Libraries
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 libraries which are open to the public and generally provided and funded by the local authority in whose administrative area they are situated. It also includes libraries which are open to the public at large but which are run and maintained by “not for profit” charitable trusts and voluntary organisations whether under the auspices of the local authority or not.

2. List description and special category code

List Description: Library and Premises

SCat Code156: Suffix G

3. Responsible teams

This is a generalist class and responsibility for valuation will lie with the appropriate business unit. Queries of a complex nature arising from the valuation of individual properties should be referred to the National Valuation Unit (NVU) Class Lead via the Class Co-ordination Team (CCT).

4. Co-ordination

NVU Civic Team has overall responsibility for the co-ordination of this class. The CCT are responsible for the approach to and accuracy and consistency of valuations. The CCT 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: f - 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

Libraries 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 2 Part 7 Appendix 2 thereof for guidance on mode and category of use at the material day.

6. Survey requirements

6.1 Method of Measurement

Public libraries may be valued by either the rentals method or by reference to the contractor’s 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 contractor’s 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

The design, specification and size of public libraries varies enormously from small temporary structures of wood and felt construction to very impressive “flag ship” buildings. Generally libraries will fall into two categories these being central libraries and branch libraries. Central libraries have traditionally been the focal point of the library service often acting as a hub for book and other media provision within the local authority area. They may act as an administrative centre and may also incorporate specialist archive and IT facilities and will probably house the main county reference library. They will normally be housed in prestigious buildings which may be contemporary or historic. There will be 1 or 2 central libraries or libraries of equivalent character in each library authority area. Branch libraries are more varied in nature and their character and construction will depend upon the size of the community they serve.

6.3 Requirements

a. Unit of Assessment

The principles referred to in Rating Manual Section 2 Part 2 2. Identification of the hereditament (https://www.gov.uk/guidance/rating-manual-section-2-maintaining-the-rating-list) should be adhered to. In cases of difficulty advice from the Technical Advisor/NVU specialist 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. Recently (post-2010) some local authorities have moved to providing integrated “one stop” community hubs incorporating a range of services sometimes extending to include library, medical, administrative, sports and leisure services and a police presence all within one building. In these circumstances it is essential the rateable occupier of each part is ascertained and the correct unit(s) of assessment identified.

b. 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 - e.g. temporary, traditional/permanent brick and tile or steel framed including roof type e.g. flat or pitched.
- Dimensions (where measured to NIA) and description of the accommodation i.e. lending library, children’s library, archive, administrative office etc.
- Where the contractor’s basis is to be the method of valuation only the GIA of individual building(s) and any extensions is required unless there is a significant variation in the type of accommodation. For example a separate GIA will be required if an archive is located within the main library building and has its own distinct characteristics such as design features and plant for the control of humidity, fire and temperature.
- The number of storeys for each building.
- Flat roof area.
- Age of all buildings/extensions.
- Description and detail of services to the hereditament e.g. heating, air conditioning, security systems (to include CCTV, barriers, gates and perimeter fencing), lifts, escalators, solar panels, wind turbines etc.
- 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.
7. Survey capture

Survey information including plans are to be stored on EDRM. Where the library 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 library 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

The rental method should be applied only where there is:
- direct rental evidence or
- rental evidence derived from the letting of other libraries or
- sufficient evidence from other localities to establish that the rents relating to libraries are at a level commensurate with other modes or categories of use
Where libraries are situated in shopping parades or centres in shop units with minimal fit out, retail rents may carry evidential weight providing it can be demonstrated that a library user would be prepared to pay retail rents to secure the unit (Scottish and Newcastle (Retail) Ltd v Williams (VO) 2000 RA 119). The quality of the rental evidence will depend upon its propinquity to the rating hypothesis and its proximity to the antecedent valuation date. New lettings involving building shells which are subsequently adapted or fitted out for library use may also be useful evidence of value, subject to appropriate adjustment for tenant’s improvements. Evidence on review of such hereditaments must be treated with extreme caution and not applied without sight of the actual lease terms on which the review is based, as such reviews may be geared to the value of the hereditament for alternative uses.

In recent years some local authorities have passed over responsibility for the running of the library service to arms-length not for profit organisations and other voluntary bodies or groups of individuals. These arrangements may incorporate the grant of a lease or licence to use local authority owned assets. Full details, including copies of the lease and service agreements as between the provider and the local authority should be obtained and considered prior to the rents/fees passing under such leases being accepted as having any evidential weight.

