Colleges of further education
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 addresses Colleges of Further Education, Sixth Form Colleges, University Technical Colleges, and Police Training Colleges with accommodation and facilities similar to that of a college of further education

1.1 General

The term “further education” covers all types of post-school education apart from that given in universities and Colleges of Higher Education. It includes sixth form colleges and tertiary colleges (ages 16 - 19). Further Education (FE) Colleges in England and Wales are separately incorporated from Local Education Authorities (LEAs) and local government. Funding in England is provided via the Education and Skills Funding Agency (ESFA) and is based on several student roll related formulae. Colleges in Wales receive a settlement from the Welsh Government.

1.2 University Technical Colleges (UTCs):

UTCs are colleges for students aged 14 to 19 which specialise in technical studies and are sponsored by a university. They offer full time courses which combine practical and academic studies. Although technically outside the Further Education sector, the valuation advice contained in this section and the associated Practice Notes provides appropriate valuation guidance.

2. List description and special category code

2.1 List Description: College and Premises

2.2 Special Category Code 065 should be adopted for FE Colleges. Suffix: G/S

2.3 Special Category code 428. Suffix: S should be adopted for Police Training Colleges

This is a split class and suffix G or S should be used. The size of the hereditament and its complexity will determine the G or S classification and liaison should take with the Non-Domestic Rating Unit Valuers to agree which is the most appropriate.

3. Responsible teams

Each individual Unit is responsible for the valuation and assessment of colleges of further education.

4. Coordination

NVU Civic Team has overall responsibility for the co-ordination of this class. The Education 2 Class Coordination Team (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:
- 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

5.1 Replacement Costs

In estimating replacement costs regard should be had to costs appropriate to provide suitable replacement buildings of an acceptable standard. The building to be costed in Stage 1 of the contractor’s best is not necessarily an exactly similar structure. A more simple modern substitute may be acceptable, perhaps more appropriate for the occupier’s needs. It is however emphasised that each case turns on the requirements of the occupier, and in determining whether a similar building or a simpler substitute would be required, it is necessary to examine all the requirements of the occupier, functional and aesthetic, as they existed at the antecedent valuation date.

5.2 Site Value

In their decision in the Cambridge Colleges case (Downing College & Others v Cambridge CC and Alsop (VO) 1968 RA 603) the Lands Tribunal thought that “college land should be valued in the light of residential values” even where situated on the opposite side of the road to a commercial frontage. Some colleges of further education, particularly in London, could fulfil their particular function satisfactorily if situated on a less valuable site provided that adequate transport facilities were available. The object should be to assess the cost of a site which would enable the college to function equally well.

In all of the appeal cases concerning colleges or other educational establishments where the contractors basis has been used, undeveloped areas (primarily unencumbered by buildings) e.g. sports fields, amenity land etc. have been valued at much lower figures than residential development land values, often by comparison with similar properties valued separately in the locality.

6. Survey requirements

Colleges should be measured to Gross Internal Area (GIA) as defined in the VOA Code of Measuring Practice where the contractors basis is to be applied, and to Net Internal Area (NIA) where a rental comparison valuation method is to be used (see Basis of Valuation below).Therefore guidance on the measurements to be taken should be obtained from the valuation case owner before inspection.

Surveys should record the use of all space. Where areas are unused, enquiry should be made and noted as to their use in the future, or otherwise.

Sports facilities open to members of the public should be noted, if possible, gaining details as to the management arrangements and hours of public access. Refer such instances to an NVU specialist for advice on the unit of assessment.

7. Survey capture

Surveys and plans should be stored in the property folder of the Electronic Document Records Management (EDRM) system.

8. Valuation approach

FE Colleges may be valued by either a rentals comparison, or a contractors basis method. Choice of method will be made on a case-by-case basis taking into account the physical attributes of the subject property, and rental evidence in the locality. In very broad terms a rentals approach is likely to apply to smaller hereditaments, and/or those similar to those in office type accommodation, whilst the contractor’s basis will apply to larger, purpose built, campus style colleges.

