Private and independent schools
Source: gov.uk (2025-04-28)

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 (https://www.gov.uk/guidance/rating-manual-section-6-part-3-valuation-of-all-property-classes/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
5. Legal framework

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 (https://www.gov.uk/guidance/rating-manual-section-3-valuation-principles/part-2-material-change-of-circumstances-inclucing-mode-or-category) 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 (https://www.gov.uk/guidance/rating-manual-section-3-valuation-principles/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:
- 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
- ii) ablution facilities used exclusively by boarders (other than in sports changing rooms)
- iii) locker rooms used exclusively by boarders for storage of personal effects
- 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
- v) laundries, unless also serving premises outside the hereditaments
- vi) kitchens and dining rooms when serving only boarders and resident staff
- vii) staff accommodation
The following should be regarded as non-domestic property:
- i) classrooms
- ii) laboratories
- iii) libraries (except where situated in boarding houses and used exclusively by boarders for recreational purposes)
- iv) assembly halls etc.
- v) workshops and maintenance areas
- vi) sports halls (but see below for exceptions)
- vii) study rooms/common rooms used exclusively by “day” pupils
- viii) chapels
- ix) sanatoria/sick bays (provided that a substantial element of treatment and/or care is given)
- x) gymnasia
- 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: 2023 - private and other independent schools

1. Market Appraisal

1.1 Public and Independent Schools

Public and Independent (P and 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.

Increasingly P and I schools are being operated by private limited companies. Some of these companies run multiple schools. Many of them are held freehold, but some are believed to be held on leases with at arm’s length rents.

New private schools have been opened to offer an independent education in locations where there is demand. This demand may come from a particular niche in the schools market such as to cater for particular religions or educational ethos.

1.2 Free schools

The first Free schools were created in 2011 following the introduction of the 2010 Academies Act. As at 1/4/2021 there were circa 560 Free schools open with many more approved.

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. These providers are not allowed to make a profit.

The schools, usually new institutions, are established as academies and are independent of local authorities. Unlike local authority run schools, they do not have to follow the national curriculum and have greater 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.

2. Changes from the 2017 Practice Note

The contractor’s approach remains broadly the same as the 2017 Memorandum of Agreement with updated Stage 1 costs, Stage 2 allowances and Stage 3 land values.

There is no longer a distinction drawn between urban and rural schools in regard to the application of site value at Stage 3 of the valuation. Flat roof allowances have been modified.

Residential buildings should now be captured and entered into the valuation. A new category 5 costing has been added.

3. Ratepayer Discussions

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

4. Valuation Scheme

As for the 2017 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.

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 weighted before determining that a rentals approach is not appropriate.

The majority of P and I and Free schools will be assessed by reference to the contractor’s basis.

4.1 Contractor’s Basis

4.1.1 Stage 1 - Estimated Replacement Cost (ERC)

(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 5 types. These are defined in Appendix A.

The costs to be applied to the various building types are shown in Appendix A Table 1 and are exclusive of external works and fees.

Different costs are to be applied to the category (1) buildings at most P and I schools to those to be applied to Free schools.

The costs to be applied to special external features (specialised sports facilities) are shown in Appendix A Table 2.

The costs shown in this section are for ease of reference. In all cases where a cost guide code is shown that must be input into the Non Bulk Server (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) 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 the 2023 VOA Cost Guide and replicated in 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 the guidance given in the 2023 VOA Cost Guide. Note the addition of the complexity premium of 2% is applicable and minimum fees may apply to avoid inversion. For convenience the fee table is reproduced in Appendix E.

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 school 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 school 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. 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 and safety, fire or building regulations that preclude or limit the original purposes of the building
- dated design practices that restrict modern usage (such as lack of/or minimal floor and ceiling voids)
- the absence of modern space heating or air conditioning systems within a building
j) It follows that only where buildings display specific functional deficiencies or issues of technological redundancy, that are atypical for their age, 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.

Note that external sports facilities such as artificial playing surfaces and associated lighting should apply the external sports obsolescence scale. The valuation template automatically directs these facilities to the appropriate scale which can be found in the VOA Rating Manual Section 4 Part 3 - The contractor’s basis of valuation.

Multi-Storey Allowances
- the allowances set down in Appendix G 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 floors. 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
- note the separate scale of allowances within Appendix G applicable to schools situated within the following postcodes of Central London (EC & WC, W1, W2, W11, W8, SW1, SW3, SW5, SW7 and SW10 Postal Districts).
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. The allowances are as follows:
- £80m2 adjusted replacement cost (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 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 excluding 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 Table 1.