As this class of hereditament does not lend itself to valuation using the receipts and expenditure method then in the absence of sufficient rental evidence to carry out a valuation using the rentals method the contractor’s basis of valuation should be applied by reference to Rating Manual: Section 4 Part 3 The Contractor’s Basis of Valuation and the practice note applicable to the relevant Rating List.

9. Valuation Support

Valuations are to be carried out using the dedicated libraries spreadsheet held on the non-bulk server (NBS). Valuations on the rental/comparative method are to be carried out on the Rating Support Application.

Practice note: 2023 - public libraries

1. Market appraisal

The number of public libraries in England and Wales has fallen since the 1 April 2015 as has the number of paid staff employed and the number of library visits by members of the public. There has been a reported increase in the number of voluntary staff.

Concern over falling library numbers and library visits resulted in the publication in 2014 of a Report entitled “The Independent Library Report for England” which recommended the creation of a libraries “task force”. The task force published the “libraries deliver” strategy in 2016. The strategy outlined a number of components for library development and identified what it considered as critical outcomes for individuals and communities in respect of library usage and has subsequently published a range of material concerned with the development and management of public libraries.

Notwithstanding the fall in the number of libraries local authorities retain an obligation to provide a comprehensive and efficient library service under the provision of section 7(1) of the Public Libraries and Museums Act 1964. However how this duty is undertaken is not specified and as funding has reduced in recent years so new methods of delivery have evolved such that in addition to local authority run libraries there are now:
- commissioned libraries which are part of the statutory service and funded by the local authority, but the running of the service has been transferred to a separate trust or organisation (e.g. a social or commercial enterprise)
- community-run libraries which have some level of ongoing support from the local authority, but staff may sometimes be volunteers. Work is according to a joint agreement such as a Service Level Agreement, Memorandum of Understanding or contract. It may or may not be counted as part of the statutory service
- an independent community library is managed by a non-local authority body and is outside the local authority statutory network
The trend toward co locating libraries with other local authority facilities such as sports and leisure centres or customer service centres, or with facilities occupied by other public bodies such as health centres to provide a “one stop” community service, continues as does the relocation of library facilities to other suitable available premises such as empty former retail outlets where it makes financial sense to do so. It has been reported that digitalisation continues and is likely to gather pace.

Examples of new build libraries can be readily identified researching the internet.

2. Changes from the last practice note

This Practice Note has been revised following the agreed GPCR of the 2017 List. It adopts similar principles but with updated levels of costs, allowances and adjustments. The flat roof allowance has been revised.

3. Ratepayer discussions

No discussions have taken place with any representative body or their agents

4. Valuation scheme

4.1 Valuation using rental evidence

Where libraries are situated in shopping parades or centres in shop units with minimal fit out, retail rents may be used as evidence as long as it can be demonstrated that a library user would be prepared to pay retail rents to secure the unit (Scottish and Newcastle (Retail) Ltd v Williams (VO) 2000 RA 119). The quality of the rental evidence will depend upon its propinquity to the rating hypothesis and its proximity to the AVD. New lettings involving building shells which are subsequently adapted or fitted out for library use may also be useful evidence of value, subject to appropriate adjustment for tenant’s improvements. Evidence on review of such hereditaments must be treated with extreme caution and not applied without sight of the actual lease terms on which the review is based; as such reviews may be geared to the value of the hereditament for alternative uses.

4.2 Valuation using the contractor’s basis

Where no direct rental evidence exists, the contractor’s basis should be used.

4.2.1 Stage 1 - estimated replacement cost

Building costs

Normally, with the exception of areas that are patently not used at the antecedent valuation date, the actual GIA should be used to calculate the Estimated Replacement Cost (Stage 1) of the building. In particular, basement book storage should (unless clearly surplus to requirements) be included at the full rate. The storage of books and archive materials is an essential part of a public library service and has not been overtaken by new technology.

However, exceptionally, where it can be demonstrated by reference to design criteria current at the antecedent valuation date that a branch library is too big, the substitute building approach may be considered. This does not apply to Central libraries. Where it is considered appropriate to adopt this approach to the valuation of a branch library the relevant specialist in the National Valuation Unit (NVU) must be consulted before proceeding.

The costs shown in Appendix A are for ease of reference. In all cases where a cost guide code is shown that must be input into the NBS template, not the costs shown here. Where the cost guide code shows options, the costs shown in this practice note should be used to aid selection. Should the cost guide show differing costs to those shown in a current version of this practice note, please refer to the Class Coordination Team (CCT).

