Skating rinks and skateboard parks
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

This instruction applies to all skating rinks and skateboard parks.

Ice rinks that form part of a larger multi-use property should be valued in accordance with the instructions that apply to that particular class of property.

2. List Description and Special Category Code

2.1 Ice Rinks

List description LX “Ice rink and premises”

SCAT Code 140 S

2.2 Roller Skating rinks and skateboard parks

List description LX “Roller skate park and premises” or “Skateboard park and premises”

SCAT code 239 S or G

3. Responsible Teams

National Valuation Unit (NVU) Specialist leisure class coordination team will be responsible for overseeing this class of property. Skateboard parks and smaller roller skating rinks may be the responsibility of RVU.

4. Co-ordination

4.1 The specialist leisure class co-ordination team has overall responsibility for the co-ordination of these classes. The team are responsible for the approach to and accuracy and consistency of valuations. The team will deliver practice notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating lists. 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. Legal Framework

No specific restrictions are believed to exist for ice rinks.

A skateboard park may be exempt if it is, or is situated within, a public park.

Where part of a park is reserved for the purpose of sport or recreation and the use is granted to a club or person to the exclusion of the public, this part is not exempt and will be assessed, (See Blake (VO) v Hendon Corporation (No 2) (CA) 1965 RA 67).

6. Survey Requirements

Ice and roller skating rinks and skateboard parks should be measured to gross internal area (GIA) in accordance with the Valuation Office Code of Measuring Practice for Rating Purposes in England and Wales.

The actual rink area should be shown separately.

The survey should also note the following information:

Type of premises, age, construction, quality, costs of building/conversion, services, details of spectator areas, type/extent and quality of ancillary facilities, parking, location, transport links, competing or complimenting leisure attractions in the area, etc.

7. Survey Capture

In all cases plans and surveys should be stored in the property folder of the Electronic Document Records Management (EDRM) system.

8. Valuation Approach

8.1 Rental method

Given sufficient evidence, the rental method forms the best approach to the valuation.

Where a rent relates to a “shell” of a building, care must be taken to ensure that adaptations are properly taken into account.

Ice rinks - rental evidence should be analysed in terms of a percentage of gross receipts and a price per m2 of the ice pad.

Roller skating rinks - rental evidence should be analysed in terms of a percentage of gross receipts and a price per m2 of the whole building.

Skateboard parks – rental evidence should be analysed in terms of a price per m2.

Where rents have been analysed in terms of gross receipts, then a percentage of known or estimated receipts for any other rink may provide a useful method of comparison.

Except for the largest fully commercial roller-skating rinks the preferred method of valuation is by using a price per m2.

Any skate parks (which are not exempt being part of a public park) should be valued having regard to any available local evidence, and comparisons to sports grounds/sports pitches may be appropriate if there is no direct evidence available. The valuation will need adjustment for the presence of ramps, jumps, bowls etc that are permanent structures, rather than temporary (and thus removable) items.

8.2 Receipts and expenditure approach

In the absence of reliable rental information, a full receipts and expenditure valuation should be undertaken and detailed accounts for at least the three previous years should be requested. Grants towards running costs should be considered where they are receivable on a continuing basis.

The motive of operation is not always to make a profit.

Many local authorities now provide ice rinks, and especially skateboard parks, some of which are known to operate at a loss. Local authority accounts must be considered very carefully, especially where there is evidence of the private sector running an ice rink apparently profitably, and perhaps sufficiently as to pay a substantial rent.

8.3 Contractor’s basis

Ice and roller skating rinks – The contractors basis is not recommended for stand-alone ice and roller skating rinks. This method of valuation may however be appropriate where the facilities are provided as part of a larger multi-use leisure facility (some local authority, some private, some joint ventures).

Skateboard parks – where there is no rental evidence or receipts information to provide an alternative valuation method, a contractor’s basis valuation is appropriate.

8.4. Valuation Considerations

8.4.1 The main factors that determine use and profitability are:> Location of the subject ice rink
- Range of facilities
- Quality of those facilities
- Presence or absence of resident clubs
- The immediate locality - especially where there have been regeneration schemes
All of these factors should be considered when determining the percentage of gross receipts to be adopted.

Other valuation consideration should include the following:

a. Plant and machinery

For the purposes of valuation and analysis, the value of rateable plant should be reflected in the value of buildings.

b. Suitability as a venue for shows, non-skating events and ancillary sales

c. Car parking

As with most leisure attractions car parking is important. If this is contained within the hereditament, no separate charge will be made but the benefit will be reflected in the admission charge.

