Colleges of further education
This publication is intended for Valuation Officers. It may contain links to internal resources that are not available through this version.
This addresses colleges of further education (CoFE), the new “university technical colleges” (UTC) which despite their name are not university hereditaments, and police training colleges (PTC). Reference is made to the 2007 Lands Tribunal decision in the truro college case, which is of enduring relevance in the choice of valuation method, between rental/comparative and contractor’s basis.
1.1 General
The hereditaments to which this Section refers are colleges of further education within the definition of “educational hereditament” (see Rating Manual: section 370 - educational hereditaments). It also includes police training colleges with accommodation and facilities of a similar standard to that of a college of further education.
1.2 Definition
The term “further education” covers all types of post-school education apart from that given in universities and colleges of higher education. It includes sixth form colleges and tertiary colleges (ages 16 to 19). All such institutions are now independent of Local Education Authorities (LEA) and are funded centrally.
1.3 University technical colleges (UTCs):
2.1 List description: college and premises
2.2 Special category code 065 should be adopted. Suffix: G/S.
The National Valuation Unit (NVU) is responsible for the valuation and assessment of colleges of further education which are assessed by reference to the contractors basis of valuation. Those that fall to be assessed by reference to the rentals/comparative method of valuation are the responsibility of regional units
The Class Co-ordination team (CCT) and the Civic Valuation Panel (VP4) have responsibility for this class ensuring effective co-ordination across the network. The team are responsible for the approach to and accuracy and consistency of colleges of further education valuations. The NVU 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 before starting any new work
5.1 Replacement costs
In estimating replacement costs regard should be had to costs appropriate to provide suitable replacement buildings of an acceptable standard. The building to be cost in Stage 1 of the contractor’s basis is not necessarily an exactly similar structure. A more simple modern substitute may be acceptable, perhaps more appropriate for the occupier’s needs. It is however emphasised that each case turns on the requirements of the occupier, and in determining whether a similar building or a simpler substitute would be required, it is necessary to examine all the requirements of the occupier, functional and aesthetic, as they existed at the antecedent valuation date.
5.2 Site value
In their decision in the Cambridge Colleges case (Downing College and Others v Cambridge CC and Alsop (VO) 1968 RA 603) the Lands Tribunal thought that “college land should be valued in the light of residential values” even where situated on the opposite side of the road to a commercial frontage. Some colleges of further education, particularly in London, could fulfil their particular function satisfactorily if situated on a less valuable site provided that adequate transport facilities were available. The object should be to assess the cost of a site which would enable the college to function equally well.
In all of the appeal cases concerning colleges or other educational establishments where the contractors basis has been used, undeveloped areas (primarily unencumbered by buildings) e.g. sports fields, amenity land etc. have been valued at much lower figures than residential development land values, often by comparison with similar properties valued separately in the locality.
Cost information is mainly derived from analysis to Gross Internal Area (GIA) as defined in the VOA Code of Measuring Practice. Referencing details should therefore be compatible and measurements taken in accordance with the Code. Net Internal Area (NIA) will be required where a rental/comparative valuation method is to be used (see Basis of Valuation below).Therefore guidance on the measurements to be taken should be obtained from the valuation case owner before inspection.
Surveys should record the use of all space. Where areas are unused, enquiry should be made and noted as to their use in the future, or otherwise.
Surveys and plans should be stored in the property folder of the Electronic Document Records Management (EDRM) system.
In the absence of any rental evidence for this class, the contractor’s basis should be adopted. This does not exclude the possibility that rental/comparative evidence should be used. In deciding whether comparison should be made with non-educational property, regard should be had both to the existing physical state of the hereditament, and to its mode or category of occupation. Comparison may only be made between hereditaments in the same category of occupation, except where specific evidence indicates that hereditaments in different modes/categories attract similar rental levels. Instances where there is a practice by the College, or by other Colleges in the area, of renting or purchasing comparable office accommodation at full office values would, for example, provide such evidence. The planning status of a particular use is not necessarily indicative of mode or category of occupation for rating purposes, but where general office use is unlikely to be permitted, a hereditament used as College offices should not be valued on office tone, unless rents actually paid for College use indicate otherwise.
The Lands Tribunal’s decision in the Appeal of JE Reeves (VO) 2007RA168 provides an instance where the use of rental/comparative approach was preferred to the contractor’s basis.
Valuation considerations:
8.1 Application of the contractor’s basis:
For this class a scheme of valuation is to be applied where the contractor’s basis is used. The details of this scheme are set out in the relevant Practice Note for each rating list.
8.2 Community accommodation: unit of assessment:
At some colleges, community facilities may have been constructed, generally a leisure centre or swimming pool. This accommodation will generally be open to the public outside normal college hours. The normal requirements of rating law should be followed to identify the rateable occupier. When this is not the occupier of the remainder of the school, the community accommodation should be separately assessed. Identification of the occupier in cases where use is shared between the college and the community may be difficult. The object should be to identify the body which has paramount control. Nominally this is likely to be a management committee on which either, on one side the college, or on the other the local authority, has a majority vote. In practice such a body may exercise no effective de facto control, and it is more correct to have regard to whether the college/local authority appoint the staff, set opening hours, control services and manage the maintenance, if so it should be presumed that they are in paramount control and the community accommodation should be considered to be part of the school hereditament.
8.3 Community accommodation: decap rate:
Where the community accommodation is separately assessed on the contractor’s basis, it will normally attract the higher prescribed decap rate. But if the hereditament is used more by the college than by the community it may fall within the definition of “educational hereditament” and qualify for the lower rate. In assessing use more regard should be had to numbers of college and community users, than to time reserved for college and community use. No such hereditament can qualify for lower “educational hereditament” decap rate unless it was constructed or adapted for use for the purposes of a college. Where college accommodation is used occasionally for non-educational purposes, such use should be regarded as de minimis, and will not prevent application of the appropriate “educational hereditament” decap rate.
8.4 Exemptions:
Any part of the hereditament referred to in Paragraph 16 of Schedule 5 to the Local Government Finance Act 1988 should be regarded as exempt from rating and therefore ignored for valuation purposes. Such areas can include accommodation set aside for special educational and resource facilities to provide accommodation for pupils coming within the definition of “disabled” or “illness” referred to under paragraph 16. Such definitions can include “incomplete development of the mind” and pupils recovering from an illness or a disability. Questions arising as to whether pupils are suffering from a disability or illness as defined for the purpose of this exemption are a matter for a medically qualified opinion, this should be sought from the institution in occupation.
All valuations should be entered onto the Non-Bulk Server under the relevant Scat code.
Other support available:
- Survaid
- Class Co-ordination team
1. Market Appraisal
National College websites provide data and statistics relating to the sector as well as links to other web sites which together provide a useful reference source for the sector.
Details of new colleges constructed during the period can be found on the Internet.
2. Changes from the last Practice Note
As previously where there is adequate rental evidence, colleges of further education will be valued using the rentals method of valuation, otherwise they will be assessed by reference to the contractor’s basis.
The contractor’s approach remains broadly the same with updated costs, allowances and land values. Both flat roof and multi-floor allowances have been modified.
3. Ratepayer Discussions
No discussions have so far been held either with ratepayers or their representatives and none are anticipated.
4. Valuation Method
The following basis is also to be used for police training colleges with accommodation and facilities comparable to a college of further education.
4.1. Stage 1 Estimated Replacement Cost
(i) Building Costs
Descriptions of building use classification and their associated cost can be found within Appendix A.
The costs shown in Appendix A 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 CCT.
(ii) External Works
The cost of external works is to be added in accordance with Appendix B.
(iii) Location Factors
Where appropriate costs should be adjusted for location by reference to the Location Factors set down in the 2023 Rating Cost Guide and included at Appendix C.
(iv) Contract Size Adjustment
An adjustment for contract size is to be made to the building cost in accordance with the 2023 VOA Cost Guide and replicated in Appendix D below.
(v) Professional Fees and Charges
Fees should be added at the percentages shown in the VOA published Cost Guide at Section 7. For convenience these are shown below in Appendix E.
4.2. Stage 2 Age and Obsolescence Allowances
The age and obsolescence allowances to be applied to the individual building blocks after addition for external works and fees are dependent upon the building classification.
The majority of college buildings should reference the scale within Table 1 of Appendix F. Stand-alone Workshops and Stores should reference Table 2 and the scale for Temporary Buildings is found in Table 3. External sports facilities such as artificial playing surfaces and associated lighting should reference Table 4.
For the avoidance of doubt the age of the building is to be taken as the date the building was completed.
Table 1 Civic Obsolescence Allowance is applicable to the main college and sports buildings and caseworkers should take into account the following salient points;
a) The revised age and obsolescence scale represents the combined age related physical depreciation along with functional obsolescence and technological redundancy exhibited by buildings of each age typical for their quality/specification and condition. It is anticipated that the stated allowances will be adopted in the majority of cases and only either moderated or increased in exceptional circumstances.
b) Extensions are to be given an allowance appropriate to their age unless of a lower specification than would be expected of a building of that age. Where a lower specification is used the allowance should be increased to a level appropriate to reflect the specification of the building as a whole.
c) In respect of physical depreciation, the above scales are intended to reflect normal wear and tear and/or deterioration due to the age of the building. The scales assume an average degree of cyclical refurbishment work will have been undertaken, to include whole or partial renewal of building sub-components, most particularly relating to mechanical and electrical services and internal fit-out, but also including periodic renewal of roof coverings and windows.
d) It follows from the above that no adjustment away from the scales is required in the majority of cases where older buildings have been subject to modernisation and refurbishment works, as these are explicitly assumed to have occurred. An exception to this would be for a building taken back to shell and reconstructed with significant renewal of structural elements, where an abatement of age-related physical obsolescence may be required.
e) An example of a building requiring an abatement of the allowances provided by the scales (due to the mitigation of physical depreciation) would be where a major renovation has occurred utilising the original building foundations, frame (including upper floors) but with comprehensive replacement of the external envelope (walls, windows), a complete internal refit and wholescale replacement of mechanical and electrical services.
f) Conversely, the above scales will be insufficient to reflect physical obsolescence in cases where buildings are substantially un-modernised and in any case, the scales do not apply in instances where the hereditament is not repairable at reasonable cost and where it falls to be valued rebus sic stantibus.
g) To qualify as a substantially un-modernised building it is expected that the building will predominantly have the following:
- single glazed windows;
- original internal layout;
- original ceiling height, with no suspended ceilings;
- original external walls;
- pre 1980 internal finishes (flooring, ceiling and walls, internal doors and fixtures and fittings).
h) In respect of functional and technological obsolescence, for buildings that remain in operational use, the scales include adjustments to reflect functional and technological deficiencies observable in buildings typical of their original period of construction but taking account of the level of assumed cyclical refurbishment reflected in the physical depreciation element of the scales.
i) The type of functional and technological obsolescence factors already reflected in the scales include the following:
- poor energy efficiency and/or environmental sustainability;
- inappropriate layout inhibiting flexible and efficient space utilization;
- modern health & safety, fire or building regulations that preclude or limit the original purposes of the building;
- dated design practices that restrict modern usage (such as lack of/or minimal floor and ceiling voids);
- the absence of modern space heating or air conditioning systems within a building;
j) It follows that only where buildings display specific functional deficiencies or issues of technological redundancy, that are atypical for their age, should consideration be given to applying an additional allowance.
k) One indicator that additional functional obsolescence is present such that the allowance provided by the scales should be adjusted is the presence of new and/or replacement facilities making the existing building surplus. Such replacement or other material redundancy should be considered and may result in the total redundancy of the pre-existing building, i.e. 100% obsolescence.