The Lands Tribunal’s decision in the Appeal of JE Reeves (VO) 2007RA168 (the Truro case) (http://www.landstribunal.gov.uk/judgmentfiles/j427/RA-74-2005.pdf) provides guidance on when the application of an rentals approach is appropriate.

Valuation considerations

8.1 Application of the Contractors Basis

Guidance on the general application of the contractors basis can be found at Rating Manual section 4: valuation methods - Part 3: the contractor’s basis of valuation - Guidance - GOV.UK (www.gov.uk) (https://www.gov.uk/guidance/rating-manual-section-4-valuation-methods/part-3-the-contractor-s-basis-of-valuation) . Details of specific to the application of this scheme are set out in the relevant Practice Note for each rating list.

8.2 Decapitalisation Rate

Hereditaments constructed as, or adapted for use as a College of Further Education or a Police Training College will generally fall within the definition of “educational hereditament” to which the lower statutory decapitalisation statutory rate applies. It should be noted though that qualification as an educational hereditament is subject to a “wholly, or mainly so used” test, and further tests as to the nature of the occupation. In selecting the appropriate rate reference should be made to The Non-Domestic Rating (Miscellaneous Provisions) (No. 2) Regulations 1989 (Amendment) (England) Regulations 2016 (legislation.gov.uk) (https://www.legislation.gov.uk/uksi/2016/777/made#:~:text=Regulation%202%20of%20the%20Non-Domestic%20Rating%20%28Miscellaneous%20Provisions%29,is%20no%20more%20direct%20evidence%20of%20rental%20value.).

8.3 Exemptions

In considering any potential exemption of part or whole of a hereditament reference should be made to the guidance in Rating Manual section 2: valuation principles - Part 6 Exemptions – Part A - Property Used for Disabled Persons - Guidance - GOV.UK (www.gov.uk) (https://www.gov.uk/guidance/rating-manual-section-2-maintaining-the-rating-list/part-6-dual-list-maintenance-england)

9. Valuation support

Rentals comparison valuations should be captured in RSA.

Contractors’ basis valuations should be entered onto the Non-Bulk Server. Other support available:
- Survaid
- Class Co-ordination Team
- National Valuation Unit
Practice note: 2023 - colleges of further education

1. Market Appraisal

National College websites provide data and statistics relating to the sector as well as links to other web sites which together provide a useful reference source for the sector.

Details of new colleges constructed during the period can be found on the Internet.

2. Changes from the last Practice Note

As previously where there is adequate rental evidence, colleges of further education will be valued using the rentals method of valuation, otherwise they will be assessed by reference to the contractor’s basis.

The contractor’s approach remains broadly the same with updated costs, allowances and land values. Both flat roof and multi-floor allowances have been modified.

3. Ratepayer Discussions

No discussions have so far been held either with ratepayers or their representatives and none are anticipated.

4. Valuation Method

The following basis is also to be used for police training colleges with accommodation and facilities comparable to a college of further education.

4.1. Stage 1 Estimated Replacement Cost

(i) Building Costs

Descriptions of building use classification and their associated cost can be found within Appendix A.

The costs shown in Appendix A are for ease of reference. In all cases where a Cost Guide code is shown, that must be input into the NBS template, not the costs shown here. Where the Cost Guide code shows options, the costs shown in this Practice Note should be used to aid selection. Should the Cost Guide show differing costs to those shown in a current version of this Practice Note, please refer to the CCT.

(ii) External Works

The cost of external works is to be added in accordance with Appendix B.

(iii) Location Factors

Where appropriate costs should be adjusted for location by reference to the Location Factors set down in the 2023 Rating Cost Guide and included at Appendix C.

(iv) Contract Size Adjustment

An adjustment for contract size is to be made to the building cost in accordance with the 2023 VOA Cost Guide and replicated in Appendix D below.