The building cost to be adopted will depend whether the subject hereditament is a ‘central’ or ‘branch’ library. The identification of central libraries will generally be self evident and they will be located within the town or city centre. They are usually of more elaborated design than branch libraries.

All branch libraries should adopt the cost of the modern substitute irrespective of the construction type. The previous separate cost for ‘system built’ libraries is no longer appropriate and has been dispensed with. Exceptionally some branch libraries will be in the form of temporary buildings that have been brought to site on the back of a lorry. In such instances these should have the ‘temporary building’ cost applied as shown in Appendix A. Where the temporary building forms the entire library then the separate scale of external works and developed land additions should apply.

Should any difficulties arise in the classification please refer to NVU / CCT for guidance.

Iconic flagship buildings are to be dealt with on their own merits. When valuing such buildings, it is suggested that NVU / CCT guidance should be sought.

Temporary buildings

The costs for portable buildings are given in Appendix A below

4.2.2 External works

Additions are to be made in accordance with the guidelines given in Appendix B below.

4.2.3 Contract size adjustments should be made in accordance with Appendix C below.

4.2.4 Location factors are to be applied in accordance with Appendix D below.

4.2.5 An addition for fees should be made in accordance with Appendix E below.

4.2.6 Stage 2 – Age and obsolescence

The Estimated Replacement Cost (ERC) established at Stage 1 above is converted to Adjusted Replacement Cost (ARC) by applying an age and obsolescence allowance.

The standard age and obsolescence allowances (non–industrial) to be applied to the ERC of the individual blocks of permanent buildings are set out in Rating Manual: section 4 part 3 - the Contractor’s basis of valuation (https://www.gov.uk/guidance/rating-manual-section-4-valuation-methods/part-3-the-contractor-s-basis-of-valuation). The civic scale is applicable to permanent library buildings and is replicated at Appendix F (Table 1). For temporary buildings Appendix F (Table 2) will apply.

The scale contained in Table 1 Appendix F take into account the following salient points:

a) The revised age and obsolescence scale represents the combined age related physical depreciation along with functional obsolescence and technological redundancy exhibited by buildings of each age typical for their quality/specification and condition. It is anticipated that the stated allowances will be adopted in the majority of cases and only either moderated or increased in exceptional circumstances.

b) Extensions are to be given an allowance appropriate to their age unless of a lower specification than would be expected of a building of that age in which case 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, consideration should 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.

For the avoidance of doubt the age of the building should be taken as the date the building was completed.

Multi-floor allowances

An allowance of 7.5% overall should be made to the whole of individual pre-2005 buildings, of 4 or more floors where there are no lifts or they are inadequate. In the absence of evidence to the contrary, it will be assumed that pre-1980 buildings have inadequate or no lifts, but those completed between 1980 and 2005 have adequate lifts. Buildings completed in 2005 and afterwards will have adequate lifts to comply with the Disability Discrimination Act and relevant Building Regulations.

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

Flat roof allowance

Permanent buildings built prior to 2005 with a flat roof are to receive an additional allowance. The allowance is not to be applied to temporary buildings, stores, workshops or garages.

£80m2 ARC of the footprint of the flat roof for buildings constructed up to and including 2004

no allowance for flat roofs constructed from 2005 and onwards

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

What is flat as opposed to a pitched roof will generally be self-evident. In instances where an allowance is sought for pitched roofing caseworkers should seek advice from the National Valuation Unit before proceeding.

This allowance is not to be applied to libraries of temporary construction.

4.2.7 Stage 3 – land value

The developed land value additions are shown in Appendix G below and are taken as percentages of the total aggregate adjusted replacement cost. Developed land is defined as land consisting of the footprint of all buildings, associated landscaped areas, roadways, car parks, hard standings and paths. Any additional land on the site will be viewed as undeveloped land and valued as amenity land for the appropriate region as detailed in the 2023 Land Value Practice Note.

4.2.8 Stage 4 - de-capitalisation rate

The effective capital value (ECV) of the hereditament shall be de-capitalised to an annual equivalent by taking the prescribed (higher) rate. Please note that libraries are not educational buildings within the statutory meaning.

4.2.9 Stage 5 - end adjustments

Any advantage or disadvantage, which might affect the value of the occupation of the hereditament as a whole, should be reflected at this stage. An adjustment under this head should not duplicate adjustments made elsewhere. Issues that it may be pertinent to consider at this stage include:

For branch libraries instances where there is no on-site parking and no public car park or street parking in the vicinity then an end allowance of up to 5% may be appropriate. No allowances should be conceded for the lack of parking on town centre and city centre libraries.