4.3 Multi-Storey Allowances
Notes for Multi-Storey Allowance
1. The allowances set down in the table below should be made to the whole of individual buildings. Each principal building should be considered separately. This allowance is intended to reflect the operational difficulties of housing a college in a multi-storey building. In particular, they reflect the problems of students moving between different storeys. Where the lower floors of a building are larger than the upper floors, the valuer 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.
2. It is recognised that lift provision is rarely ideal, and normal deficiencies (such as the inability to cope fully with peak time movements of students) in the operation of multi-storey buildings will be present. It is also recognised, however, that in some instances lift provision may be inadequate to cater for the number and size of floors served and in such circumstances the allowances in Table 1 should be applied.
3. Buildings completed in 2005 and afterwards are assumed to have adequate lifts to comply with the Disability Discrimination Act and relevant Building Regulations. In the absence of evidence to the contrary, it is to be further assumed that pre-1980 buildings have inadequate or no lifts, but those completed between 1980 and 2005 have adequate lifts. In assessing the adequacy (or otherwise) of pre-2005 buildings each principal building should be considered separately and 2 lifts are to be considered adequate for a building up to an overall GIA of 6,000 m2, with an additional lift required for each additional 6,000 m2.
Buildings with inadequate or no passenger lifts
| Floors | Percentage Deduction |
|---|---|
| 2 Main Floors | Nil |
| 3 Main Floors | 5% overall |
| 4 Main Floors and above | 10% overall |
4.4. Flat Roof Allowances
Permanent buildings built prior to 2005 with a flat roof are to receive an additional allowance. The allowance is not to be applied to temporary buildings, stores, workshops or garages.
- £80m2 ARC of the footprint of the flat roof for buildings constructed up to and including 2004
- No allowance for flat roofs constructed from 2005 and onwards
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 Valuation Unit before proceeding.
4.5. Stage 3 Land Value
Land within the hereditament is to be valued in two categories.
i) Developed Land
Developed land will consist of the footprint of all buildings, associated landscaped areas, roadways, car parks and hard standings, paths, playgrounds and specialised sports surfaces (all weather pitch, tennis courts, outdoor swimming pools, running tracks etc). 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 G.
(ii) Undeveloped Land
Undeveloped land will consist of the area of playing fields and exceptionally other amenity land put to beneficial use. 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 Appendix G.
4.6. Stage 4 Decapitalisation
The adjusted cost, net of allowances, and including land value, is to be decapitalised at the lower prescribed rate.
4.7. Stage 5 End Allowances
End Allowances - 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 head should not duplicate adjustments made elsewhere, e.g. in arriving at the developed site value by adopting a percentage of ARC rather than the 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 substitute.
Allowances under this head may be considered for dispersal, poor site layout, piecemeal development, surplusage and any other relevant matters.
Where a school has oil or LPG fired central heating an end allowance of 5% shall be applied to the valuation.
Appendix A Unit Costs, Cost Guide Reference and Building Use Classification
| Description | Cost Guide Reference | Cost (£/m2 unless stated otherwise) |
|---|---|---|
| Main Buildings (Category 1) | 42AC01 | £2,200 |
| Sports Hall (Category 2) | 42AC02 | £1,279 |
| Leisure Centre (Dry) - Superior (Category 2) | STF020 | £1,860 |
| Temporary & Portable Buildings (without WC) (Category 3) | 42AC04 | £728 |
| Temporary & Portable Buildings (with WC) (Category 3) | 42AC05 | £833 |
| Living accommodation - Caretakers (Category 4) | 42AC06 | £1,289 |
| Living accommodation - Halls of Residence (Category 4) | £1,677 | |
| Training workshops (Category 5) | 42AC07 | £1,265 (less 25% uninsulated, +/- 2% for each 0.5m eaves variation from 5m standard) |
| Sports Facilities (as detailed below) | ||
| Indoor pool | STD020 | £2,643 |
| Squash courts | STS033 | £1,403 |
| Tennis Courts | Select from cost guide according to specification and number 53U21A - 53U70P | |
| Athletics tracks 6 lane synthetic each | 63P00A | £541,357 per item |
| Athletics tracks 8 lane synthetic each | 63P00C | £736,236 per item |
| Athletics tracks 2 lane synthetic (with 4 lane home) each | 63P00L | £233,135 per item |
| Sports Grounds Floodlighting | Select from cost guide according to specification and number 63P10A - 63P20P | |
| Full Pitch flood lighting | Hockey STK020 Football STH020 Rugby STI020 | £74,750 per pitch £70,004 per pitch £70,004 per pitch |
| All weather artificial turf pitches- Astroturf (sand filled not dressed) | STK020 | £77 |
| All weather artificial turf pitches- Water based hockey pitches | STL020 | £125 |
| All weather artificial turf pitches- 3G Multi Sports surface | STM020 | £104 |
| Tarmacadam playing surfaces (sports use not playgrounds) | 33U025 33U030 | £41 (in excess of 6,000m2) £50 (up to 6,000m2) |
| Crushed stone or ‘Redgra’ playing surfaces | 33U010 | £45 |
Building Use Classification
Category (1) Buildings: Main college buildings, whether of traditional or system build construction, intended for permanent use. Broadly these will comprise the following; class space and other teaching areas, assembly halls, dining halls, administrative offices, staff rooms, libraries, kitchens, music rooms, sports halls which are structurally an integral part of main college buildings, stores which are structurally integral to the main college buildings.
Category (2) Sports buildings This applies to all separate ‘dry’ sports buildings comprising of sports halls and standard ancillaries such as WCs, changing rooms, ablutions, viewing gallery and fitness rooms.
Indoor swimming pools should be costed separately as shown.
Other specialised sporting facilities not contained in buildings (e.g. tennis courts, open air swimming pools, athletics tracks) are costed as special external works, see Table above.
Category (3) Temporary Structures This category includes temporary buildings, and older hutted accommodation which has a limited life and which has not been brought up to the standard of Category (1) buildings. Buildings within this category should normally be used to provide overspill classroom accommodation, intended to have a relatively short use, and be of inferior construction/specification to those in Category 1. Typically, Category 3 buildings will be portable structures on pier foundations. Although “Horsa” and other sectional concrete constructions of similar standard are neither temporary nor easily portable, they should nevertheless be included in this category unless they have been substantially improved internally and externally and have been brought up to the standards of Category 1 buildings. This category should also include stores which are not a structurally integral part of the main college building.
The costs for all Category 1, 2 and 3 buildings are exclusive of fees and external works. They are subject to the locational adjustment factors set out in the Cost Guide.
Category (4) Living Accommodation Generally Category (4) buildings will be caretakers’ houses whilst a few colleges may provide accommodation for students. Where a hereditament is occupied partly for non-domestic and partly for domestic purposes it will be regarded as composite. The GIA of all domestic accommodation blocks should be captured and added to the valuation at the cost level in Table 1. This allows for the correct contract size adjustment calculation. The block should then have the value removed by way of a 100% percentage allowance applied in the domestic column within the NBS valuation sheet.
Category (5) Training Workshops These are stand-alone industrial type buildings generally used for the training of building or mechanical related trades.
The typical modern training workshops will be of light steel frame with PPM insulated cladding and roller shutter doors to 5m eaves and heated. Older workshops may be constructed from different materials.
The use of this type of building for partial or occasional academic instruction associated with the vocational training should not prevent the building from being considered as a training workshop.
Where significant fully fitted out classroom accommodation is present this should be segregated and valued in line with Category 1 costs. Valuer judgement should be adopted in respect of buildings/configurations that do not clearly fit in the defined categories and descriptions.
This classification should only be used to cost buildings which fall into the above descriptions. Workshops that are structurally integral to the main college building will not fall into this category and should be valued as Category 1. Buildings used for or by the estates or works departments of colleges are more likely to fall into Category 1 and/or 3 and should be valued by reference to the costs as provided above.
Category (6) Minor Buildings Small buildings such as meter houses, sheds and stores with individual Gross Internal Areas [GIA] of less than 26sq m should not be costed, as they are reflected within the addition for external works.
Appendix B External Works
| Classification | Site description | Percentage addition |
|---|---|---|
| Restricted Site | Town centre or island site with 90% or greater building ratio, typically with no more than a small yard or garden area, and either no car parking, or a very limited number of spaces within the hereditament. | 2% |
| As above, but typically with an 80% to 90% building ratio, limited parking, external lighting and landscaping and some boundary fencing. | 2.5% | |
| Intermediate Site | Site typically with 50% to 75% building ratio, some landscaping around buildings, secure boundary fencing, adequate staff parking, external lighting and landscaping with limited general parking within the hereditament | 5% |
| As above, but typically with 25% to 50% building ratio, landscaping around buildings, secure boundary fencing, external lighting, adequate parking within the hereditament which falls short of full requirements | 7.5% | |
| Extensive Site | Site typically with about 25% building ratio, landscaping around buildings, secure boundary fencing, external lighting and adequate parking within the hereditament for all staff and other users. | 12.5% |
Notes – 1. The plot ratio is the building GIA expressed as a percentage of the total site area (including building footprint). 2. An appropriate percentage addition should be chosen from the above ranges to reflect the extent of external works within the hereditament using plot ratio as an indicative guide only.