(v) Professional Fees and Charges

Fees should be added at the percentages shown in the VOA published Cost Guide at Section 7. For convenience these are shown below in Appendix E.

4.2. Stage 2 Age and Obsolescence Allowances

The age and obsolescence allowances to be applied to the individual building blocks after addition for external works and fees are dependent upon the building classification.

The majority of college buildings should reference the scale within Table 1 of Appendix F. Stand-alone Workshops and Stores should reference Table 2 and the scale for Temporary Buildings is found in Table 3. External sports facilities such as artificial playing surfaces and associated lighting should reference Table 4.

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

Table 1 Civic Obsolescence Allowance is applicable to the main college and sports buildings and caseworkers should take into account the following salient points;

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

b) Extensions are to be given an allowance appropriate to their age unless of a lower specification than would be expected of a building of that age. Where a lower specification is used the allowance should be increased to a level appropriate to reflect the specification of the building as a whole.

c) In respect of physical depreciation, the above scales are intended to reflect normal wear and tear and/or deterioration due to the age of the building. The scales assume an average degree of cyclical refurbishment work will have been undertaken, to include whole or partial renewal of building sub-components, most particularly relating to mechanical and electrical services and internal fit-out, but also including periodic renewal of roof coverings and windows.

d) It follows from the above that no adjustment away from the scales is required in the majority of cases where older buildings have been subject to modernisation and refurbishment works, as these are explicitly assumed to have occurred. An exception to this would be for a building taken back to shell and reconstructed with significant renewal of structural elements, where an abatement of age-related physical obsolescence may be required.

e) An example of a building requiring an abatement of the allowances provided by the scales (due to the mitigation of physical depreciation) would be where a major renovation has occurred utilising the original building foundations, frame (including upper floors) but with comprehensive replacement of the external envelope (walls, windows), a complete internal refit and wholescale replacement of mechanical and electrical services.

f) Conversely, the above scales will be insufficient to reflect physical obsolescence in cases where buildings are substantially un-modernised and in any case, the scales do not apply in instances where the hereditament is not repairable at reasonable cost and where it falls to be valued rebus sic stantibus.

g) To qualify as a substantially un-modernised building it is expected that the building will predominantly have the following:
- single glazed windows;
- original internal layout;
- original ceiling height, with no suspended ceilings;
- original external walls;
- pre 1980 internal finishes (flooring, ceiling and walls, internal doors and fixtures and fittings).
h) In respect of functional and technological obsolescence, for buildings that remain in operational use, the scales include adjustments to reflect functional and technological deficiencies observable in buildings typical of their original period of construction but taking account of the level of assumed cyclical refurbishment reflected in the physical depreciation element of the scales.

i) The type of functional and technological obsolescence factors already reflected in the scales include the following:
- poor energy efficiency and/or environmental sustainability;
- inappropriate layout inhibiting flexible and efficient space utilization;
- modern health & safety, fire or building regulations that preclude or limit the original purposes of the building;
- dated design practices that restrict modern usage (such as lack of/or minimal floor and ceiling voids);
- the absence of modern space heating or air conditioning systems within a building;
j) It follows that only where buildings display specific functional deficiencies or issues of technological redundancy, that are atypical for their age, should consideration be given to applying an additional allowance.

k) One indicator that additional functional obsolescence is present such that the allowance provided by the scales should be adjusted is the presence of new and/or replacement facilities making the existing building surplus. Such replacement or other material redundancy should be considered and may result in the total redundancy of the pre-existing building, i.e. 100% obsolescence.

4.3 Multi-Storey Allowances

Notes for Multi-Storey Allowance

The allowances set down in the table below should be made to the whole of individual buildings. Each principal building should be considered separately. This allowance is intended to reflect the operational difficulties of housing a college in a multi-storey building. In particular, they reflect the problems of students moving between different storeys. Where the lower floors of a building are larger than the upper floors, the valuer will need to make a judgement as to the extent to which the extended parts of the lower floors should also benefit from the multi-storey allowance. This will depend on the use of the extension in the context of the use of the building. Where the use in the extension is related to the use in the building then it will be appropriate to apply the allowance to the extended part.