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

Limited opening hours

For small local libraries, typically less than £12,000 RV serving centres of population of less than 7,500 persons, the following allowances should be made, where the opening hours are less than 25 hours per week.

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

Nationally, there is an increasingly widespread implementation of what may be termed ‘Open Library’ or ‘Open+’ access arrangements. This uses technology to allow use of the library facilities outside of normal hours when unstaffed. Providing much greater access not only gains new users but also provides other benefits such as facilitating meeting space for local community groups etc.

In circumstances where such access arrangements are in place, no allowance for limited opening hours is appropriate.

4.3 Vacant libraries

Where a Library is vacant at AVD due to a lack of demand, and there is no prospect of an alternative use within the same mode or category of occupation, the hereditament should be shown in the list at RV of £0.

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

4.4 IT support

Where the contractor’s basis is appropriate the standard generic contractor’s Spreadsheet held on the Non-Bulk Server should be used for all valuations, selecting ‘Libraries’ from the drop-down menu.

Where the rentals method of valuation is employed, records should be captured and valuations carried out by applying an appropriate scheme using the Rating Support Application (RSA).

Appendix A

Building costs

The costs to be used in valuing this property class are given below.

Iconic library buildings to be individually costed (see 4.2.1 above).

Appendix B

External works

The cost of external works is to be added in accordance with the following table.

Notes

There may be some instances where a multi-storey library occupies a town or city centre island site with a building ratio in excess of 200% and no tangible land outside of the building footprint. In such circumstances a minimum 2.5% external works addition should be made.

The plot ratio is the building GIA expressed as a percentage of the total site area (including building footprint).

An appropriate percentage addition should be chosen from the above ranges to reflect the extent of external works within the hereditament using plot ratio as an indicative guide only.

Appendix C

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 D

Location Factors

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

Appendix E

Professional Fees and Charges

Fees should be added at the percentages shown in the VOA published Cost Guide at Section 7. For convenience these are shown below inclusive of the 2% complexity addition. Note that minimum fees may apply to counter inversion.

As an exception iconic flagship buildings are to be dealt with on their own merits. When valuing such buildings, it is suggested that NVU / CCT guidance should be sought.

Appendix F

Age & Obsolescence Allowances

Table 1: Civic Buildings Obsolescence Allowances

Table 2 - Temporary Buildings Obsolescence Table

Appendix G

Developed Land Value

For iconic libraries where bespoke costs have been adopted liaison is required with the Class Coordination Team member/National Valuation Unit.

Practice note 1: 2017 - public libraries

1. Market appraisal

As with other publicly funded facilities, the provision of library services has decreased with the current tightening of public finances. The trend to reduce the number of outlets seems set to continue whilst the culture of library use is also changing with a decrease in the number of visits to libraries. The internet has played its part in the decline of library visits and this in itself has reflected in the way libraries have changed their operation with more space being devoted to providing IT facilities

As local authorities seek to save money smaller libraries are being located in local authority owned shops in parades or centres. There is a significant trend to locate libraries in the same building as other community facilities. These mixed use community hubs can contain sports facilities, doctor and dentist surgeries and IT facilities. Transferring library services to local Trusts and resident groups of volunteers is also adopted by some local authorities in order to achieve financial savings as is reduction in opening hours.

2. Changes from the last practice note

The sector is becoming increasingly more complex with the advent of libraries run by volunteers and trusts, libraries being affected by more restricted opening hours and libraries being part of a larger community hub building. These factors will affect the choice of valuation method to be adopted and the resultant rateable value calculation. When using the contractors basis as the preferred method of valuation, the following changes have been made.

The costs to be applied at Stage 1 of the contractors basis relate to the modern substitute and do not relate to the cost of replacing the actual building as was the approach adopted for the 2010 List.

The costs for ‘system built’ libraries has been discontinued following the implementation of the revised Stage 2 age and obsolescence scale.

The age and obsolescence allowances applied at Stage 2 now reflect the attributes and disadvantages of the actual buildings in comparison with the modern substitute and has been revised in line with other civic classes.

Stage 5 allowances have been also been reviewed as some previously expressed allowances are now properly reflected within the civic obsolescence scale (Stage 2).