Appendix C Location adjustment
N.B. The Regions referred to are administrative areas and are not significant boundaries.
| NORTH EAST REGION | NORTH WEST REGION | |||
|---|---|---|---|---|
| Durham County | 0.91 | Cheshire | 0.97 | |
| Northumberland | 0.95 | Greater Manchester | 0.97 | |
| Tees Valley | 0.94 | Lancashire | 0.97 | |
| Tyne and Wear | 0.91 | Merseyside | 0.97 | |
| Cumbria | 0.98 | |||
| YORKSHIRE and HUMBERSIDE REGION | SOUTH WESTERN REGION | |||
| East Riding and North Lincolnshire | 0.92 | Cornwall | 1.05 | |
| North Yorkshire | 0.98 | Devon | 1.01 | |
| South Yorkshire | 0.94 | Dorset | 1.04 | |
| West Yorkshire | 0.92 | Gloucestershire | 1.03 | |
| North Somerset | 1.02 | |||
| Somerset | 1.01 | |||
| Wiltshire | 1.03 | |||
| EAST MIDLANDS REGION | WEST MIDLANDS REGION | |||
| Derbyshire | 1.05 | Herefordshire | 0.92 | |
| Leicestershire and Rutland | 1.04 | Shropshire | 0.95 | |
| Lincolnshire | 1.03 | Staffordshire | 0.94 | |
| Northamptonshire | 1.09 | Warwickshire | 0.98 | |
| Nottinghamshire | 1.03 | West Midlands | 0.95 | |
| Worcestershire | 0.98 | |||
| EAST OF ENGLAND REGION | SOUTH EAST REGION (EXCL. LONDON) | |||
| Bedfordshire | 1.04 | Berkshire | 1.08 | |
| Cambridgeshire | 1.00 | Buckinghamshire | 1.07 | |
| Essex | 1.03 | East Sussex | 1.09 | |
| Hertfordshire | 1.07 | Hampshire | 1.05 | |
| Norfolk | 0.96 | Isle of Wight | 1.05 | |
| Suffolk | 0.97 | Kent | 1.09 | |
| Oxfordshire | 1.04 | |||
| Surrey | 1.13 | |||
| West Sussex | 1.08 |
| WALES | CENTRAL LONDON SOUTH | |||
|---|---|---|---|---|
| North Wales | Lambeth | 1.28 | ||
| Flintshire | 0.89 | Southwark | 1.28 | |
| Conwy | 0.93 | Wandsworth | 1.30 | |
| Denbighshire | 0.90 | |||
| Gwynedd | 0.97 | GREATER LONDON NORTH EAST | ||
| Isle of Anglesey | 0.95 | Hackney | 1.25 | |
| Wrexham | 0.91 | Haringey | 1.31 | |
| Newham | 1.18 | |||
| Mid Wales | Tower Hamlets | 1.26 | ||
| Carmarthenshire | 0.98 | Barking and Dagenham | 1.18 | |
| Ceredigion | 0.99 | Enfield | 1.18 | |
| Powys | 0.97 | Havering | 1.09 | |
| Pembrokeshire | 0.92 | Redbridge | 1.15 | |
| Waltham Forest | 1.18 | |||
| South Wales | GREATER LONDON NORTH WEST | |||
| Blaenau Gwent | 0.96 | Barnet | 1.23 | |
| Bridgend | 0.93 | Brent | 1.22 | |
| Caerphilly | 0.93 | Ealing | 1.27 | |
| Cardiff | 0.94 | Harrow | 1.18 | |
| Monmouthshire | 0.99 | Hillingdon | 1.16 | |
| Neath Port Talbot | 0.88 | Hounslow | 1.16 | |
| Newport | 0.95 | |||
| Rhondda, Cynon, Taff | 0.93 | GREATER LONDON SOUTH EAST | ||
| Swansea | 0.93 | Bexley | 1.25 | |
| Torfaen | 0.91 | Bromley | 1.21 | |
| Vale of Glamorgan | 0.97 | Croydon | 1.24 | |
| Greenwich | 1.24 | |||
| CENTRAL LONDON NORTH | Lewisham | 1.21 | ||
| Camden | 1.32 | |||
| City of London | 1.24 | GREATER LONDON SOUTH WEST | ||
| Hammersmith and Fulham | 1.32 | Kingston Upon Thames | 1.26 | |
| Islington | 1.29 | Merton | 1.24 | |
| Kensington and Chelsea | 1.34 | Richmond Upon Thames | 1.22 | |
| Westminster | 1.30 | Sutton | 1.20 | |
Appendix D Contract Size Adjustment
The adjustment for contract size should be made having regard to the total ERC (after adjustment for location but before the addition for fees) in accordance with the following scales:
| ERC £ | % Adjustment |
|---|---|
| Up to 0.25 million | + 10% max |
| 0.5 million | + 8% |
| 0.75 million | + 6% |
| 1.0 million | + 4% |
| 1.5 million | + 3% |
| 2.0 million | + 2% |
| 3.0 million | + 1% |
| 4.0 million | 0% |
| 5.0 million | - 0.5% |
| 6.0 million | - 1% |
| 8.0 million | - 1.5% |
| 10.0 million | - 2% |
| 15.0 million | - 3% |
| 18.0 million | - 4% |
| 20.0 million | - 5% |
| 25.0 million | - 6% |
| 35.0 million | - 9% |
| Over 40.0 million | - 10% max |
| NB. Intermediate figures may be interpolated. |
Appendix E Professional Fees and charges
Fees should be added at the percentages shown in the VOA published Cost Guide at Section 7. For convenience these are shown below inclusive of the 2% complexity addition. Note that minimum fees may apply to counter inversion.
| Size of Contract | % Adjustment |
|---|---|
| Sums up to £750,000 | 14% |
| £750,000 to £1,499,000 | 13.5% |
| £1,500,000 to £3,999,999 | 11.5% |
| £4,000,000 to £7,499,999 | 10.5% |
| £7,500,000 to £14,999,999 | 9.5% |
| Over £15,000,000 | 9% |
Appendix F Age and obsolescence scales
Table 1: Civic Buildings Obsolescence Allowances
| Age | % Obsolescence | Age | % Obsolescence |
|---|---|---|---|
| 2023 | 0.00% | 1986 | 43.75% |
| 2022 | 0.75% | 1985 | 44.50% |
| 2021 | 1.50% | 1984 | 45.00% |
| 2020 | 2.50% | 1983 | 48.00% |
| 2019 | 3.50% | 1982 | 51.00% |
| 2018 | 4.75% | 1981 | 54.00% |
| 2017 | 6.00% | 1980 | 56.75% |
| 2016 | 7.25% | 1979 | 57.25% |
| 2015 | 8.50% | 1978 | 57.50% |
| 2014 | 10.00% | 1977 | 58.00% |
| 2013 | 11.25% | 1976 | 58.25% |
| 2012 | 12.75% | 1975 | 58.50% |
| 2011 | 14.25% | 1974 | 58.50% |
| 2010 | 15.75% | 1973 | 58.75% |
| 2009 | 17.25% | 1972 | 59.00% |
| 2008 | 18.75% | 1971 | 59.00% |
| 2007 | 20.25% | 1970 | 59.25% |
| 2006 | 21.75% | 1969 | 59.25% |
| 2005 | 23.25% | 1968 | 60.00% |
| 2004 | 24.50% | 1967 | 60.00% |
| 2003 | 26.00% | 1966 | 60.00% |
| 2002 | 27.50% | 1965 | 60.00% |
| 2001 | 28.75% | 1964 | 60.00% |
| 2000 | 30.00% | 1963 | 60.00% |
| 1999 | 31.25% | 1962 | 60.00% |
| 1998 | 32.50% | 1961 | 60.00% |
| 1997 | 33.75% | 1960 | 60.00% |
| 1996 | 35.00% | 1959 | 57.50% |
| 1995 | 36.00% | 1958 | 55.00% |
| 1994 | 37.00% | 1957 | 55.00% |
| 1993 | 38.00% | 1956 | 55.00% |
| 1992 | 39.00% | 1955 | 55% |
| 1991 | 40.00% | 1954 | 55% |
| 1990 | 40.75% | 1953 and earlier | 55% |
| 1989 | 41.50% | ||
| 1988 | 42.25% | ||
| 1987 | 43.00% |
Table 2 – Industrial Buildings Obsolescence Table
| Age | % Obsolescence | Age | % Obsolescence |
|---|---|---|---|
| 2023 | 0.00% | 1994 | 24.00% |
| 2022 | 0.50% | 1993 | 25.00% |
| 2021 | 1.00% | 1992 | 26.00% |
| 2020 | 1.50% | 1991 | 27.00% |
| 2019 | 2.00% | 1990 | 28.00% |
| 2018 | 2.50% | 1989 | 29.00% |
| 2017 | 3.00% | 1988 | 30.00% |
| 2016 | 3.50% | 1987 | 31.00% |
| 2015 | 4.00% | 1986 | 32.00% |
| 2014 | 4.50% | 1985 | 33.00% |
| 2013 | 5.00% | 1984 | 34.00% |
| 2012 | 6.00% | 1983 | 35.00% |
| 2011 | 7.00% | 1982 | 36.00% |
| 2010 | 8.00% | 1981 | 37.00% |
| 2009 | 9.00% | 1980 | 38.00% |
| 2008 | 10.00% | 1979 | 39.00% |
| 2007 | 11.00% | 1978 | 40.00% |
| 2006 | 12.00% | 1977 | 41.00% |
| 2005 | 13.00% | 1976 | 42.00% |
| 2004 | 14.00% | 1975 | 43.00% |
| 2003 | 15.00% | 1974 | 44.00% |
| 2002 | 16.00% | 1973 | 45.00% |
| 2001 | 17.00% | 1972 | 46.00% |
| 2000 | 18.00% | 1971 | 47.00% |
| 1999 | 19.00% | 1970 | 48.00% |
| 1998 | 20.00% | 1969 | 49.00% |
| 1997 | 21.00% | 1968 and earlier | 50.00% Max |
| 1996 | 22.00% | ||
| 1995 | 23.00% |
Table 3 - Temporary Buildings Obsolescence Table
| Age | % Obsolescence | Age | % Obsolescence |
|---|---|---|---|
| 2023 | 0.00% | 2002 | 31.50% |
| 2022 | 1.50% | 2001 | 33.00% |
| 2021 | 3.00% | 2000 | 34.50% |
| 2020 | 4.50% | 1999 | 36.00% |
| 2019 | 6.00% | 1998 | 37.50% |
| 2018 | 7.50% | 1997 | 39.00% |
| 2017 | 9.00% | 1996 | 40.50% |
| 2016 | 10.50% | 1995 | 42.00% |
| 2015 | 12.00% | 1994 | 43.50% |
| 2014 | 13.50% | 1993 | 45.00% |
| 2013 | 15.00% | 1992 | 46.50% |
| 2012 | 16.50% | 1991 | 48.00% |
| 2011 | 18.00% | 1990 | 49.50% |
| 2010 | 19.50% | 1989 | 51.00% |
| 2009 | 21.00% | 1988 | 52.50% |
| 2008 | 22.50% | 1987 | 54.00% |
| 2007 | 24.00% | 1986 | 55.50% |
| 2006 | 25.50% | 1985 | 57.00% |
| 2005 | 27.00% | 1984 | 58.50% |
| 2004 | 28.50% | 1983 and earlier | 60.00% Max |
| 2003 | 30.00% |
Table 4 External sports facilities obsolescence allowances
| Age | % Obsolescence | Age | % Obsolescence |
|---|---|---|---|
| 2023 | 0.00% | 2001 | 17.00% |
| 2022 | 0.50% | 2000 | 18.00% |
| 2021 | 1.00% | 1999 | 19.00% |
| 2020 | 1.50% | 1998 | 20.00% |
| 2019 | 2.00% | 1997 | 21.00% |
| 2018 | 2.50% | 1996 | 22.00% |
| 2017 | 3.00% | 1995 | 23.00% |
| 2016 | 3.50% | 1994 | 24.00% |
| 2015 | 4.00% | 1993 | 25.00% |
| 2014 | 4.50% | 1992 | 25.00% |
| 2013 | 5.00% | 1991 | 25.00% |
| 2012 | 6.00% | 1990 | 25.00% |
| 2011 | 7.00% | 1989 | 25.00% |
| 2010 | 8.00% | 1988 | 25.00% |
| 2009 | 9.00% | 1987 | 25.00% |
| 2008 | 10.00% | 1986 | 25.00% |
| 2007 | 11.00% | 1985 | 25.00% |
| 2006 | 12.00% | 1984 | 25.00% |
| 2005 | 13.00% | 1983 | 25.00% |
| 2004 | 14.00% | 1982 | 25.00% |
| 2003 | 15.00% | 1981 | 25.00% |
| 2002 | 16.00% | 1980 and earlier | 25.00% Max |
Appendix G Developed and Undeveloped Land Value
| Region | Developed Land % of adjusted ERC | Undeveloped Land per ha |
|---|---|---|
| South East | 15.25 | £100,000 |
| East Midlands | 4.25 | £75,000 |
| East | 17.50 | £75,000 |
| North East | 5.00 | £50,000 |
| North West | 8.50 | £75,000 |
| South West | 10.50 | £75,000 |
| West Midlands | 7.75 | £75,000 |
| Yorkshire and Humberside | 8.00 | £75,000 |
| Central London North | 50.00 | £250,000 |
| Central London South | 30.00 | £250,000 |
| Greater London NW | 21.50 | £200,000 |
| Greater London SW | 30.00 | £200,000 |
| Greater London NE | 21.00 | £200,000 |
| Greater London SE | 19.00 | £200,000 |
| Cardiff | 18.75 | £40,000 |
| Rest of South Wales | 8.50 | £35,000 |
| Mid and North Wales | 6.50 | £40,000 |
1. Market Appraisal
1.1 Colleges of Further Education