It is recognised that lift provision is rarely ideal, and normal deficiencies (such as the inability to cope fully with peak time movements of students) in the operation of multi-storey buildings will be present. It is also recognised, however, that in some instances lift provision may be inadequate to cater for the number and size of floors served and in such circumstances the allowances in Table 1 should be applied.

Buildings completed in 2005 and afterwards are assumed to have adequate lifts to comply with the Disability Discrimination Act and relevant Building Regulations. In the absence of evidence to the contrary, it is to be further assumed that pre-1980 buildings have inadequate or no lifts, but those completed between 1980 and 2005 have adequate lifts. In assessing the adequacy (or otherwise) of pre-2005 buildings each principal building should be considered separately and 2 lifts are to be considered adequate for a building up to an overall GIA of 6,000 m2, with an additional lift required for each additional 6,000 m2.

Buildings with inadequate or no passenger lifts

4.4. Flat Roof Allowances

Permanent buildings built prior to 2005 with a flat roof are to receive an additional allowance. The allowance is not to be applied to temporary buildings, stores, workshops or garages.
- £80m2 ARC of the footprint of the flat roof for buildings constructed up to and including 2004
- No allowance for flat roofs constructed from 2005 and onwards
Where a building has varying roof types a reasonable apportionment should be made to arrive at the allowance.

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

4.5. Stage 3 Land Value

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

i) Developed Land

Developed land will consist of the footprint of all buildings, associated landscaped areas, roadways, car parks and hard standings, paths, playgrounds and specialised sports surfaces (all weather pitch, tennis courts, outdoor swimming pools, running tracks etc). It will normally consist of the whole site of the school less playing fields. The value of this category of land will be taken as a percentage of total aggregate adjusted replacement cost. The percentages are set out in Appendix G.

(ii) Undeveloped Land

Undeveloped land will consist of the area of playing fields and exceptionally other amenity land put to beneficial use. Areas which are of no practical use (e.g. shelter belts and steeply sloping banks) should be ignored.

The value of undeveloped land is to taken as the appropriate level for amenity land as stated in Appendix G.

4.6. Stage 4 Decapitalisation

The adjusted cost, net of allowances, and including land value, is to be decapitalised at the lower prescribed rate.

4.7. Stage 5 End Allowances

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

Allowances under this head may be considered for dispersal, poor site layout, piecemeal development, surplusage and any other relevant matters.

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

Appendix A Unit Costs, Cost Guide Reference and Building Use Classification

Building Use Classification

Category (1) Buildings: Main college buildings, whether of traditional or system build construction, intended for permanent use.

Broadly these will comprise the following; class space and other teaching areas, assembly halls, dining halls, administrative offices, staff rooms, libraries, kitchens, music rooms, sports halls which are structurally an integral part of main college buildings, stores which are structurally integral to the main college buildings.

Category (2) Sports buildings

This applies to all separate ‘dry’ sports buildings comprising of sports halls and standard ancillaries such as WCs, changing rooms, ablutions, viewing gallery and fitness rooms.

Indoor swimming pools should be costed separately as shown.

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

Category (3) Temporary Structures

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

The costs for all Category 1, 2 and 3 buildings are exclusive of fees and external works. They are subject to the locational adjustment factors set out in the Cost Guide.

Category (4) Living Accommodation

Generally Category (4) buildings will be caretakers’ houses whilst a few colleges may provide accommodation for students. Where a hereditament is occupied partly for non-domestic and partly for domestic purposes it will be regarded as composite. The GIA of all domestic accommodation blocks should be captured and added to the valuation at the cost level in Table 1. This allows for the correct contract size adjustment calculation. The block should then have the value removed by way of a 100% percentage allowance applied in the domestic column within the NBS valuation sheet.