(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 be taken as the appropriate level for amenity land as stated in 2023 Land Value Practice Note also shown in Appendix H Table 2.

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 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 2023 Rating List.

4.1.5 Stage 5 End Adjustment
- 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. For example, 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.
- Allowances under this heading may be made for appropriate relevant matters including poor site layout, dispersal, piecemeal development, superfluity (see below), split sites (see below) and fragmentation leading to operational difficulties. Allowances may also 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.
(i) Split Sites

It will be unlikely that schools operating over split sites form a single hereditament. Where this is encountered the unit of assessment should be reviewed in light of the Supreme Court decision in Woolway (VO) v Mazars (2015) RA 373 and The Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018. In rare instances where two or more distinct geographical sites are determined to form a single hereditament through the functional test, then an end allowance may be appropriate if the split site causes identifiable operational disadvantages.

Consideration of an end allowance should be made to the actual hereditament vacant and to let. The concerns of actual occupiers and landlords are disregarded in favour of the characteristics that would affect the likely or hypothetical landlord or tenant. Thus issues regarding schools that operate on split sites that form separate hereditaments should be disregarded unless there are key facilities lacking that

(ii) 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.

The VOA does not consider it appropriate to use design size criteria from the Local Authority school sector to determine superfluity in P&I schools.

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.

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.

All cases should be considered on merit with difficulties referred to the CCT.

(iii) 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 or if not yet incurred, a fully costed maintenance programme is in place. 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%.

(iv) 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.

4.1.6. The Addition for Holiday Accommodation/Letting

Where living accommodation is used for holiday/conference purposes 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 I.

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 Table 1 are 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 1.

Category 3 Temporary Structures

This category includes temporary buildings, and older hutted accommodation which has a limited life and which have not been brought up to the standard of Category 1 buildings. Buildings within this category should normally be used to provide overspill classroom accommodation, be intended to have a relatively short term 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 these are buildings employed for the following uses:
- garages
- groundsman’s stores
- maintenance stores and maintenance workshops
- basic changing huts
Note: Hutted pavilions are 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.

Category 5 Residential/Boarding Accommodation

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.

In most cases the school or representative should be able to provide the appropriate survey details to ascertain the domestic element. However, exceptionally, where full records of the domestic parts are genuinely not available then it may be appropriate to apply the following workaround to ensure the contract size adjustment fully reflects the notional costs of the entire hereditament. Firstly, ascertain from the school the GIA of the buildings for the entire hereditament, secondly deduct the GIA of the non-domestic buildings to arrive at the differential which will represent the GIA of the domestic parts. This can then be added to the valuation as a line entry costed at the domestic rate before being given 100% domestic status and excluded from the remaining valuation process.

Where the above approach is taken, the valuation should be annotated accordingly. It should be emphasised that this workaround should not become the norm and that full disclosure of differing survey details should be provided in most cases.

Building Costs – Table 1

External Sports Facilities -Table 2

Appendix B

The Addition for External Works

Appendix C

Location adjustment

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

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:

NB. Intermediate figures may be interpolated.

Appendix E

The Addition For Professional Fees

Fees should be added at the percentages shown in the 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.

Appendix F

Age and Obsolescence Allowances

Table 1: Civic Buildings Obsolescence Allowances

Table 2 – Industrial Buildings Obsolescence Table

Table 3 - Temporary Buildings Obsolescence Table

Table 4 External sports facilities obsolescence allowances

Appendix G

Multi-Floor Allowances
- Central London* in this context denotes the following Postal Districts only: EC & WC, W1, W2, W11, W8, SW1, SW3, SW5, SW7 and SW10. Note this differs from the Central London boundary for developed land.
Appendix H

Developed and Undeveloped Land Values

Table 1 Developed Land

Table 2 Undeveloped Land

Amenity Land Values To Be Used By Region

Appendix I

Holiday/Conference Use of Boarding Accommodation

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 bed nights are notified, the following rates per bed night should be applied to the number of additional bed nights notified. For the avoidance of doubt it is all the bed nights which must be included not solely the additional bed nights over 500.

3) Deduct the appropriate obsolescence allowance (if any).

4) Where the living accommodation remains in the Rating List 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) produces 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, then use the following formula:

(number of bed nights x 365) / (number of days used for letting)

This should be applied to the relevant bed night 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: 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.

Increasingly P&I schools are being operated by private limited companies. Some of these companies run multiple schools. Many of them are held freehold, but some are believed to be held on lease at arm’s length rents.

New private schools have been opened to offer an independent education in locations where there is demand. This demand may come from a particular niche of the schools market such as to cater for particular religions or educational ethos.