Further Education (FE) generally operates as a series of local catchment areas, which are largely defined by travel-to-learn patterns. Learners and employers primarily choose training they can reasonably commute to on a regular basis. As a consequence, providers recruit the majority of learners from within a short distance (5 miles) of their institution. This pattern is largely consistent across rural and urban areas. There are, however, opportunities for providers to deliver provision in new geographical areas, for example by using outreach centres or offering online and distance learning.
Each local area is generally characterised as having a few large providers (usually colleges) and many smaller providers. Differences in provider size are typically a function of the level of public funding received.
In England colleges generally receive a higher proportion of their income (from 60% to 80%) from the Education Funding Agency to deliver classroom based learning for young people.
In Wales colleges are funded direct from the Welsh Government Department for Education and Skills (DfES).
In addition, colleges have access to funding to deliver higher education provision, either by franchise arrangement with a University or directly from the Higher Education Funding Council for England (HEFCE) and Higher Education Funding Council for Wales (HEFCE). As a consequence, colleges can account for a relatively high proportion of a given local market.
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.
- 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 Stage 2 Obsolescence allowances and Guidance Notes for college buildings have been revised.
- Residential buildings should be now be captured and entered into the valuation to allow for the correct contract size adjustment.
3. Ratepayer Discussions
Full discussions have taken place with representatives of the College of Further Education sector namely Gerald Eve, Avison Young, Sanderson Weatherall and Altus Group as part of the Group Pre Challenge Review (GRCR) 35443523. The agreed scheme relates to those Colleges of FE valued on the contractor’s basis.
4. Valuation Scheme
Where there is adequate rental evidence, Colleges of Further Education will be valued on rentals basis, however it is envisaged the majority of Colleges of FE will be assessed by reference to the contractor’s basis.
The following basis is also to be used for police training colleges with accommodation and facilities comparable to a college of further education.
4.1 Contractor’s Basis
4.1.1 Stage 1 - Estimated Replacement Cost
(i) Building Costs
Descriptions of building use classification and their associated cost can be found within Appendix A.
The costs shown in Appendix A 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 CCT.
(ii) External Works
The cost of external works is to be added in accordance with Appendix B.
(iii) Location factors
Location factors should be applied in accordance with Appendix C.
(iv) Contract size Adjustment
The aggregate of locationally adjusted building costs and external costs should be subject to contract size adjustment as set out in Appendix D. The allowance will be determined by the cost of the whole hereditament including that of domestic and exempt areas. The allowance is determined by the ERC adjusted by location factor and inclusive of external works addition but net of professional fees.
(v) Professional Fees and Charges
Professional fees and charges are to be added in accordance with Appendix E. Note that minimum fees may be applicable to avoid inversion.
4.1.2 Stage 2 Age and Obsolescence
The age and obsolescence allowances to be applied to the individual building blocks after addition for external works and fees are dependent upon the building classification.
The majority of college buildings should reference the scale within Table 1 of Appendix F. Stand-alone Workshops & Stores should reference Table 2 and the scale for Temporary Buildings is found in Table 3. External sports facilities such as artificial playing surfaces and associated lighting should reference Table 4.
For the avoidance of doubt the age of the building is to be taken as the date the building was completed.
Table 1 Civic Obsolescence Allowance is applicable to the main college and sports buildings and caseworkers should take into account the following salient points;
a) The revised age and obsolescence scale has been agreed to represent the combined age related physical depreciation along with functional obsolescence and technological redundancy exhibited by buildings of each age typical for their quality/specification and condition. It is anticipated that the stated allowances will be adopted in the majority of cases and only either moderated or increased in exceptional circumstances.
b) Extensions are to be given an allowance appropriate to their age unless of a lower specification than would be expected of a building of that age. Where a lower specification is used the allowance should be increased to a level appropriate to reflect the specification of the building as a whole.
c) In respect of physical depreciation, the above scales are intended to reflect normal wear and tear and/or deterioration due to the age of the building. The scales assume an average degree of cyclical refurbishment work will have been undertaken, to include whole or partial renewal of building sub-components, most particularly relating to mechanical and electrical services and internal fit-out, but also including periodic renewal of roof coverings and windows.
d) It follows from the above that no adjustment away from the scales is required in the majority of cases where older buildings have been subject to modernisation and refurbishment works, as these are explicitly assumed to have occurred. An exception to this would be for a building taken back to shell and reconstructed with significant renewal of structural elements, where an abatement of age-related physical obsolescence may be required.
e) An example of a building requiring an abatement of the allowances provided by the scales (due to the mitigation of physical depreciation) would be where a major renovation has occurred utilising the original building foundations, frame (including upper floors) but with comprehensive replacement of the external envelope (walls, windows), a complete internal refit and wholescale replacement of mechanical and electrical services.
f) Conversely, the above scales will be insufficient to reflect physical obsolescence in cases where buildings are substantially un-modernised and in any case, the scales do not apply in instances where the hereditament is not repairable at reasonable cost and where it falls to be valued rebus sic stantibus.
g) To qualify as a substantially un-modernised building it is expected that the building will predominantly have the following:
- single glazed windows;
- original internal layout;
- original ceiling height, with no suspended ceilings;
- original external walls;
- pre 1980 internal finishes (flooring, ceiling and walls, internal doors and fixtures and fittings).
h) In respect of functional and technological obsolescence, for buildings that remain in operational use, the scales include adjustments to reflect functional and technological deficiencies observable in buildings typical of their original period of construction but taking account of the level of assumed cyclical refurbishment reflected in the physical depreciation element of the scales.
i) The type of functional and technological obsolescence factors already reflected in the scales include the following:
-
poor energy efficiency and/or environmental sustainability;
-
inappropriate layout inhibiting flexible and efficient space utilization;
-
modern health & safety, fire or building regulations that preclude or limit the original purposes of the building;
-
dated design practices that restrict modern usage (such as lack of/or minimal floor and ceiling voids);
-
the absence of modern space heating or air conditioning systems within a building;
j) It follows that only where buildings display specific functional deficiencies or issues of technological redundancy, that are atypical for their age, should consideration be given to applying an additional allowance.
k) One indicator that additional functional obsolescence is present such that the allowance provided by the scales should be adjusted is the presence of new and/or replacement facilities making the existing building surplus. Such replacement or other material redundancy should be considered and may result in the total redundancy of the pre-existing building, i.e. 100% obsolescence.
Multi-Storey Allowances
Allowances under this heading may be applicable to buildings with inadequate or no passenger lifts. The allowances are set out within Appendix G together with guidance notes around the concept of inadequate lifts. The allowance will not be applicable to buildings built 2005 onwards.
Flat Roof Allowance
Allowances attributable to the presence of a flat roof have been amended to accord with current advice as to both the durability of modern coverings and market perception. Buildings within Categories 1 and 2 with a flat roof are to receive an end allowance as follows:
a) £80m2 is to be applied to the footprint of the flat roof for buildings constructed up to and including 2004.
b) £60m2 is to be applied 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 CCT before proceeding.