Category (5) Training Workshops

These are stand-alone industrial type buildings generally used for the training of building or mechanical related trades.

The typical modern training workshops will be of light steel frame with PPM insulated cladding and roller shutter doors to 5m eaves and heated. Older workshops may be constructed from different materials.

The use of this type of building for partial or occasional academic instruction associated with the vocational training should not prevent the building from being considered as a training workshop.

Where significant fully fitted out classroom accommodation is present this should be segregated and valued in line with Category 1 costs. Valuer judgement should be adopted in respect of buildings/configurations that do not clearly fit in the defined categories and descriptions.

This classification should only be used to cost buildings which fall into the above descriptions. Workshops that are structurally integral to the main college building will not fall into this category and should be valued as Category 1. Buildings used for or by the estates or works departments of colleges are more likely to fall into Category 1 and/or 3 and should be valued by reference to the costs as provided above.

Category (6) Minor Buildings

Small buildings such as meter houses, sheds and stores with individual Gross Internal Areas [GIA] of less than 26sq m should not be costed, as they are reflected within the addition for external works.

Appendix B External Works

Notes – 1. The plot ratio is the building GIA expressed as a percentage of the total site area (including building footprint). 2. An appropriate percentage addition should be chosen from the above ranges to reflect the extent of external works within the hereditament using plot ratio as an indicative guide only.

Appendix C Location adjustment

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

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:

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.

Appendix F Age and obsolescence scales

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 Developed and Undeveloped Land Value

Practice note 1: 2017 - The Valuation Basis for rating of colleges of further education

1. Market Appraisal

1.1 Colleges of Further Education

Further Education (FE) generally operates as a series of local catchment areas, which are largely defined by travel-to-learn patterns. Learners and employers primarily choose training they can reasonably commute to on a regular basis. As a consequence, providers recruit the majority of learners from within a short distance (5 miles) of their institution. This pattern is largely consistent across rural and urban areas. There are, however, opportunities for providers to deliver provision in new geographical areas, for example by using outreach centres or offering online and distance learning.

Each local area is generally characterised as having a few large providers (usually colleges) and many smaller providers. Differences in provider size are typically a function of the level of public funding received.

In England colleges generally receive a higher proportion of their income (from 60% to 80%) from the Education Funding Agency to deliver classroom based learning for young people.

In Wales colleges are funded direct from the Welsh Government Department for Education and Skills (DfES).

In addition, colleges have access to funding to deliver higher education provision, either by franchise arrangement with a University or directly from the Higher Education Funding Council for England (HEFCE) and Higher Education Funding Council for Wales (HEFCE). As a consequence, colleges can account for a relatively high proportion of a given local market.

2. Changes from the 2010 Practice Note

There are a number of changes to the approach to valuation most notably at stages 1 and 2. These are detailed below.
- The costs to be applied at Stage 1 relate to the modern substitute and do not vary with the age of the actual buildings as was the approach adopted for the 2010 List.
- The costs relating to temporary buildings and out-buildings do not incorporate age and obsolescence allowances which are now referred to separately.
- The costs relating to external works and fees are now given separately from the building costs
- The Stage 2 Obsolescence allowances and Guidance Notes for college buildings have been revised.
- Residential buildings should be now be captured and entered into the valuation to allow for the correct contract size adjustment.
3. Ratepayer Discussions

Full discussions have taken place with representatives of the College of Further Education sector namely Gerald Eve, Avison Young, Sanderson Weatherall and Altus Group as part of the Group Pre Challenge Review (GRCR) 35443523. The agreed scheme relates to those Colleges of FE valued on the contractor’s basis.

4. Valuation Scheme

Where there is adequate rental evidence, Colleges of Further Education will be valued on rentals basis, however it is envisaged the majority of Colleges of FE will be assessed by reference to the contractor’s basis.

The following basis is also to be used for police training colleges with accommodation and facilities comparable to a college of further education.