1.2 Free schools

The first Free schools were created in 2011 following the introduction of the 2010 Academies Act. 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. These firms are not allowed to make a profit.

The schools, which are usually new institutions, are established as academies and are independent of local authorities. Unlike local authority run schools, they are exempt from teaching the national curriculum and have greater 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.

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 that align with the revised cost basis for LA 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 Stage 2 Obsolescence allowances and Guidance Notes for school buildings have been revised

residential buildings should be now be captured and entered into the valuation. A new category 5 costing has been added - see Appendix A

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

Full discussions have taken place with representatives of the independent school sector namely Beattie Partnership, Avison Young and Gerald Eve as part of the Group Pre Challenge Review (GRCR) 34028224. The agreed scheme relates to those independent schools valued on the contractor’s basis only but not to Free Schools which were not discussed.

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.

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

The majority of P&I and Free schools will be assessed by reference to the contractor’s basis.

4.1 Contractor’s Basis

4.1.1 Stage 1 - Estimated Replacement Cost

(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 5 types. These are defined in Appendix A.

The costs to be applied to the various building types are shown in Appendix A Table 1 and are exclusive of external works and fees.

Different costs are to be applied to the category (1) buildings at most P&I schools to those to be applied to Free schools.

The costs to be applied to special external features (specialised sports facilities) are shown in Appendix A Table 2.

The costs shown in this section are for ease of reference. In all cases where a cost guide code is shown that must be input into the Non Bulk Server (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) 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 school 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 school 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

the allowances set down in Appendix G 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 floors. 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

note the separate scale of allowances within Appendix G applicable to schools situated within the following postcodes of Central London (EC & WC, W1, W2, W11, W8, SW1, SW3, SW5, SW7 and SW10 Postal Districts)

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.

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 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

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. For example 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

allowances under this heading may be made for appropriate relevant matters including poor site layout, dispersal, piecemeal development, superfluity (see below), split sites (see below) 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

(i) Split Sites

It will be unlikely that schools operating over split sites form a single hereditament. Where this is encountered the unit of assessment should be reviewed in light of the Supreme Court decision in Woolway (VO) v Mazars (2015) RA 373 and The Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018. In rare instances where two or more distinct geographical sites are determined to form a single hereditament through the functional test, then an end allowance may be appropriate if the split site causes identifiable operational disadvantages.

Consideration of an end allowance should be made to the actual hereditament vacant and to let. The concerns of actual occupiers and landlords are disregarded in favour of the characteristics that would affect the likely landlord or tenant bid. Thus issues regarding schools that operate on split sites that form separate hereditaments should be disregarded subject to the lack of key facilities that render the subject site deficient.

(ii) 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. The VOA does not consider it appropriate to use design size criteria from the Local Authority school sector to determine superfluity in P&I schools.

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.

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.

All cases should be considered on merit with difficulties referred to the CCT.

(iii) 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 or if not yet incurred, a fully costed maintenance programme is in place. Evidence in support of this contention must be provided prior to the commencement of any discussions.

When considering accounts for this purpose, expenditure on improvements should be ignored but any grants should be taken into account. Any allowance will be confined to the specific buildings in question.

(iv) 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.

4.1.6. The Addition for Holiday Accommodation/Letting

Where living accommodation is used for holiday/conference purposes 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 I.

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 Table 1 are 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 1

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, be 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 these are buildings employed for the following uses:
- Garages
- Groundsman’s stores
- Maintenance stores and maintenance workshops
- Basic changing huts
Note: Hutted pavilions are 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.

Category 5 Residential/Boarding Accommodation

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 the appropriate percentage applied in the domestic column within the NBS valuation sheet.

In most cases the school or representative should be able to provide the appropriate survey details to ascertain the domestic element. However, exceptionally where full records of the domestic parts are genuinely not available then it may be appropriate to apply the following workaround to ensure the contract size adjustment fully reflects the notional costs of the entire hereditament. Firstly ascertain from the school the GIA of the buildings for the entire hereditament, secondly deduct the GIA of the non-domestic buildings to arrive at the differential which will represent the GIA of the domestic parts. This can then be added to the valuation as a line entry costed at the domestic rate before being given 100% domestic status and excluded from the remaining valuation process.

Where the above approach is taken the valuation should be annotated accordingly. It should be emphasised that this workaround should not become the norm and that full disclosure of differing survey details should be provided in most cases.