Where there is no, or limited, on-site parking, and no free public car park nearby, a separate parking charge may affect the admission price(s) and/or the number of admissions. This factor would therefore already be reflected in the gross receipts of the subject property.

9.Valuation Support

All valuations should be entered onto the Non-Bulk Server (NBS) under the relevant Scat Code.

Other support available:

Survaid

Class Co-ordination Team

Practice note 1: 2023 - ice rinks

1. Market Appraisal

1.1 During the past decade the number of ice rinks in the country has fallen. The older and more dated facilities have lost their share of the leisure market to either new or substantially modernised facilities elsewhere.

1.2 Between 2016 and 2019, however, the number of people participating in ice skating in the country increased by around 35%. The view within the industry is that there is an underlying demand and interest in ice skating indicated by the fact by the end of 2019, approximately 67,800 people were taking part in ice skating across the country.

1.3 Demand for this particular class of leisure property goes through a 4 year cycle primarily driven by the Winter Olympics and by exposure of this sport on television - the Winter Olympics in Pyeong Chang in 2018 helped fuel the increase in demand referred to above.

1.4 Although British success in the competitive side of the sport has not been very significant, there has been continued interest generated by the TV Show “Dancing on Ice”.

1.5 Multi-purpose Arenas, rather than ice rinks, are homes to some of the leading ice-hockey teams. These arenas have a much greater spectator seating capacity than the majority of stand-alone ice rinks and are often used as concert venues throughout the year.

1.6 Some of the smaller rinks have limited seating capacity and any ice hockey team is likely to play in a lower league.

1.7 Values between these two types of property need to be co-ordinated where their physical characteristics are similar.

1.8 Within the last few years there has been a considerable increase in the number of mobile Christmas ice rinks within England and Wales. Most open mid-November and last into early January. These temporary ice rinks vary considerably in terms of size and are often set up in iconic settings where there are other events taking place. Despite the transient nature of this form of occupation these hereditaments still fall to be rateable.

1.9 Despite the closure of the more outdated and un-modernised ice-skating facilities, there is demand for new and strategically well located facilities as demonstrated by the opening of a permanent ice rink at the Edge of Cambridge in 2019, which boasts a 340-seat arena, with room for several hundred more standing spectators, and is one of the most energy efficient ice rinks in the UK.

The outlook as at the Antecedent Valuation Date for the new and modern ice rinks is therefore one of cautious optimism, with reasonable expectations of moderate growth in the future.

1.10 The COVID-19 pandemic had a major impact on ice skating in the period leading up to the AVD (1 April 2021). Details of the various restrictions implemented by statute in response to the pandemic, and of the vaccination rollout, can be found online. In February 2021 the UK Government published its Roadmap out of lockdown for England which set out four steps to relax restrictions. Step 1, easing restrictions on outdoor gatherings, had already taken place by the AVD.

1.11 The later three stages of the Roadmap for England included:
- the opening of outdoor hospitality, and non-essential retail (Step 2, no earlier than 12 April)
- most legal restrictions on meeting others outdoors to be lifted, opening of indoor entertainment venues such as cinemas, casinos and bingo halls (Step 3, no earlier than 17 May 2021)
- the removal of remaining restrictions on social contact (Step 4, no earlier than 21 June)
Subsequent to 1 April 2021 steps 2 and 3 took place as planned, but Step 4 was delayed four weeks to 19 July.

1.12 The situation in Wales, both leading up to and after the AVD, was similar although not identical.

Ice Rinks performance in 2020

1.13 In 2020, approximately 62,500 people participated in ice skating in the country. This represents a slight decline from the previous year, although participation was obviously affected by the onset of coronavirus.

1.14 Ice rinks re-opened in August 2020 following easing of coronavirus restrictions, but most had to close for public ice skating from midnight on Friday 19th December. Those ice rinks that were able to stay operational under Tier 3 for providing Out of School activities to young people were also forced to close in January 2021 following changes in Tier 3 restrictions. Ice Rinks were then able to reopen in July 2021 as per step 4 of the Prime Minister’s road map.

Several outdoor ice rinks across the UK were able to remain open throughout December 2020 and January 2021 subject to social distancing requirements.

1.15 The former Olympic rink in Bracknell closed its doors and was sold in 2021, however a new state-of-the-art training facility opened nearby later in the year.