3. Ratepayer discussions

Discussions have taken place with representatives of the Library sector namely Wilkes Head & Eve, Gerald Eve, Avison Young, Lambert Smith Hampton, Jones Lang LaSalle and Lancashire County Council as part of the Group Pre Challenge Review (GRCR) 36303579. The agreed scheme relates to those Libraries valued on the contractor’s basis.

4. Valuation scheme

4.1 Valuation using rental evidence

Where libraries are situated in shopping parades or centres in shop units with minimal fit out, retail rents may be used as evidence as long as it can be demonstrated that a library user would be prepared to pay retail rents to secure the unit (Scottish and Newcastle (Retail) Ltd v Williams (VO) 2000 RA 119). The quality of the rental evidence will depend upon its propinquity to the rating hypothesis and its proximity to the AVD. New lettings involving building shells which are subsequently adapted or fitted out for library use may also be useful evidence of value, subject to appropriate adjustment for tenant’s improvements. Evidence on review of such hereditaments must be treated with extreme caution and not applied without sight of the actual lease terms on which the review is based; as such reviews may be geared to the value of the hereditament for alternative uses.

4.2 Valuation using the contractor’s basis

Where no direct rental evidence exists, the contractor’s basis should be used.

4.2.1 Stage 1 - estimated replacement cost

Building costs

Normally, with the exception of areas that are patently not used at the antecedent valuation date, the actual GIA should be used to calculate the Estimated Replacement Cost (Stage 1) of the building. In particular, basement book storage should (unless clearly surplus to requirements) be included at the full rate. The storage of books and archive materials is an essential part of a public library service and has not been overtaken by new technology.

However, exceptionally, where it can be demonstrated by reference to design criteria current at the antecedent valuation date that a branch library is too big, the substitute building approach may be considered. This does not apply to Central libraries. Where it is considered appropriate to adopt this approach to the valuation of a branch library the relevant specialist in the National Valuation Unit (NVU) must be consulted before proceeding.

The costs shown in Appendix A are for ease of reference. In all cases where a cost guide code is shown that must be input into the NBS template, not the costs shown here. Where the cost guide code shows options, the costs shown in this practice note should be used to aid selection. Should the cost guide show differing costs to those shown in a current version of this practice note, please refer to the Class Coordination Team (CCT).

The building cost to be adopted will depend whether the subject hereditament is a ‘central’ or ‘branch’ library. The identification of central libraries will generally be self evident and they will be located within the town or city centre. They are usually of more elaborated design than branch libraries.

All branch libraries should adopt the cost of the modern substitute irrespective of the construction type. The previous separate cost for ‘system built’ libraries is no longer appropriate and has been dispensed with. Exceptionally some branch libraries will be in the form of temporary buildings that have been brought to site on the back of a lorry. In such instances these should have the ‘temporary building’ cost applied as shown in Appendix A. Where the temporary building forms the entire library then the separate scale of external works and developed land additions should apply.

Should any difficulties arise in the classification please refer to NVU / CCT for guidance.

Iconic flagship buildings are to be dealt with on their own merits. When valuing such buildings, it is suggested that NVU / CCT guidance should be sought.

Temporary buildings

The costs for portable buildings are given in Appendix A below

4.2.2 External works

Additions are to be made in accordance with the guidelines given in Appendix B below.

4.2.3 Contract size adjustments should be made in accordance with Appendix C below.

4.2.4 Location factors are to be applied in accordance with Appendix D below.

4.2.5 An addition for fees should be made in accordance with Appendix E below.

4.2.6 Stage 2 – Age and obsolescence

The Estimated Replacement Cost (ERC) established at Stage 1 above is converted to Adjusted Replacement Cost (ARC) by applying an age and obsolescence allowance.

The standard age and obsolescence allowances (non–industrial) to be applied to the ERC of the individual blocks of permanent buildings are set out in Rating Manual: section 4 part 3 - the Contractor’s basis of valuation (https://www.gov.uk/guidance/rating-manual-section-4-valuation-methods/part-3-the-contractor-s-basis-of-valuation). The civic scale is applicable to permanent library buildings and is replicated at Appendix F (Table 1). For temporary buildings Appendix F (Table 2) will apply.

The scale contained in Table 1 Appendix F take into account the following salient points:

a) The revised age and obsolescence scale represents the combined age related physical depreciation along with functional obsolescence and technological redundancy exhibited by buildings of each age typical for their quality/specification and condition. It is anticipated that the stated allowances will be adopted in the majority of cases and only either moderated or increased in exceptional circumstances.

b) Extensions are to be given an allowance appropriate to their age unless of a lower specification than would be expected of a building of that age in which case 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, consideration should 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.