Category

£/m2 GIA

Cost Guide Code

Remarks

Category 1 Buildings –P&I Schools

1775

N/A

Category 1 Buildings –Free schools

1650

N/A

Category 2 -Sports Halls

1011

1470

42AC02 STF020

Basic

Superior

Category 2- Indoor Swimming Pools

2089

STD020

Category 3-Temporary building (without w/c)

619

42AC04

Location Factors do not apply to temporary buildings

Category 3-Temporary building (with w/c)

709

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 de-minimis

Category 5 – Residential blocks

1326

To include boarding, staff and caretaker accommodation

External Sports Facilities - Table 2

Description

Cost

Cost Guide reference

Open air swimming pools

In ground

£1,275/m2 water area

63Z00T

Over ground (prefabricated)

£1,000/m2 water area

63Z00Y

Insulated corrugated plastic roofing over open air pools

£364/m2

63Z00S

Hard surface sportsArea (tarmacadam) below 6,000m2 (Dedicated for sports-not playgrounds.)

£42/m2

33U030

Hard surface sportsArea (tarmacadam) above 6,000m2 (Dedicated for sports-not playgrounds.)

£30/m2

33U025

All weather surfaces

Astroturf

£65/m2

STK020

3G playing surface

£88/m2

STM020

Water based hockey pitches

£106/m2

STL020

Crushed stone or “Redgra” playing surface

£38/m2

33U010

Sports fields (grass)

£60,195/hectare

33U00G

Tennis courts (hard)

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

53U30A, F or P and 53U40A, F, K or P

Tennis courts (grass)

£30,970 per court. Add for fencing

33U00K. Fencing 33U2K5 or 33U2KA

Squash courts

£1,268/m2

STS033

Running tracks

6 lane synthetic

£435,087 Per track

63P00A

8 lane synthetic

£592,321 Per track

63P00C

6 lane hard porous water bound surface

£279,623 Per track

63P00D

6 lane hard porous water bound surface

£374,343 Per track

63P00E

2 lane synthetic (with 4 lane home)

£190,954 Per track

63P00L

Lighting

AWP lighting columns

Depends on specification. Select from Cost Guide

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

Pitch flood lighting

£63,000

£59,000

£59,000

Hockey STJ020

Football STH020

Rugby STI020

Canopies

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

N/A

Appendix B

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 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-floor allowances

Number of storeys

Allowance – All locations except Central London*

Allowance – Central London*

1 to 2

Nil

Nil

3

5%

5%

4

10%

10% overall on 4 or more storeys

5 to 7

17.5%

8 storeys or more

8th Floor and above 22.5%or Below 8th Floor 17.5%
- Central London* in this context denotes the following Postal Districts only: EC & WC, W1, W2, W11, W8, SW1, SW3, SW5, SW7 and SW10. Note this differs from the Central London boundary for developed land.
Appendix H

Developed & Undeveloped Land Values

Table 1 Developed Land

Developed land % of ARC

P&I Schools

P&I Schools

Free Schools

Free Schools

% (Urban)

% (Rural)

% (Urban)

% (Rural)

Central London N

48.00%

N/A

81.50%

N/A

Central London S

21.75%

N/A

35.00%

N/A

Greater London NW

11.75%

N/A

12.75%

N/A

Greater London SW

36.75%

N/A

40.00%

N/A

Greater London NE

17.75%

N/A

19.00%

N/A

Greater London SE

22.00%

N/A

23.50%

N/A

North East

3.75%

1.88%

3.75%

1.88%

North West

8.00%

4.00%

8.25%

4.13%

Yorkshire & Humberside

7.00%

3.5%

7.00%

3.50%

East Midlands

3.75%

1.88%

3.75%

1.88%

West Midlands

6.75%

3.38%

6.75%

3.38%

East of England

12.75%

6.38%

13.00%

6.50%

South East

12.00%

6.00%

12.50%

6.25%

South West

8.50%

4.25%

8.75%

4.38%

North Wales

5.50%

2.75%

5.75%

2.88%

South Wales

7.25%

3.63%

7.50%

3.75%

Cardiff

18.25%

9.13%

18.75%

9.38%

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.

Appendix I

Holiday/Conference Use of Boarding Accommodation

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 bed nights are notified, the following rates per bed night should be applied to the number of additional bed nights notified. For the avoidance of doubt it is all the bed nights which must be included not solely the additional bed nights over 500.

Accommodation

England Price Per Bed night

Wales Price Per Bed night

Non en-suite accommodation

£2.68

£2.40

En-suite accommodation

£3.11

£2.78

3) Deduct the appropriate obsolescence allowance (if any).

4) Where the living accommodation remains in the Rating List 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, then use the following formula:

(number of bed nights x 365) / (number of days used for letting)

should be applied to the relevant bed night price, in order to produce the appropriate rateable value to be entered in the Rating List for the duration of the holiday/conference use.