4.1 Contractor’s Basis

4.1.1 Stage 1 - Estimated Replacement Cost

(i) Building Costs

Descriptions of building use classification and their associated cost can be found within Appendix A.

The costs shown in Appendix A are for ease of reference. In all cases where a Cost Guide code is shown, that must be input into the NBS template, not the costs shown here. Where the Cost Guide code shows options, the costs shown in this Practice Note should be used to aid selection. Should the Cost Guide show differing costs to those shown in a current version of this Practice Note, please refer to the CCT.

(ii) External Works

The cost of external works is to be added in accordance with Appendix B.

(iii) Location factors

Location factors should be applied in accordance with Appendix C.

(iv) Contract size Adjustment

The aggregate of locationally adjusted building costs and external costs should be subject to contract size adjustment as set out in Appendix D. The allowance will be determined by the cost of the whole hereditament including that of domestic and exempt areas. The allowance is determined by the ERC adjusted by location factor and inclusive of external works addition but net of professional fees.

(v) Professional Fees and Charges

Professional fees and charges are to be added in accordance with Appendix E. Note that minimum fees may be applicable to avoid inversion.

4.1.2 Stage 2 Age and Obsolescence

The age and obsolescence allowances to be applied to the individual building blocks after addition for external works and fees are dependent upon the building classification.

The majority of college buildings should reference the scale within Table 1 of Appendix F. Stand-alone Workshops and Stores should reference Table 2 and the scale for Temporary Buildings is found in Table 3. External sports facilities such as artificial playing surfaces and associated lighting should reference Table 4.

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

Table 1 Civic Obsolescence Allowance is applicable to the main college and sports buildings and caseworkers should take into account the following salient points;

a) The revised age and obsolescence scale 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 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.

Multi-Storey Allowances

Allowances under this heading may be applicable to buildings with inadequate or no passenger lifts. The allowances are set out within Appendix G together with guidance notes around the concept of inadequate lifts. The allowance will not be applicable to buildings built 2005 onwards.

Flat Roof Allowance

Allowances attributable to the presence of a flat roof have been amended to accord with current advice as to both the durability of modern coverings and market perception. Buildings within Categories 1 and 2 with a flat roof are to receive an end allowance as follows:

a) £80m2 is to be applied to the footprint of the flat roof for buildings constructed up to and including 2004.

b) £60m2 is to be applied the footprint of the flat roof for buildings constructed after 2004.

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

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

4.1.3 Stage 3 The Addition for Land

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

(i) Developed Land

Developed land will consist of the footprint of all buildings, associated landscaped areas, roadways, car parks and hard standings, paths, playgrounds and specialised sports surfaces (all weather pitch, tennis courts, outdoor swimming pools, running tracks etc). It will normally consist of the whole site of the school less playing fields. The value of this category of land will be taken as a percentage of total aggregate adjusted replacement cost. The percentages are set out in Appendix H.

(ii) Undeveloped Land

Undeveloped land will consist of the area of playing fields and exceptionally other amenity land put to beneficial use. Areas which are of no practical use (e.g. shelter belts and steeply sloping banks) should be ignored.

The value of undeveloped land is to taken as the appropriate level for amenity land as stated in Appendix H.

4.1.4 Stage 4 Decapitalisation Rate

The ARC of the buildings is aggregated with the land value, and then decapitalised to an annual equivalent at the statutory rate applicable to educational hereditaments in respect of the 2017 Rating List.

4.1.5 Stage 5 End Adjustment

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

Allowances under this head may be considered for dispersal, poor site layout, piecemeal development, surplusage and any other relevant matters.

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

Appendix A

Building Category Definitions

Appendix A Unit Costs, Cost Guide Reference and Building Use Classification

Building Use Classification

Category (1) Buildings: Main college buildings, whether of traditional or system build construction, intended for permanent use.

Broadly these will comprise the following: class space and other teaching areas, assembly halls, dining halls, administrative offices, staff rooms, libraries, kitchens, music rooms, sports halls which are structurally an integral part of main college buildings, stores which are structurally integral to the main college buildings.

