London N 47.00 N/A
Central London S 21.00 N/A
GLNW 11.00 N/A
GLSW 34.00 N/A
GLNE 16.50 N/A
GLSE 20.50 N/A
North East  3.45 1.72
North West  7.40 3.70
Yorkshire & Humberside  6.25 3.12
East Midlands  3.45 1.72
West Midlands  6.10 3.05
East of England 11.60 5.80
South East 11.00 5.50
South West   7.80 3.90
North Wales   5.10 2.55
South Wales   6.60 3.30
Cardiff 16.50 8.25

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

Appendix F

Where holiday / conference use is not Domestic Property as defined by LGFA s.66 (2B), the property should be valued as follows: 1) The first 500 bed nights notified for each hereditament shall be regarded as deminimis and are not required to be valued. 2) Where more than 500 bednights are notified, the following rates per bednight should be applied to the number of additional bednights notified: For the avoidance of doubt it is all the bednights which must be included not solely the additional bednights over 500.

Accommodation England Price Per Bednight Wales Price Per Bednight
Non Ensuite Accommodation £2.68 £2.40
Ensuite Accommodation £3.11 £2.78

3) Deduct the appropriate obsolescence allowance (if any)

4) Where the living accommodation remains in assessment for the whole year whether as a separate hereditament or as part of a larger hereditament (whether or not a composite) no further adjustment is needed and the result of steps 1) to 2) prices the appropriate rateable value. However, where the hereditament containing the living accommodation falls to be entered in the Rating List only for the duration of the holiday/conference use, the following formula:

(number of bednights x 365) / (number of days used for letting) should be applied to the relevant bednight price, in order to produce the appropriate rateable Value to be entered in the Rating List for the duration of the holiday/conference use.

Practice note: 2010: Appendix 1

A. Cost levels for buildings

Cost levels per sq m for the following categories of building are given at Table 1A.

The indicated costs are inclusive of fees and external works.

The costs are subject to the locational adjustment factors set out in Appendix 2.

Category (1) Buildings includes the categories that for R2005 were described as: -

Category (1A) Administration and General Teaching facilities:

Broadly those buildings employed for the following uses: * Administration * Arts * Business and Computer Studies * Crafts * Humanities * Languages * Libraries

and

Category (1B) Science Buildings:

Broadly those buildings employed for the following uses: * Biology * Chemistry * Physics

NOTE 1: Craft, Design and Technology (CDT) buildings are likely to fall in Category 1A but may be in Category 1B depending upon the degree of specialisation.

NOTE 2: Tiered theatres with fly towers to go in Category 1B

NOTE 3: Some classrooms (particularly in junior schools) may be referred to as science classrooms but have few, if any, additional services. Such classrooms will be treated as Category 1A.

Category (2) Sports buildings

These are divided into two types:

Sports Halls

This category includes all sports halls (together with standard ancillaries), which are not structurally integral parts of the main school building. Ancillaries include:

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

The cost levels given in Table 1A are appropriate for Category 2 Sports Halls. The bottom price in the range (drawn from the costs of local authority sports halls) is to be applied to a standard quality building. Where the quality of the building and facilities are superior, then the higher pricings are to be applied.

Where any poor quality basic Sports Halls (with no toilets, showers or washrooms) exist, it may be appropriate, on the particular merits, to value such buildings on the Category 5 (Non Sports Outbuildings) scale, as detailed below.

Indoor Swimming Pools

The cost levels to be applied are given in Table 1A. The bottom price in the range is (drawn from the costs of local authority swimming pools) is to be applied to a standard quality Pool Hall. Where the quality of the building and facilities are superior, then the higher pricings are to be applied.

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

Category (3) Temporary Structures

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

Category (4) Outbuildings other than serviced Sports Facilities

Broadly those buildings employed for the following uses: * Garages * Groundsmen’s Stores * Maintenance Stores and Maintenance Workshops * Basic changing huts

Note: Hutted Pavilions to be included in Category 3. Better quality sports pavilions may fall into Category 2.

Consideration may be given to ignoring the value of small poor quality stores where they are little used and would not form part of the modern replacement building.

B. Cost levels for special external features

Certain special external features require specific additional costing in accordance with the costs indicated in Table 1B.

The indicated costs are inclusive of fees and any external costs, which are part of those facilities.

The costs are subject to the locational adjustment factors set out in Appendix 2.