4.1.3 Stage 3 The Addition for Land
Land within the hereditament is to be valued in two categories.
(i) Developed Land
Developed land will consist of the footprint of all buildings, associated landscaped areas, roadways, car parks and hard standings, paths, playgrounds and specialised sports surfaces (all weather pitch, tennis courts, outdoor swimming pools, running tracks etc). 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 H.
(ii) Undeveloped Land
Undeveloped land will consist of the area of playing fields and exceptionally other amenity land put to beneficial use. 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 Appendix H.
4.1.4 Stage 4 Decapitalisation Rate
The ARC of the buildings is aggregated with the land value, and then decapitalised 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
End Allowances - 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 head should not duplicate adjustments made elsewhere, e.g. in arriving at the developed site value by adopting a percentage of ARC rather than the 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 substitute.
Allowances under this head may be considered for dispersal, poor site layout, piecemeal development, surplusage and any other relevant matters.
Where a school has oil or LPG fired central heating an end allowance of 5% shall be applied to the valuation.
Appendix A
Building Category Definitions
Appendix A Unit Costs, Cost Guide Reference and Building Use Classification
| Description | Cost Guide Reference | Cost (£/m2 unless stated otherwise) |
| Main Buildings (Category 1) | 42AC01 | £1,766 |
| Sports Hall – Standard (Category 2) | 42AC02 | £1,011 |
| Leisure Centre (Dry) – Superior (Category 2) | STF020 | £1470 |
| Temporary & Portable Buildings (without WC) (Category 3) | 42AC04 | £619 (less 12.5% no heating) |
| Temporary & Portable Buildings (with WC) (Category 3) | 42AC05 | £709 (less 12.5% no heating) |
| Living accommodation -Caretakers (Category 4) | 42AC06 | £1,097 |
| Living accommodation – Halls of residence (Category 4) | £1326 | |
| Training workshops (Category 5) | 42AC07 | £1,000 (less 25% uninsulated, +/- 2% for each 0.5m eaves variation from 5m standard) |
| Sports Facilities (as detailed below) | ||
| Indoor pool | STD020 | £2,089 |
| Squash courts | STS033 | £1,268 |
| Tennis Courts | Select from cost guide according to specification and number 53U21A - 53U70P | |
| Athletics tracks 6 lane synthetic each | 63P00A | £435,087 per item |
| Athletics tracks 8 lane synthetic each | 63P00C | £592,321 per item |
| Athletics tracks 2 lane synthetic (with 4 lane home) each | 63P00L | £190,954 per item |
| Sports Grounds Floodlighting | Select from cost guide according to specification and number 63P10A - 63P20P | |
| Full Pitch flood lighting | Hockey STK020 Football STH020 Rugby STI020 | £63,000 per pitch £59,000 per pitch £59,000 per pitch |
| All weather artificial turf pitches- Astroturf (sand filled not dressed) | STK020 | £65 |
| All weather artificial turf pitches- Water based hockey pitches | STL020 | £106 |
| All weather artificial turf pitches- 3G Multi Sports surface | STM020 | £88 |
| Tarmacadam playing surfaces (sports use not playgrounds) | 33U030 | £43 |
| Crushed stone or ‘Redgra’ playing surfaces | 33U010 | £38 |
Building Use Classification
Category (1) Buildings: Main college buildings, whether of traditional or system build construction, intended for permanent use. Broadly these will comprise the following: class space and other teaching areas, assembly halls, dining halls, administrative offices, staff rooms, libraries, kitchens, music rooms, sports halls which are structurally an integral part of main college buildings, stores which are structurally integral to the main college buildings.
Category (2) Sports buildings This applies to all separate ‘dry’ sports buildings comprising of sports halls and standard ancillaries such as WCs, changing rooms, ablutions, viewing gallery and fitness rooms.
The basic sports hall cost will be applicable to most colleges akin to those found at L/A schools.
More sophisticated dry sports buildings similar to those found on University sites and LA Leisure Centres should be costed at the superior rate.
Indoor swimming pools should be costed separately as shown.
Other specialised sporting facilities not contained in buildings (e.g. tennis courts, open air swimming pools, athletics tracks) are costed as special external works, see Table above.
Category (3) Temporary Structures This category includes temporary buildings, and older hutted accommodation which has a limited life and which has not been brought up to the standard of Category (1) buildings. Buildings within this category should normally be used to provide overspill classroom accommodation, intended to have a relatively short use, and be of inferior construction/specification to those in Category 1. Typically, Category 3 buildings will be portable structures on pier foundations. Although “Horsa” and other sectional concrete constructions of similar standard are neither temporary nor easily portable, they should nevertheless be included in this category unless they have been substantially improved internally and externally and have been brought up to the standards of Category 1 buildings. This category should also include stores which are not a structurally integral part of the main college building.
The costs for all Category 1, 2 and 3 buildings are exclusive of fees and external works. They are subject to the locational adjustment factors set out in the Cost Guide.
Category (4) Living Accommodation Generally Category (4) buildings will be caretakers’ houses whilst a few colleges may provide accommodation for students. Where a hereditament is occupied partly for non-domestic and partly for domestic purposes it will be regarded as composite. The GIA of all domestic accommodation blocks should be captured and added to the valuation at the cost level in Table 1. This allows for the correct contract size adjustment calculation. The block should then have the value removed by way of a 100% percentage allowance applied in the domestic column within the NBS valuation sheet.
Category (5) Training Workshops These are stand-alone industrial type buildings generally used for the training of building or mechanical related trades.
The typical modern training workshops will be of light steel frame with PPM insulated cladding and roller shutter doors to 5m eaves and heated. Older workshops may be constructed from different materials.
The use of this type of building for partial or occasional academic instruction associated with the vocational training should not prevent the building from being considered as a training workshop.
Where significant fully fitted out classroom accommodation is present this should be segregated and valued in line with Category 1 costs. Valuer judgement should be adopted in respect of buildings/configurations that do not clearly fit in the defined categories and descriptions.
This classification should only be used to cost buildings which fall into the above descriptions. Workshops that are structurally integral to the main college building will not fall into this category and should be valued as Category 1. Buildings used for or by the estates or works departments of colleges are more likely to fall into Category 1 and/or 3 and should be valued by reference to the costs as provided above.
Category (6) Minor Buildings Small buildings such as meter houses, sheds and stores with individual Gross Internal Areas [GIA] of less than 26sq m should not be costed, as they are reflected within the addition for external works.
Appendix B
The Addition for External Works
| Classification | Site description | Percentage addition |
| Restricted Site | Town centre or island site with 90% or greater building ratio, typically with no more than a small yard or garden area, and either no car parking, or a very limited number of spaces within the hereditament. | 2% |
| As above, but typically with an 80% to 90% building ratio, limited parking, external lighting and landscaping and some boundary fencing. | 2.5% | |
| Intermediate Site | Site typically with 50% to 75% building ratio, some landscaping around buildings, secure boundary fencing, adequate staff parking, external lighting and landscaping with limited general parking within the hereditament | 5% |
| As above, but typically with 25% to 50% building ratio, landscaping around buildings, secure boundary fencing, external lighting, adequate parking within the hereditament which falls short of full requirements | 7.5% | |
| Extensive Site | Site typically with about 25% building ratio, landscaping around buildings, secure boundary fencing, external lighting and adequate parking within the hereditament for all staff and other users. | 12.5% |
Notes - 1. The plot ratio is the building GIA expressed as a percentage of the total site area (including building footprint). 2. An appropriate percentage addition should be chosen from the above ranges to reflect the extent of external works within the hereditament using plot ratio as an indicative guide only.
Appendix C
Location adjustment
N.B. The Regions referred to are administrative areas and are not significant boundaries.