1.16 Autumn 2021 also saw the opening of a new indoor ice rink at Cribbs Causeway in Bristol. With capacity for 1,300 spectators, it has also become the new home for Bristol’s ice hockey team following the closure of the former Bristol Ice Rink in Frogmore Street.

1.17 Construction work on a new Olympic-sized ice centre in East London has started in 2021, with the new centre due to open next year. The new development will include a twin pad ice rink, gym, café, exercise studios and community space.

2. Changes from the last practice note

2.1 There are no changes from the broad principles followed for the 2010 & 2017 Rating Lists. The approach therefore remains the same.

3. Ratepayer discussions

3.1 None have taken place.

4. Valuation scheme

4.1 General advice on valuation and the factors that need to be taken into consideration are provided in the main section of Rating Manual: section 6 part 3 - section 930.

4.2 In the absence of reliable rental information, the initial valuation consideration is to determine the Fair Maintainable Trade (FMT) as at the Antecedent Valuation Date (AVD), 1 April 2021.

4.3 FMT is an estimate of annual receipts that could be derived by occupying the property and conducting the subject business operation with the skill and expertise that could be reasonably be expected from a potential tenant of the hereditament. This figure will represent the gross annual receipts from all sources (exclusive of VAT).

4.4 The effects of the COVID-19 outbreak need to be taken into account as they would have been anticipated by the parties at the AVD. Trade evidence that includes long periods of lockdowns is unlikely to provide good evidence of the FMT at the AVD. Valuers are advised to take as their starting point the closest reliable trade, which is likely to be the 2019/2020 trading year (ending March or before) and any previous trading years.

4.5 Having established the likely FMT for the 19/20 trading year (ending March or before), the valuer should then consider any further adjustments needed to reflect the receipts envisaged as at 1 April 2021. The reasonable efficient operator (REO) will take a view not only on the trade immediately achievable at AVD, but the trade over a period of time ahead, as they are assumed to be taking a tenancy with a reasonable prospect of continuance.

4.6 Analysis of the available evidence suggests that the bid ranges that should be applied to the Fair Maintainable Trade, net of VAT are as follows:

4.5% - 8.0%

4.7 Demand for ice rinks has two main drivers - the Winter Olympics and exposure on the television.

4.8 The percentage adopted within the range will reflect the characteristics of the property and facilities provided. Properties which are newer or have more modern facilities would be towards the top of the range and older un-modernised ice rinks with higher operating costs towards the bottom of it.

Practice note 2: 2023 - roller skating rinks and skateboard

Roller skating

1.1 The roller skating rink market was largely developed in the 1980s when operators favoured existing industrial units that could be converted to roller rinks with minimal alterations. However, the popularity of roller skating has been in decline since the late 1990s with closures or diversifications into other leisure uses such as children’s party/play facilities, though there may be exceptions to this, especially in London. A number of rinks across the UK have shut down in the last decade, including sites at Great Yarmouth and Strood, citing market demands and operating costs as reasons for closure.

Skateboard parks

1.2 The provision of skateboard parks, both outdoor and indoor, continues to fluctuate with the changing popularity of the sport from year to year. They are often linked with BMX free-styling courses/parks.

1.3 Skateboarding is included as a new event in the 2021 Olympics in Tokyo and it is expected that this may generate increased participation in the sport in the future.

1.4 External skateboard parks are created using reinforced concrete structure in comparison to indoor ones where the ramps are of a non-structural nature.

Performance in 2020

1.5 The COVID-19 pandemic had a major impact on indoor skate parks in the period leading up to the AVD (1 April 2021). Details of the various restrictions implemented by statute in response to the pandemic, and of the vaccination rollout, can be found online. In February 2021 the UK Government published its Roadmap out of lockdown for England which set out four steps to relax restrictions. Step 1, easing restrictions on outdoor gatherings, had already taken place by the AVD.

1.6 The later three stages of the Roadmap for England included:

the opening of outdoor hospitality, and non-essential retail (Step 2, no earlier than 12 April)

most legal restrictions on meeting others outdoors to be lifted, opening of indoor entertainment venues such as cinemas, casinos and bingo halls (Step 3, no earlier than 17 May 2021)

the removal of remaining restrictions on social contact (Step 4, no earlier than 21 June)

Subsequent to 1 April 2021 steps 2 and 3 took place as planned, but Step 4 was delayed four weeks to 19 July.