Table A: Cost Guidance for Buildings

£/m2 Category 1 (Formerly Cat 1a & Cat 1b)
Arts/Admin & Science Accommodation LA school type buildings (see Note 3 below)
pre 1951 £1252
1951 £1252
1952 £1252
1953 £1252
1954 £1252
1955 £1252 £1149
1956 £1252 £1113
1957 £1252 £1082
1958 £1252 £994
1959 £1252 £995
1960 £1252 £991
1961 £1252 £976
1962 £1252 £961
1963 £1252 £947
1964 £1252 £933
1965 £1252 £920
1966 £1252 £906
1967 £1252 £895
1968 £1252 £870
1969 £1252 £858
1970 £1252 £847
1971 £1252 £835
1972 £1252 £825
1973 £1252 £826
1974 £1252 £873
1975 £1252 £923
1976 £1252 £946
1977 £1252 £965
1978 £1252 £981
1979 £1252 £1044
1980 £1252 £1106
1981 £1252 £1152
1982 £1252 £1152
1083 £1252 £1152
1984 £1252 £1198
1985 £1252 £1197
1986 £1252
1987 £1252
1988 £1252
1989 £1252
1990 £1252
1991 £1252
1992 £1252
1993 £1252
1994 £1252
1995 £1252
1996 £1252
1997 £1252
1998 £1252
1999 £1252
2000 £1252
2001 £1252
2002 £1252
2003 £1354
2004 £1354
2005 £1505
2006 £1505
2007 £1505
2008 £1505
2009 £1505
2010 £1505
£/m2 Category 2 (Sports Buildings) £/m2 Category 2 (Sports Buildings)
Sports Hall Swimming
£935 - £1080 £1430 (Plus up to 1/3rd for Superior Quality Buildings)
Category 3 Temporary Buildings
£/m2 adjusted for Age and Obsolescence, not Location £/m2 adjusted for Age and Obsolescence, not Location
Date Temp, no WC Temp, with WC
Pre 1995 £341 £398
1995 to 1999 £487 £572
2000 to 2002 £557 £654
2003 Onwards £587 £685
Category 5 Outbuildings other than sports facilities £/m2 adjusted for Age and Obsolescence
Date All Types
All Ages £180 - £540

Notes:

  1. For Category 2 & 5 buildings only, a price range is specified so that the unit price adopted may reflect the quality, condition and purpose of the particular building concerned.
  2. Higher Costs are recommended for 2003 and later buildings due to the effects of Part L of the Building Regulations. Cost advice has been given that increases costs for Category 1 & 3 Buildings by approx 5%. Buildings after this date should be assumed to be compliant unless there is specific evidence to the contrary.
  3. For any buildings clearly constructed to the standards of local authority schools in the period 1956 - 1985 then the scale as shown above may be adopted for those buildings.
  4. Location Factors do not apply to Temporary Buildings
  5. Buildings with a GIA of less than 26sqm are regarded as de minimis

Table 1B: Cost Guidance for External Sports Facilities

Note: the following costings for external sports facilities have not been specifically agreed as part of this Memorandum but are included here for information. These are the costings that will be applied by the Valuation Office.

Cost guidance for sports facilities outside Category 1 and 2 buildings, but are subject to adjustment for location by reference to the factors set out in Table 1C;
Facility Price / Sq m
Open air swimming pool ("in ground"); £835 per sq m water surface area
Open air swimming pool (prefabricated) £577 per sq m water surface area;
Insulated corrugated plastic roofing to open air pools £359 per sq m GIA;
Squash courts; £710 - 960 per sq m
Tennis courts (grass or hard) £17,000 per court;
Athletics tracks :
6 Lane Synthetic £400,000
8 Lane Synthetic £485,000
2 Lane Synthetic (with 4 lane home) £225,000
6 Lane Hard Porous Waterbound surface £105,000
8 Lane Hard Porous Waterbound surface £125,000 plus £9,000 per floodlighting column
All-weather (artificial turf) pitches £57 per sq m plus £9,000 per floodlighting column.
Tarmacadam playing surface (dedicated sports use - not playgrounds) £28 per sq m.
Crushed stone or "Redgra" playing surface £20 per sq m

Practice note: 2010: Appendix 2

Location Factors

Location Factors should be applied in accordance with those recommended in the 2010 Cost Guide.

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

Practice note: 2010: Appendix 4

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

A. Developed land

The following percentages should be added to ARC
Urban Rural
Central London 25% n/a
Remainder of London and M25 Belt 20% 10%
Rest of South East 13% 6.5%
Rest of England & Wales 10% 5%

Central London – should be taken to include the EC and WC, W1, W2, W11, W8 SW1, SW3, SW5, SW7 and SW10, postal districts. b. The M25 Belt – should be taken to be the whole county of Surrey, plus Windsor & Maidenhead, Slough, Wokingham, Bracknell Forest, South Bucks, Wycombe Chiltern, Reading, Oxford (City) Cambridge (City) Dacorum, Three Rivers, Watford, St Albans, Hertsmere, Welwyn/Hatfield, E Herts, Broxbourne, Epping Forest, Brentwood & Sevenoaks. c. The Rest of the South East – consists of those parts of the counties of Kent, East Sussex, West Sussex, Hants (excl Isle of Wight), Berks, Bucks, Oxon, Herts, Beds and Essex (to the extent that they exclude the BA’s listed as in the M25 belt) plus Bournemouth, Poole & Christchurch.