| NORTH EAST REGION | NORTH WEST REGION | |||
| Durham County | 0.98 | Cheshire | 0.91 | |
| Northumberland | 1.02 | Greater Manchester | 0.91 | |
| Tees Valley | 1.01 | Lancashire | 0.91 | |
| Tyne & Wear | 0.98 | Merseyside | 0.91 | |
| Cumbria | 0.91 | |||
| YORKSHIRE & HUMBERSIDE REGION | SOUTH WESTERN REGION | |||
| East Riding and North Lincolnshire | 0.91 | Cornwall | 1.03 | |
| North Yorkshire | 0.97 | Devon | 1.01 | |
| South Yorkshire | 0.93 | Dorset | 1.03 | |
| West Yorkshire | 0.91 | Gloucestershire | 1.02 | |
| North Somerset | 1.01 | |||
| Somerset | 1.00 | |||
| Wiltshire | 1.02 | |||
| EAST MIDLANDS REGION | WEST MIDLANDS REGION | |||
| Derbyshire | 1.06 | Herefordshire | 0.91 | |
| Leicestershire and Rutland | 1.04 | Shropshire | 0.93 | |
| Lincolnshire | 1.05 | Staffordshire | 0.92 | |
| Northamptonshire | 1.10 | Warwickshire | 0.96 | |
| Nottinghamshire | 1.04 | West Midlands | 0.94 | |
| Worcestershire | 0.96 | |||
| EAST OF ENGLAND REGION | SOUTH EAST REGION (EXCL. LONDON) | |||
| Bedfordshire | 1.03 | Berkshire | 1.12 | |
| Cambridgeshire | 0.99 | Buckinghamshire | 1.11 | |
| Essex | 1.04 | East Sussex | 1.14 | |
| Hertfordshire | 1.07 | Hampshire | 1.09 | |
| Norfolk | 0.96 | Isle of Wight | 1.08 | |
| Suffolk | 0.98 | Kent | 1.13 | |
| Oxfordshire | 1.08 | |||
| Surrey | 1.17 | |||
| West Sussex | 1.12 |
| WALES | CENTRAL LONDON SOUTH | |||
| North Wales | Lambeth | 1.17 | ||
| Flintshire | 0.90 | Southwark | 1.17 | |
| Conwy | 0.94 | Wandsworth | 1.19 | |
| Denbighshire | 0.91 | |||
| Gwynedd | 0.98 | GREATER LONDON NORTH EAST | ||
| Isle of Anglesey | 0.96 | Hackney | 1.15 | |
| Wrexham | 0.93 | Haringey | 1.18 | |
| Newham | 1.08 | |||
| Mid Wales | Tower Hamlets | 1.15 | ||
| Carmarthenshire | 0.98 | Barking and Dagenham | 1.06 | |
| Ceredigion | 1.01 | Enfield | 1.08 | |
| Powys | 0.99 | Havering | 0.98 | |
| Pembrokeshire | 0.93 | Redbridge | 1.05 | |
| Waltham Forest | 1.07 | |||
| South Wales | GREATER LONDON NORTH WEST | |||
| Blaenau Gwent | 0.97 | Barnet | 1.09 | |
| Bridgend | 0.95 | Brent | 1.11 | |
| Caerphilly | 0.95 | Ealing | 1.16 | |
| Cardiff | 0.96 | Harrow | 1.06 | |
| Monmouthshire | 1.01 | Hillingdon | 1.07 | |
| Neath Port Talbot | 0.90 | Hounslow | 1.06 | |
| Newport | 0.96 | |||
| Rhondda, Cynon, Taff | 0.94 | GREATER LONDON SOUTH EAST | ||
| Swansea | 0.94 | Bexley | 1.12 | |
| Torfaen | 0.94 | Bromley | 1.09 | |
| Vale of Glamorgan | 0.98 | Croydon | 1.12 | |
| Greenwich | 1.13 | |||
| CENTRAL LONDON NORTH | Lewisham | 1.10 | ||
| Camden | 1.19 | |||
| City of London | 1.11 | GREATER LONDON SOUTH WEST | ||
| Hammersmith & Fulham | 1.18 | Kingston Upon Thames | 1.14 | |
| Islington | 1.16 | Merton | 1.13 | |
| Kensington & Chelsea | 1.23 | Richmond Upon Thames | 1.12 | |
| Westminster | 1.19 | Sutton | 1.10 | |
Appendix D
Contract Size Adjustment
The adjustment for contract size should be made having regard to the total ERC (after adjustment for location but before the addition for fees) in accordance with the following scales:
| ERC £ | % Adjustment |
| Up to 0.25 million | + 10% max |
| 0.5 million | + 8% |
| 0.75 million | +6% |
| 1.0 million | +4% |
| 1.5 million | +2% |
| 2.0 million | +1% |
| 3.0 million | ZERO |
| 4.0 million | -1% |
| 5.0 million | -2% |
| 7.0 million | -3% |
| 10.0 million | -4% |
| 15.0 million | -5% |
| 18.0 million | -6% |
| 20.0 million | -7% |
| 25.0 million | -8% |
| 35.0 million | -9% |
| Over 40.0 million | - 10.0% MAX |
| NB. Intermediate figures may be interpolated. |
Appendix E
The Addition for Professional Fees
| Estimated Replacement Cost (ERC) | Fee Level |
| Sums up to £750,000 | 14% |
| £750,000 to £1,500,000 | 13% |
| £1,500,000 to £4,000,000 | 11.5% |
| £4,000,000 to £7,500,000 | 10.5% |
| £7,500,000 to £15,000,000 | 9.5% |
| Over £15,000,000 | 9.0% |
Appendix F
Age and Obsolescence Allowances
Table 1: Civic Buildings Obsolescence Allowances
| Year of Building Completion | % Age and Obsolescence Allowance | Year of Building Completion | % Age and Obsolescence Allowance |
| 2017 | 0.00% | 1985 | 40.00% |
| 2016 | 0.75% | 1984 | 40.75% |
| 2015 | 1.50% | 1983 | 44.00% |
| 2014 | 2.50% | 1982 | 47.25% |
| 2013 | 3.50% | 1981 | 50.50% |
| 2012 | 4.75% | 1980 | 53.75% |
| 2011 | 6.00% | 1979 | 54.50% |
| 2010 | 7.25% | 1978 | 55.00% |
| 2009 | 8.50% | 1977 | 55.50% |
| 2008 | 10.00% | 1976 | 56.00% |
| 2007 | 11.25% | 1975 | 56.50% |
| 2006 | 12.75% | 1974 | 56.75% |
| 2005 | 14.25% | 1973 | 57.25% |
| 2004 | 15.75% | 1972 | 57.50% |
| 2003 | 17.25% | 1971 | 58.00% |
| 2002 | 18.75% | 1970 | 58.25% |
| 2001 | 20.25% | 1969 | 58.50% |
| 2000 | 21.75% | 1968 | 58.50% |
| 1999 | 23.25% | 1967 | 58.75% |
| 1998 | 24.50% | 1966 | 59.00% |
| 1997 | 26.00% | 1965 | 59.00% |
| 1996 | 27.50% | 1964 | 59.25% |
| 1995 | 28.75% | 1963 | 59.25% |
| 1994 | 30.00% | 1962 | 60.00% |
| 1993 | 31.25% | 1961 | 60.00% |
| 1992 | 32.50% | 1960 | 60.00% |
| 1991 | 33.75% | 1959 | 57.50% |
| 1990 | 35.00% | 1958 | 55.00% |
| 1989 | 36.00% | 1957 | 55.00% |
| 1988 | 37.00% | 1956 | 55.00% |
| 1987 | 38.00% | 1955 and earlier | 55.00% |
| 1986 | 39.00% |
Table 2 – Workshops and Stores Obsolescence Table
| Year of Building Completion | % Age and Obsolescence Allowance | Year of Building Completion | % Age and Obsolescence Allowance |
| 2017 | 0.00% | 1985 | 27% |
| 2016 | 0.50% | 1984 | 28% |
| 2015 | 1.00% | 1983 | 29% |
| 2014 | 1.50% | 1982 | 30% |
| 2013 | 2.00% | 1981 | 31% |
| 2012 | 2.50% | 1980 | 32% |
| 2011 | 3.00% | 1979 | 33% |
| 2010 | 3.50% | 1978 | 34% |
| 2009 | 4.00% | 1977 | 35% |
| 2008 | 4.50% | 1976 | 36% |
| 2007 | 5% | 1975 | 37% |
| 2006 | 6% | 1974 | 38% |
| 2005 | 7% | 1973 | 39% |
| 2004 | 8% | 1972 | 40% |
| 2003 | 9% | 1971 | 41% |
| 2002 | 10% | 1970 | 42% |
| 2001 | 11% | 1969 | 43% |
| 2000 | 12% | 1968 | 44% |
| 1999 | 13% | 1967 | 45% |
| 1998 | 14% | 1966 | 46% |
| 1997 | 15% | 1965 | 47% |
| 1996 | 16% | 1964 | 48% |
| 1995 | 17% | 1963 | 49% |
| 1994 | 18% | 1962 | 50% |
| 1993 | 19% | 1961 | 50% |
| 1992 | 20% | 1960 | 50% |
| 1991 | 21% | 1959 | 50% |
| 1990 | 22% | 1958 | 50% |
| 1989 | 23% | 1957 | 50% |
| 1988 | 24% | 1956 | 50% |
| 1987 | 25% | 1955 and earlier | 50% |
| 1986 | 26% |
Table 3: Temporary Buildings & Huts Obsolescence Allowances
| Age | % Obsolescence | Age | % Obsolescence |
| 2017 | 0.00% | 1996 | 31.50% |
| 2016 | 1.50% | 1995 | 33.00% |
| 2015 | 3.00% | 1994 | 34.50% |
| 2014 | 4.50% | 1993 | 36.00% |
| 2013 | 6.00% | 1992 | 37.50% |
| 2012 | 7.50% | 1991 | 39.00% |
| 2011 | 9.00% | 1990 | 40.50% |
| 2010 | 10.50% | 1989 | 42.00% |
| 2009 | 12.00% | 1988 | 43.50% |
| 2008 | 13.50% | 1987 | 45.00% |
| 2007 | 15.00% | 1986 | 46.50% |
| 2006 | 16.50% | 1985 | 48.00% |
| 2005 | 18.00% | 1984 | 49.50% |
| 2004 | 19.50% | 1983 | 51.00% |
| 2003 | 21.00% | 1982 | 52.50% |
| 2002 | 22.50% | 1981 | 54.00% |
| 2001 | 24.00% | 1980 | 55.50% |
| 2000 | 25.50% | 1979 | 57.00% |
| 1999 | 27.00% | 1978 | 58.50% |
| 1998 | 28.50% | 1977 | 60.00% |
| 1997 | 30.00% | Pre 1976 | By Agreement |
Table 4 External Sports Facilities Obsolescence Allowances
| Age | % Obsolescence | Age | % Obsolescence |
| 2017 | 0.00% | 1995 | 17.00% |
| 2016 | 0.50% | 1994 | 18.00% |
| 2015 | 1.00% | 1993 | 19.00% |
| 2014 | 1.50% | 1992 | 20.00% |
| 2013 | 2.00% | 1991 | 21.00% |
| 2012 | 2.50% | 1990 | 22.00% |
| 2011 | 3.00% | 1989 | 23.00% |
| 2010 | 3.50% | 1988 | 24.00% |
| 2009 | 4.00% | 1987 | 25.00% |
| 2008 | 4.50% | 1986 | 25.00% |
| 2007 | 5.00% | 1985 | 25.00% |
| 2006 | 6.00% | 1984 | 25.00% |
| 2005 | 7.00% | 1983 | 25.00% |
| 2004 | 8.00% | 1982 | 25.00% |
| 2003 | 9.00% | 1981 | 25.00% |
| 2002 | 10.00% | 1980 | 25.00% |
| 2001 | 11.00% | 1979 | 25.00% |
| 2000 | 12.00% | 1978 | 25.00% |
| 1999 | 13.00% | 1977 | 25.00% |
| 1998 | 14.00% | 1976 | 25.00% |
| 1997 | 15.00% | 1975 | 25.00% |
| 1996 | 16.00% | 1974 & earlier | 25.00% Max |
Appendix G
Multi-Storey Building Allowances
Buildings with inadequate or no passenger lifts
| Floors | Percentage Deduction |
| 2 Main Floors | Nil |
| 3 Main Floors | 5% overall |
| 4 Main Floors and above | 10% overall |
Notes for Multi Storey Allowance
-
This allowance is intended to reflect the operational difficulties of housing a college in a multi-storey building. In particular, they reflect the problems of students moving between different storeys. Where the lower floors of a building are larger than the upper floors, the valuer 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.
-
It is recognised that lift provision is rarely ideal, and normal deficiencies (such as the inability to cope fully with peak time movements of students) in the operation of multi-storey buildings will be present. It is also recognised, however, that in some instances lift provision may be inadequate to cater for the number and size of floors served and in such circumstances the allowances in Table 1 should be applied.