For the avoidance of doubt the age of the building should be taken as the date the building was completed.

Multi-floor allowances

An allowance of 7.5% overall should be made to the whole of individual pre-2005 buildings, of 4 or more floors where there are no lifts or they are inadequate. In the absence of evidence to the contrary, it will be assumed that pre-1980 buildings have inadequate or no lifts, but those completed between 1980 and 2005 have adequate lifts. Buildings completed in 2005 and afterwards will have adequate lifts to comply with the Disability Discrimination Act and relevant Building Regulations.

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

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. Permanent buildings with a flat roof are to receive an additional 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 National Valuation Unit before proceeding.

This allowance is not to be applied to libraries of temporary construction.

4.2.7 Stage 3 – land value

The developed land value additions are shown in Appendix G below and are taken as percentages of the total aggregate adjusted replacement cost. Developed land is defined as land consisting of the footprint of all buildings, associated landscaped areas, roadways, car parks, hard standings and paths. Any additional land on the site will be viewed as undeveloped land and valued as amenity land for the appropriate region as detailed in the 2017 Land Value Practice Note.

4.2.8 Stage 4 - de-capitalisation rate

The effective capital value (ECV) of the hereditament shall be de-capitalised to an annual equivalent by taking the prescribed (higher) rate. Please note that libraries are not educational buildings within the statutory meaning.

4.2.9 Stage 5 - end adjustments

Any advantage or disadvantage, which might affect the value of the occupation of the hereditament as a whole, should be reflected at this stage. An adjustment under this head should not duplicate adjustments made elsewhere. Issues that it may be pertinent to consider at this stage include:

For branch libraries instances where there is no on-site parking and no public car park or street parking in the vicinity then an end allowance of up to 5% may be appropriate. No allowances should be conceded for the lack of parking on town centre and city centre libraries.

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

Limited opening hours

For small local libraries, typically less than £10,000 RV serving centres of population of less than 7,500 persons, the following allowances should be made, where the opening hours are less than 25 hours per week.

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

Nationally, there is an increasingly widespread implementation of what may be termed ‘Open Library’ or ‘Open+’ access arrangements. This uses technology to allow use of the library facilities outside of normal hours when unstaffed. Providing much greater access not only gains new users but also provides other benefits such as facilitating meeting space for local community groups etc.

In circumstances where such access arrangements are in place, no allowance for limited opening hours is appropriate.

4.3 Vacant libraries

Where a Library is vacant at AVD due to a lack of demand, and there is no prospect of an alternative use within the same mode or category of occupation, the hereditament should be shown in the list at RV of £0.

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

4.4 IT support

Where the contractor’s basis is appropriate the standard generic contractor’s Spreadsheet held on the Non-Bulk Server should be used for all valuations, selecting ‘Libraries’ from the drop-down menu.

Where the rentals method of valuation is employed, records should be captured and valuations carried out by applying an appropriate scheme using the Rating Support Application (RSA).

Appendix A

Building costs

The costs to be used in valuing this property class are given below.

Iconic library buildings to be individually costed (see 4.2.1 above).

Appendix B

External works

The cost of external works is to be added in accordance with the following table.

Notes

There may be some instances where a multi-storey library occupies a town or city centre island site with a building ratio in excess of 200% and no tangible land outside of the building footprint. In such circumstances a minimum 2.5% external works addition should be made.

The plot ratio is the building GIA expressed as a percentage of the total site area (including building footprint).

**3. **An appropriate percentage addition should be chosen from the above ranges to reflect the extent of external works within the hereditament using plot ratio as an indicative guide only.

Appendix C

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 D

Location factors

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

Appendix E

Professional fees and charges

Fees should be added at the percentages shown in the VOA published Cost Guide at Section 7. For convenience these are shown below inclusive of the 2% complexity addition. Note that minimum fees may apply to counter inversion.

As an exception iconic flagship buildings are to be dealt with on their own merits. When valuing such buildings, it is suggested that NVU / CCT guidance should be sought.

Appendix F

Age & obsolescence allowances

Table 1: Civic buildings obsolescence allowances

Table 2 - Temporary buildings obsolescence table

Appendix G

Developed land value

Notes

Caseworkers should use their own discretion in deciding between “urban” and “rural” categories, but it is suggested that libraries located in villages with a population in excess of 3,000 and above should be regarded as urban in this context.

For iconic libraries where bespoke costs have been adopted liaison is required with the Class Coordination Team member/National Valuation Unit.