Category (2) Sports buildings

This applies to all separate ‘dry’ sports buildings comprising of sports halls and standard ancillaries such as WCs, changing rooms, ablutions, viewing gallery and fitness rooms.

The basic sports hall cost will be applicable to most colleges akin to those found at L/A schools.

More sophisticated dry sports buildings similar to those found on University sites and LA Leisure Centres should be costed at the superior rate.

Indoor swimming pools should be costed separately as shown.

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

Category (3) Temporary Structures

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

The costs for all Category 1, 2 and 3 buildings are exclusive of fees and external works. They are subject to the locational adjustment factors set out in the Cost Guide.

Category (4) Living Accommodation

Generally Category (4) buildings will be caretakers’ houses whilst a few colleges may provide accommodation for students. Where a hereditament is occupied partly for non-domestic and partly for domestic purposes it will be regarded as composite. The GIA of all domestic accommodation blocks should be captured and added to the valuation at the cost level in Table 1. This allows for the correct contract size adjustment calculation. The block should then have the value removed by way of a 100% percentage allowance applied in the domestic column within the NBS valuation sheet.

Category (5) Training Workshops

These are stand-alone industrial type buildings generally used for the training of building or mechanical related trades.

The typical modern training workshops will be of light steel frame with PPM insulated cladding and roller shutter doors to 5m eaves and heated. Older workshops may be constructed from different materials.

The use of this type of building for partial or occasional academic instruction associated with the vocational training should not prevent the building from being considered as a training workshop.

Where significant fully fitted out classroom accommodation is present this should be segregated and valued in line with Category 1 costs. Valuer judgement should be adopted in respect of buildings/configurations that do not clearly fit in the defined categories and descriptions.

This classification should only be used to cost buildings which fall into the above descriptions. Workshops that are structurally integral to the main college building will not fall into this category and should be valued as Category 1. Buildings used for or by the estates or works departments of colleges are more likely to fall into Category 1 and/or 3 and should be valued by reference to the costs as provided above.

Category (6) Minor Buildings

Small buildings such as meter houses, sheds and stores with individual Gross Internal Areas [GIA] of less than 26sq m should not be costed, as they are reflected within the addition for external works.

Appendix B

The Addition for External Works

Notes - 1. The plot ratio is the building GIA expressed as a percentage of the total site area (including building footprint). 2. An appropriate percentage addition should be chosen from the above ranges to reflect the extent of external works within the hereditament using plot ratio as an indicative guide only.

Appendix C

Location adjustment

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

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:

Appendix E

The Addition for Professional Fees

Appendix F

Age and Obsolescence Allowances

Table 1: Civic Buildings Obsolescence Allowances

Table 2 – Workshops and Stores Obsolescence Table

Table 3: Temporary Buildings & Huts Obsolescence Allowances

Table 4 External Sports Facilities Obsolescence Allowances

Appendix G

Multi-Storey Building Allowances

Buildings with inadequate or no passenger lifts

Notes for Multi Storey Allowance

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

It is recognised that lift provision is rarely ideal, and normal deficiencies (such as the inability to cope fully with peak time movements of students) in the operation of multi-storey buildings will be present. It is also recognised, however, that in some instances lift provision may be inadequate to cater for the number and size of floors served and in such circumstances the allowances in Table 1 should be applied.

Buildings completed in 2005 and afterwards are assumed to have adequate lifts to comply with the Disability Discrimination Act and relevant Building Regulations. In the absence of evidence to the contrary, it is to be further assumed that pre-1980 buildings have inadequate or no lifts, but those completed between 1980 and 2005 have adequate lifts. In assessing the adequacy (or otherwise) of pre-2005 buildings each principal building should be considered separately and 2 lifts are to be considered adequate for a building up to an overall GIA of 6,000 m2, with an additional lift required for each additional 6,000 m2.

Appendix H

Developed & Undeveloped Land Values

Table 1 Developed Land

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

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