-
Buildings completed in 2005 and afterwards are assumed to have adequate lifts to comply with the Disability Discrimination Act and relevant Building Regulations. In the absence of evidence to the contrary, it is to be further assumed that pre-1980 buildings have inadequate or no lifts, but those completed between 1980 and 2005 have adequate lifts. In assessing the adequacy (or otherwise) of pre-2005 buildings each principal building should be considered separately and 2 lifts are to be considered adequate for a building up to an overall GIA of 6,000 m^2^, with an additional lift required for each additional 6,000 m^2^.
Appendix H
Developed & Undeveloped Land Values
Table 1 Developed Land
| Region | Developed land % of ARC |
| Central London N | 51.00% |
| Central London S | 25.50% |
| Greater London NW | 11.25% |
| Greater London SW | 29.50% |
| Greater London NE | 16.50% |
| Greater London SE | 21.00% |
| North East | 4.25% |
| North West | 9.00% |
| Yorkshire & Humberside | 8.50% |
| East Midlands | 4.25% |
| West Midlands | 7.50% |
| East of England | 14.25% |
| South East | 13.50% |
| South West | 8.25% |
| Mid & North Wales | 6.75% |
| Rest of South Wales | 9.00% |
| Cardiff | 16.25% |
The definitions of the areas referred to above can be found in the 2017 Land Value Practice Note
Table 2 Undeveloped Land Value
Amenity land values to be use by region
| Geographic Region | £ per hectare (ha) |
| Central London N | £250,000 |
| Central London S | £250,000 |
| GLNW | £250,000 |
| GLSW | £250,000 |
| GLNE | £250,000 |
| GLSE | £250,000 |
| North East | £50,000 |
| North West | £75,000 |
| Yorkshire & Humberside | £75,000 |
| East Midlands | £75,000 |
| West Midlands | £75,000 |
| East of England | £75,000 |
| South East | £100,000 |
| South West | £75,000 |
| Mid & North Wales | £30,000 |
| South Wales (excl Cardiff) | £35,000 |
| Cardiff | £40,000 |
The definitions of the areas referred to above can be found in the 2017 Land Value Practice Note.
1. Building Categories and Costs
1.1 Descriptions
Buildings occupied by Colleges of Further Education will fall into one of the five categories for valuation purposes:
Category (1) Main college buildings
Category (2) Sports buildings
Category (3) Temporary buildings
Category (4) Living accommodation.
Category (5) Training workshops.
Category (1) Buildings: Main college buildings, whether of traditional or system build construction, intended for permanent use.
Broadly these will comprise the following;
class space and other teaching areas
assembly halls, dining halls
administrative offices
staff rooms
libraries
kitchens
music rooms
sports halls in which are structurally an integral part of main college buildings
stores which are structurally integral to the main college buildings.
Category (2) Sports buildings
i. Sports Halls (Basic and Superior)
All sports halls, together with standard ancillaries. Standard ancillaries include:
WCs, changing rooms, ablutions, viewing gallery and fitness room.
The cost level given in Table 1A is appropriate for all Category 2 Sports Halls.
ii. Indoor Swimming Pools.
Other specialised sporting facilities not contained in buildings (eg. tennis courts, open air swimming pools, athletics tracks) are costed as special external works, see Table 1B.
Category (3) Temporary Structures
This category includes temporary buildings, and older hutted accommodation which has a limited life and which has not been brought up to the standard of Category (1) buildings. Buildings within this category should normally be used to provide overspill classroom accommodation, intended to have a relatively short use, and be of inferior construction/specification to those in Category 1.
Typically, Category 3 buildings will be portable structures on pier foundations. Although “Horsa” and other sectional concrete constructions of similar standard are neither temporary nor easily portable, they should nevertheless be included in this Category unless they have been substantially improved internally and externally and have been brought up to the standards of Category 1 buildings. This category should also include stores which are not a structurally integral part of the main college building.
The costs for all Category 1, 2 and 3 buildings are inclusive of fees and external works. They are subject to the locational adjustment factors set out in Table 1D.
Category (4) Living Accommodation
Generally Category (4) buildings will be caretaker’s houses. A few Colleges may provide accommodation for students; where a hereditament is occupied partly for non-domestic and partly for domestic purposes, it will be regarded as composite. When dealing with such hereditaments, it should not be assumed that any domestic accommodation is absent, but that it forms the subject of a separate and contemporaneous tenancy held by the same occupier of the remainder of the College hereditament. Account should be taken of the presence or absence of such accommodation to the extent that the value of the non-domestic part is affected.
Category (5) Training Workshops
See Appendix 1 for guidance on the identification and valuation of Category 5 buildings.
1.2 Building Costs
1.2.1 The cost guidance to be adopted for Categories 1 and 2 buildings is set out in Table 1A below. The costs specified are inclusive of external works (other than those separately costed; see para 2 below), and professional fees. The costs in Table 1A are subject to adjustment for location, by reference to the location factors set out in Table 1D.
COMBINED OBSOLESCENCE ALLOWANCE & BUILD QUALITY ALLOWANCE
TABLE 1A
| Date Pre 1956 | £558 | Cat 2 Sports Hall £426 | Cat 2 Indoor Pool £626 |
| 1956 | £551 | £426 | £626 |
| 1957 | £546 | £426 | £626 |
| 1958 | £511 | £426 | £626 |
| 1959 | £521 | £426 | £626 |
| 1960 | £529 | £426 | £626 |
| 1961 | £531 | £426 | £626 |
| 1962 | £532 | £426 | £626 |
| 1963 | £533 | £426 | £626 |
| 1964 | £534 | £426 | £626 |
| 1965 | £535 | £419 | £615 |
| 1966 | £536 | £429 | £630 |
| 1967 | £538 | £439 | £645 |
| 1968 | £532 | £449 | £660 |
| 1969 | £533 | £460 | £675 |
| 1970 | £534 | £470 | £690 |
| 1971 | £534 | £481 | £706 |
| 1972 | £536 | £491 | £721 |
| 1973 | £545 | £502 | £737 |
| 1974 | £584 | £513 | £753 |
| 1975 | £627 | £524 | £769 |
| 1976 | £652 | £538 | £796 |
| 1977 | £674 | £552 | £823 |
| 1978 | £695 | £567 | £850 |
| 1979 | £750 | £581 | £878 |
| 1980 | £805 | £596 | £906 |
| 1981 | £850 | £611 | £935 |
| 1982 | £860 | £626 | £964 |
| 1983 | £872 | £642 | £994 |
| 1984 | £918 | £657 | £1,024 |
| 1985 | £929 | £673 | £1,055 |
| 1986 | £941 | £689 | £1,080 |
| 1987 | £953 | £705 | £1,105 |
| 1988 | £976 | £722 | £1,131 |
| 1989 | £1,020 | £738 | £1,157 |
| 1990 | £1,034 | £755 | £1,183 |
| 1991 | £1,046 | £767 | £1,197 |
| 1992 | £1,058 | £785 | £1,226 |
| 1993 | £1,071 | £804 | £1,256 |
| 1994 | £1,083 | £824 | £1,285 |
| 1995 | £1,095 | £842 | £1,319 |
| 1996 | £1,106 | £851 | £1,333 |
| 1997 | £1,118 | £860 | £1,348 |
| 1998 | £1,130 | £870 | £1,362 |
| 1999 | £1,143 | £879 | £1,377 |
| 2000 | £1,154 | £888 | £1,392 |
| 2001 | £1,161 | £893 | £1,399 |
| 2002 | £1,167 | £898 | £1,406 |
| 2003 | £1,271 | £902 | £1,414 |
| 2004 | £1,277 | £907 | £1,421 |
| 2005 | £1,442 | £912 | £1,428 |
| 2006 | £1,449 | £916 | £1,436 |
| 2007 | £1,456 | £921 | £1,443 |
| 2008 | £1,464 | £926 | £1,450 |
| 2009 | £1,471 | £930 | £1,458 |
| 2010 | £1,625 | £935 | £1,465 |
In the case of indoor swimming pools the above costs may be increased by up to 15% for facilities of better specification, including superior changing facilities, showers and toilets.
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.
Hereditaments constructed post 2010 should be costed having regard to their actual costs adjusted to AVD. Post 2010 extensions and new buildings to existing hereditaments should be similarly treated if the post 2010 buildings comprise the majority of the hereditament by GIA. In all other circumstances post 2010 buildings should be costed at the 2010 level.
1.2.2 For Category 3 Buildings the following costs should be applied (subject to the location factors in Table 1D), without further distinction as to age:
| Adjusted £/m2 Category 3 | Adjusted £/m2 Category 3 | ||
| Date | Temp, no WC | Temp, with WC | |
| Pre 1995 | 341 | 398 | |
| 1995 –1999 | 487 | 572 | |
| 2000 – 2002 | 557 | 654 | |
| 2003 Onwards | 587 | 685 |
Temporary buildings fitted out as laboratories with additional services may be costed at a higher rate at valuers’ discretion.
1.2.3 For Category 5 Buildings see Appendix 1.
2. Costs of Special External Features
All external works are reflected in the costings set out in Table 1A, except for:
open-air or plastic-covered swimming pools
tennis courts
minor buildings used for specific sports
athletics tracks
other specialised sports surfaces (but not those regularly used as playgrounds other than for organised sport).
The costs, including professional fees, appropriate for these features are set out in Table 1B and are subject to the location factors in Table 1D.
TABLE 1B
open air swimming pool (“in ground”) £846 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 to £960 per sq m;
tennis courts (grass or hard) £17000 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 £9000 per floodlighting column.
Tarmacadam playing surface (dedicated sports use - not playgrounds) £28 per sq m.
Crushed stone or “Redgra” playing surface £20.00 per sq m
These costs include professional fees and any external costs which are part of these facilities.
It will be appropriate to consider allowances for obsolescence in respect of some of these features, although no allowance will normally be appropriate in respect of Tarmac, crushed stone, or “Redgra” surfaces. Judgement must be made having regard to their condition. For other features mentioned above, the age related scale set out in Appendix 2, paragraph (a) should be adopted. The scale provides for a maximum 25% allowance but this may be exceeded for swimming pools over 30 years old which have not been refurbished during that period.
Table 1C
The age related scale set out in Table 1A incorporates all appropriate allowances for obsolescence in buildings. An allowance of 28.6% should be made to the costs of Sports Halls without changing facilities.