1.7 The situation in Wales, both leading up to and after the AVD, was similar although not identical.

1.8 Indoor roller-skating rinks and skate parks were able to re-open in August 2020 following easing of Coronavirus restrictions but were forced to close again in November for the second national lockdown. They were then able to re-open from May 2021 at the earliest as per stage 3 of the Prime Minister’s road map.

1.9 Outdoor skate parks were allowed to re-open from 29 March 2021 as per stage 1 of the Prime Minister’s road map.

1.10 Since the summer of 2020, there has been an upswing in the popularity of both roller skating and skateboarding, as many sought out new outdoor hobbies that would be more resilient to the pandemic’s restrictions. The surge in popularity has also been driven by social media trends that have increased consumers’ exposure to skating on various platforms. Demand for skating equipment has led to an immediate shortage in the supply of skates and skateboards, both nationally and worldwide. However, it remains to be seen whether the increased popularity of skating will continue beyond the pandemic, or whether this will translate into increased market demand for skating rinks nationally.

2. Changes from the last practice note

2.1 There are no changes from the broad principles followed for the 2017 Rating List and the approach therefore remains the same.

3. Ratepayer discussions

3.1 None have taken place.

4. Valuation scheme

4.1 General advice on valuation and the factors that need to be taken into consideration are provided in the main section of Rating Manual: section 6 part 3 - Section 930 skating rinks and skateboard parks.

4.2 For skateboard parks rental evidence should be analysed in terms of a price per square metre. Where no reliable rental evidence exists and the park is not operated on a commercial basis, it may be appropriate to adopt a contractor’s valuation basis.

4.3 Where a valuation is undertaken using a percentage of gross receipts, the guide for the percentage to be adopted is as follows:

4.4 Roller-skating rinks 5.5% - 9%

4.5 The effects of the COVID-19 outbreak need to be taken into account as they would have been anticipated by the parties at the AVD. Trade evidence that includes long periods of lockdowns is unlikely to provide good evidence of the FMT at the AVD. Valuers are advised to take as their starting point the closest reliable trade, which is likely to be the 2019/2020 trading year (ending March or before) and any previous trading years.

4.6 Having established the likely FMT for the 19/20 trading year (ending March or before), the valuer should then consider any further adjustments needed to reflect the receipts envisaged as at 1 April 2021. The reasonable efficient operator (REO) will take a view not only on the trade immediately achievable at AVD, but the trade over a period of time ahead, as they are assumed to be taking a tenancy with a reasonable prospect of continuance.

4.7 Except for the largest fully commercial roller-skating rinks the preferred method of valuation is by using a price per m2.

4.8 Any rental evidence for buildings used for both roller skating rinks and skateboard facilities should be analysed on the basis of a price per m2. Analysed rents should be adjusted for any rateable tenant’s improvements and this analysis used to form the basis of valuation for these and other non-rented properties. It is likely that these will be former industrial or warehousing premises and any movement in value will be evidenced by changes in the rent of the subject property or similar types of property in the locality or turnover.

4.9 Regard should also be had to other similar leisure uses in former industrial buildings such as indoor Go-Kart tracks.

Practice note 1: 2017 - ice rinks

1. Market Appraisal

During the past 5 years the number of ice rinks in the country has fallen by approximately 30%. The older and more dated facilities have lost their share of the leisure market to either new or substantially modernised facilities elsewhere.

By June 2015, however, there was a 27% increase in the number of people participating in ice skating compared to 2014. The view within the industry is that there is an underlying demand and interest in ice skating indicated by the fact that last year 46,700 people took part in ice skating, every month of the year.

Demand for this particular class of leisure property goes through a 4 year cycle primarily driven by the Winter Olympics and by exposure of this sport on television - the Winter Olympics in Sochi in 2014 helped fuel the increase in demand of 27% referred to above.

However Ice Skating has not generally prospered in the last decade as British success in the competitive side of the sport has not been very significant, but there has been continued interest generated by the TV Show “Dancing on Ice”. The main purpose-built facility is the National Ice Centre at Nottingham, a venue with a 7,500 capacity for ice events and 10,000 for concerts. There is a modern ice rink in Sheffield with both a competition and practice pad, but the city’s chief ice hockey team play at the neighbouring Sheffield Arena. A traditional ice rink survives elsewhere in the city.