**NB: ** 1. 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.

  1. Valuers should use their own discretion in deciding between “urban” and “rural” categories, but it is suggested that the sites of hereditaments situated on the fringe of build-up areas with populations not exceeding 3000 should be designated rural. It is also appropriate to adopt a rural percentage where a public and independent school in an urban setting gains no advantage from its location in a built up area. While shading between the rural and urban percentages is permitted for schools sited on the urban fringe, it should only be applied where the developed land within the school hereditament falls within an area where alternative development would not be likely to be permitted.

B. Undeveloped land value

The value of undeveloped land should be found by using a price per hectare derived from the evidence of transactions in other amenity or sports field land. The value adopted should reflect fencing and drainage. The typical range of values for undeveloped land is :

Central London (as defined above) £175,000 per hectare
Remainder of London within GLA boundary £60,000 per hectare.
Within M25, but outside Greater London £50,000 per hectare
North East £25,000 per hectare
Remainder of England and Wales £45,000 per hectare

Practice note: 2010: Appendix 5

Where holiday / conference use is not Domestic Property as defined by LGFA s.66 (2B), the property should be valued as follows:

1) The first 500 bed nights notified for each hereditament shall be regarded as de minimis and are not required to be valued.

2) Where more than 500 bednights are notified, the following rates per bednight should be applied to the number of additional bednights notified:

England En suite £3.20
Non en-suite £2.76
Wales En suite £2.86
Non en-suite £2.47

3) Deduct the appropriate obsolescence allowance (if any) by reference to Appendix 3.

4) Where the living accommodation remains in assessment for the whole year whether as a separate hereditament or as part of a larger hereditament (whether or not a composite) no further adjustment is needed and the result of steps 1) to 2) prices the appropriate Rateable Value. However, where the hereditament containing the living accommodation falls to be entered in the Rating List only for the duration of the holiday/conference use, the following formula:

(number of bednights x 365) / (number of days used for letting)

should be applied to the relevant bednight price, in order to produce the appropriate Rateable Value to be entered in the Rating List for the duration of the holiday/conference use.

Practice note: 2010: Appendix 3

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

A. Obsolescence

Buildings – Categories 1A, 1B, and 2

The following scale is intended to provide a degree of uniformity of allowance. It is not intended that a rigid aged-based system of allowances should be applied. The allowances are intended to reflect the typical range of obsolescence commonly found in structures erected or subsequently modernised during different periods. It is consistent with the terms of this guidance that a school building constructed towards the end of a particular age-band can merit the maximum allowance for the age-band, if justified by a relatively high degree of physical and/or functional obsolescence. Similarly, a building of considerable age may require no allowance, if its running and maintenance costs are no greater, and its fitness for its use no less, than would be the case with a new building.

Date (see Notes 2 and 3 below) Percentage Deduction
Post 1999 0 - 5
1990 – 1999 6 - 15
1985 – 1989 16 - 20
1970 – 1984 21 - 35
1960 – 1969 36 - 45
Pre 1960 45 – 50 (see Note 1 below)

Note 1: It would not normally be appropriate to concede an allowance in excess of 50%, since few pre-war buildings are likely to exist in their original form. Most will have been the subject of modernisation programmes and will have been improved to a standard comparable with a more recent age band. Higher allowances can be granted in exceptional circumstances, on particular facts.

An example of a circumstance where a higher than 50% allowance might apply would be, say, an older historic Listed building with excessive maintenance and running costs.

Note 2: The date of any building shall be taken to be 12 months prior to its first use.

Note 3: Where a building has been substantially altered or extensively refurbished at a later date, the notional date adopted for the purpose of these tables should be representative of the building as a whole.

External sports facilities

For other sports facilities as described in Appendix 1, Table 1B (but excluding tennis courts, tarmacadam, crushed stone or Redgra surfaces) it will be appropriate to consider allowances. The age related scale set out in Table B, below, is intended to provide a degree of uniformity of allowance, giving an allowance up to a maximum of 25%. This maximum may be exceeded in the case of swimming pools and squash courts over 30 years old, which have not been significantly refurbished during that period.

An allowance may be appropriate in respect of tennis courts, Tarmacadam, crushed stone or Redgra surfaces although judgements must be made having regard to their condition. Such a facility in an ‘as new’ condition may not merit an allowance irrespective of age.

Table B – external sports facilities

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

B. Multi-Storey Buildings

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

  • 3 storeys - 5%
  • 4 storeys - 10%
  • 5 to 7 storeys - 17.5%
  • 8 storeys or more - 22.5% for 8th floor and above, 17.5% for lower floors

In calculating the number of storeys of a building, the presence or effects of Category 4 (domestic) buildings should not be ignored.

These 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 in the building then it will be appropriate to apply the allowance to the extended part.