For other sports facilities in table 1B (excluding tennis courts, Tarmacadam, crushed stone or Redgra surfaces), the following scale is intended to provide a degree of uniformity of allowance. These allowances may be exceeded in the case of swimming pools over 30 years old which have not been refurbished during that period.
| Year of completion | % allowance | Year of completion | % allowance | |
| 2010 | 0 | 1995 | 10 | |
| 2009 | 0.5 | 1994 | 11 | |
| 2008 | 1 | 1993 | 12 | |
| 2007 | 1.5 | 1992 | 13 | |
| 2006 | 2 | 1991 | 14 | |
| 2005 | 2.5 | 1990 | 15 | |
| 2004 | 3 | 1989 | 16 | |
| 2003 | 3.5 | 1988 | 17 | |
| 2002 | 4 | 1987 | 18 | |
| 2001 | 4.5 | 1986 | 19 | |
| 2000 | 5 | 1985 | 20 | |
| 1999 | 6 | 1984 | 21 | |
| 1998 | 7 | 1983 | 22 | |
| 1997 | 8 | 1982 | 23 | |
| 1996 | 9 | 1981 1980 & before | 24 25 |
3. Location Factors
The costs in Tables 1A and 1B, the costs for category 3 buildings in para 1.2.2 above, and the costs for category 5 buildings in Appendix 1 are all subject to locational adjustment by application of the factors shown in Table 1D below:
TABLE 1D
Costs should be locationally adjusted in accordance with the R2010 Cost Guide recommendations.
4. Allowances
4.1 Obsolescence and build quality
An allowance for obsolescence may be appropriate for other sports features (see those listed in Table 1B in paragraph 2 above) Obsolescence allowances may be appropriate for Category 5 buildings (see Appendix 1).
4.2 Multi-storey Buildings
The following 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 2.5%
4 storeys 10%
5 to 7 storeys 17.5%
8 storeys or more 22.5% for 8th floor and above, 17.5% for lower floors.
These allowances are intended to reflected the operational difficulties of housing a college 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.
4.3 Overcapacity
Overcapacity allowance is quantified as a “Stage 2” allowance in the Local Authority Schools Practice Note. This method of quantifying overcapacity applies exclusively to such schools and cannot be applied to Colleges of Further Education. An allowance for overcapacity at a College of Further Education may be appropriate, but only if overcapacity can be properly demonstrated.
5. Land Value
Land within the hereditament is to be valued in two categories.
a. developed land consisting of the footprint of all buildings, associated landscaped areas, roadways, car parks and hardstandings, paths, hard sports surfaces and open air swimming pools.. It will normally consist of the whole site of the college, less playing fields.
The value of this category of land will be taken as a percentage of total aggregate adjusted replacement cost, net of any allowances made in accordance with para 4 above. The percentages are set out in Table 2.
b. Undeveloped land will consist of the area of playing fields together with any associated landscaping, but excluding the footprint of any associated buildings and specialised sports surfaces eg all-weather surfaces, tennis courts and open-air pools. Areas which are of no practical use (eg shelter belts and steeply sloping banks) should be ignored.
Advice on undeveloped land value is provided in Table 2.
Table 2
Site Values
A: Developed Land
The following percentages should be added to adjusted costs of all buildings and special external features, as representing developed land value:
| Location | Urban | Rural |
| Inner London | 25% | N/A |
| Outer London | 20% | 15% |
| M25 Belt | 17.5% | 10% |
| Remainder of South East | 11.25% | 6.25% |
| Remainder of England & Wales | 9% | 5% |
For the purposes of the above table:
a) Inner London should be taken to include the London Boroughs of Hammersmith & Fulham, Camden, Islington, Hackney, Tower Hamlets, Greenwich, Lewisham, Lambeth, Southwark, Wandsworth, the Royal Borough of Kensington & Chelsea and the Cities of London and of Westminster
b) Outer London should be taken to be the remaining London Boroughs
C) The M25 Belt should be taken to be the whole county of Surrey, plus Windsor & Maidenhead, Slough, Wokingham, Bracknell Forest, South Bucks, Chiltern, Reading, Oxford (City), Cambridge (City), Dacorum, Three Rivers, Watford, St Alban’s , Hertsmere, Welwyn/Hatfield , E Herts, Broxbourne, Epping Forest, Brentwood, and Sevenoaks
D) The Rest of South East consists of those parts of the counties of Kent, East Sussex, West Sussex, Hants (exc Isle of Wight), Berks, Bucks, Oxon, Herts, Beds, and Essex,( to the extent that they exclude the BAs listed as in the M25 belt), plus Bournemouth, Poole and Christchurch
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) 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 should be designated rural. While shading between the rural and urban percentages is permitted for Colleges sited on the urban fringe, it should only be applied where the developed land within the College hereditament falls within an area where alternative development would not be likely to be permitted.
Other criteria to be used in determining whether to adopt an “urban” or “rural” percentage are:
a) The proximity of public transport
b) Catchment issues, including whether the premises were originally built as a secondary school or a technical college.
Typical examples of rural colleges are:-
a) Llandrillo, Colwyn Bay
b) South Downs, Waterlooville
A typical example of an urban college is:-
St Vincent, Gosport
B: Undeveloped Land
Undeveloped land (the site of playing fields, but excluding the sites of any Category 1, 2 or 3 buildings, open air pools, tennis/squash courts and specialised sports surfaces):
Adopt amenity/sportsfield value - typical range per hectare :
| Greater London area zone 2 (Greater London excluding zones 1 and 3) | £175,000 per hectare |
| Greater London area zone 3 (within 4 miles of 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 |
North East consists of Northumberland, Tyne & Wear, Durham and Cleveland.
6. Decapitalisation:
The adjusted cost, net of allowances, and including land value, is to be decapitalised at the lower prescribed rate.
7. Stage 5 End Allowances:
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, eg. 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.
A reduction of decap rate x £281 psm of roof ‘foot print’ should be made to the value of pre 1960 and post 1980 buildings with traditional flat,timber & truss decked, felt covered roofs (decap rate x£140 psm foot print for flat roofs with other coverings).
No allowance should be made for flat roofs of post 2004 buildings unless of traditional flat, timber & truss decked, felt construction.
Allowances may be made for exceptional dispersal, bad layout, piecemeal development, etc. Consideration must be given to the inherent qualities of this property class. It is common for educational institutions to comprise buildings which are physically separate and only in those exceptional cases where this characteristic leads to actual identification of operational disadvantage/expense should any end allowance be considered. In considering these points the presence or effects of any Category (4) (domestic) buildings should not be discounted.
Where the hereditament includes few roads and paths and lacks car parking an end allowance may be appropriate.
Where colleges are located on split sites, no allowance should be made if the decision to operate in this way was made after AVD (unless consequential with physical changes in the locality). Where a split site college was operating as at the AVD, a deduction may be appropriate if the split site causes identifiable operational disadvantage/expense.
The maximum allowance must not exceed 15% for a combination of the worst features, excluding any flat roof allowance.
Appendix 1
Category 5 buildings are Industrial type buildings used as Workshops for Training. The use of this type of building for partial or occasional academic instruction associated with the vocational training should not prevent the building from being considered as Category 5.
An illustrative description of the main characteristics of a modern Category 5 building is:
Light steel frame, 100mm brickwork infill to 1.0m height, profile 6 corrugated sheet cladding above. Translucent sheet glazing. Electric power, water toilets. Central heating. Such buildings are likely to have been built after 1975.
Older workshops may be constructed from different materials. Where it can be established that the modern replacement for older buildings used for this sort of vocational training would fall within the above description then they may be considered Category 5. Otherwise, they will fall within Category 1.
This Appendix should only be used to cost buildings which fall into the above descriptions. It is unlikely that buildings used for or by the Estates or Works Departments of Colleges are Category 5. It is more likely that they will fall into Category 1 and/or 3 and should be valued by reference to the costs as provided in Table 1A of Practice Note 1: 2010.
Post 2010 Cat 5 buildings have evolved and often include more teaching classrooms, with a higher specification than the older Cat 5 buildings. The two uses within such buildings (a) technical training and (b) academic training should be segregated and valued accordingly. The unit costs for pre 2010 Category 5 and post 2010 category 5(a) buildings are set out below, while post 2010 category 5(b) should be costed as category 1 buildings, see table 1A.:
1. Unit Costs
| Single Storey | Double Storey |
| £ 585 per sm | £ 525 per sm |
The above costs should be adjusted to reflect the variations in construction and finish described below:
| Additions | Deductions | ||
| Eaves height in excess of 3m where no suspended ceiling: | 2% of cost per 0.5m ht | No insulation: 7.5% | |
| Tiled roof: | 3% | No central heating: 12.5% | |
| Suspended ceiling: | 3% | ||
| Quarry tiled floors: | 5.5% | ||
| Terrazzo floors: | 9% |
2. Location Factor
Costs specified in this Appendix are to be adjusted by the appropriate Location Factor specified in Table 1D.
3. Obsolescence
The age related scale set out below incorporates all appropriate allowances for obsolescence in Category 5 buildings.
Year of completion
allowance
| Year of completion | % allowance | Year of completion | % allowance | |
| 2010 | 0 | 1989 | 16 | |
| 2009 | 0.5 | 1988 | 17 | |
| 2008 | 1 | 1987 | 18 | |
| 2007 | 1.5 | 1986 | 19 | |
| 2006 | 2 | 1985 | 20 | |
| 2005 | 2.5 | 1984 | 21 | |
| 2004 | 3 | 1983 | 22 | |
| 2003 | 3.5 | 1982 | 23 | |
| 2002 | 4 | 1981 | 24 | |
| 2001 | 4.5 | 1980 | 25 | |
| 2000 | 5 | 1979 | 26 | |
| 1999 | 6 | 1978 | 27 | |
| 1998 | 7 | 1977 | 28 | |
| 1997 | 8 | 1976 | 29 | |
| 1996 | 9 | 1975 | 30 | |
| 1995 | 10 | 1974 | 31 | |
| 1994 | 11 | 1973 | 32 | |
| 1993 | 12 | 1972 | 33 | |
| 1992 | 13 | 1971 | 34 | |
| 1991 | 14 | 1970 | 35 | |
| 1990 | 15 | 1969 | 36 | |
| 1968 | 37 | |||
| 1967 | 38 | |||
| 1966 | 39 | |||
| 1965 | 40 | |||
| 1964 | 41 | |||
| 1963 | 42 | |||
| 1962 | 43 | |||
| 1961 | 44 | |||
| 1960 | 45 | |||
| pre 1960 | 45-50 |