Multi-purpose Arenas, rather than ice rinks, are homes to some of the leading ice-hockey teams such as the Sheffield Steelers, Nottingham Panthers and Cardiff Devils. These arenas have a much greater spectator seating capacity than the majority of stand-alone ice rinks and are often used as concert venues throughout the year.

Some of the smaller rinks have limited seating capacity and any ice hockey team is likely to play in a lower league.

Values between these two types of property need to be co-ordinated where their physical characteristics are similar.

Within the last 3 to 4 years there has been a considerable increase in the number of mobile Christmas ice rinks within England and Wales. These range considerably in terms of size, and are often most popular at locations where there are other events taking place such as at Hampton Court Palace, Somerset House, or Canary Wharf. Despite the transient nature of this form of occupation these hereditaments still fall to be rateable.

Despite the closure of the more outdated and un-modernised ice skating facilities, there is demand for new and strategically well located facilities as demonstrated by the construction of a new £16 million ice arena in Cardiff Bay in 2014 - designed to be a world-class facility as part of a larger development project encompassing retail, hotel, and restaurants. Also, a new multi-million pound ice rink is promised for East Kilbride as is a new Olympic sized ice rink in Manchester City Centre for the “Manchester Phoenix” ice hockey club.

The outlook as at the Antecedent Valuation Date for the new and modern ice rinks is therefore one of cautious optimism, with reasonable expectations of moderate growth in the future.

2. Changes from the Last Practice Note

There are no changes from the broad principles followed for the 2010 Rating Lists and the approach therefore remains the same.

3. Ratepayer Discussions

None have taken place.

4. Valuation Scheme

General advice on valuation and the factors that need to be taken into consideration are provided in the main section of RM 5: Section 930. (https://www.gov.uk/guidance/rating-manual-section-6-part-3-valuation-of-all-property-classes/section-930-skating-rinks-and-skateboard-parks)

Where a valuation is undertaken using a percentage of gross receipts, the guide for the percentage to be adopted is as follows:

Ice skating rinks 5.0% - 9.0%

Demand for ice rinks has two main drivers - the Winter Olympics and exposure on the television. The Winter Olympics in Sochi in 2014 has left a sustained demand for ice skating facilities in 2015.

Between the 2010 & 2017 Rating Lists demand has been underpinned and uplifted by these two “drivers” and a modest increase in the percentages adopted for Reval 2017 is justified - especially for the newer and more modern facilities.

But, any percentage increase in the rate adopted needs to be tempered by the increase in running costs, especially that for fuel.

Many operators are consolidating their estates and closing the older and less profitable facilities. For the older and un-modernised ice rinks a nil increase in the percentage to be adopted is probably more appropriate.

Practice note 2: 2017 - roller skating rinks and skateboard parks

1. Market Appraisal

Roller Skating

The roller skating rink market was largely developed in the 1980s when operators favoured existing industrial units that could be converted to roller rinks with minimal alterations. However, the popularity of roller skating has been in decline since the late 1990s with closures or diversifications into other leisure uses such as children’s party/play facilities, though there may be exceptions to this, especially in London.

Skateboard Parks

The provision of skateboard parks, both outdoor and indoor, continues to fluctuate with the waxing and waning in popularity of the sport from year to year. They are often linked with BMX free-styling courses/parks.

2. Changes from the Last Practice Note

There are no changes from the broad principles followed for the 2010 Rating Lists and the approach therefore remains the same.

3. Ratepayer Discussions

None have taken place.

4. Valuation Scheme

General advice on valuation and the factors that need to be taken into consideration are provided in the main section of RM 5: Section 930.

Where a valuation is undertaken using a percentage of gross receipts, the guide for the percentage to be adopted is as follows:

Roller-skating rinks 6.0% - 9.5%

Except for the largest fully commercial roller-skating rinks the preferred method of valuation is by using a price per m2.

Any rental evidence for buildings used for both roller skating rinks and skateboard facilities should be analysed on the basis of a price per m2. Analysed rents should be adjusted for any rateable tenant’s improvements and this analysis used to form the basis of valuation for these and other non-rented properties. It is anticipated that rents of former industrial premises for both types of facilities will often be below the local industrial or warehousing tone. The suggested range of values where the only use envisaged is as a roller-skating rink is £20/m2 - £30/m2. Values are unlikely to have increased significantly from 2010 if at all, though this will be evidenced from rental evidence or turnover. Regard should also be had to other similar leisure uses in former industrial buildings such as indoor Go-Kart tracks.