Colleges of further education

This publication is intended for Valuation Officers. It may contain links to internal resources that are not available through this version.

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 鈥渇urther education鈥 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.听 Funding in England is provided via the Education and Skills Funding Agency (ESFA) and is based on several student roll related formulae.听 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听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.听 The size of the听hereditament听and its complexity will determine the G or S classification and liaison should take with the Non-Domestic Rating Unit听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.

5.1 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鈥檚 best is not necessarily an exactly similar structure. A more simple modern substitute may be acceptable, perhaps more appropriate for the occupier鈥檚 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 鈥渃ollege land should be valued in the light of residential values鈥 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)听 where a rental comparison 听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听before听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鈥檚 basis will apply to larger, purpose built, campus style colleges. 听

The Lands Tribunal鈥檚 decision in听the provides guidance on when the application of an rentals approach is appropriate.

Valuation considerations听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听

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鈥檚 basis of valuation - Guidance - 伊人直播 (www.gov.uk) . Details of specific to the application of this scheme are set out in the relevant Practice Note for each听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 鈥渆ducational听hereditament鈥 to which the lower statutory decapitalisation statutory rate applies. It should be noted though that qualification as an educational hereditament is subject to a 鈥渨holly, or mainly so used鈥 test, and further tests as to the nature of the occupation. In selecting the appropriate rate reference should be made to 听. 听

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 鈥 Part A - Property Used for Disabled Persons - Guidance - 伊人直播 (www.gov.uk)

9. Valuation support

Rentals comparison valuations should be captured in RSA.

Contractors鈥 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鈥檚 basis.

The contractor鈥檚 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听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听is applicable to the main college and sports buildings and caseworkers should take into account the following salient points;

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

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

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

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

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

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

g) To qualify as a substantially un-modernised building it is expected that the building will predominantly have the following:

  • single glazed windows;
  • original internal layout;
  • original ceiling height, with no suspended ceilings;
  • original external walls;
  • pre 1980 internal finishes (flooring, ceiling and walls, internal doors and fixtures and fittings).

h) In respect of functional and technological obsolescence, for buildings that remain in operational use, the scales include adjustments to reflect functional and technological deficiencies observable in buildings typical of their original period of construction but taking account of the level of assumed cyclical refurbishment reflected in the physical depreciation element of the scales.

i) The type of functional and technological obsolescence factors already reflected in the scales include the following:

  • poor energy efficiency and/or environmental sustainability;
  • inappropriate layout inhibiting flexible and efficient space utilization;
  • modern health & safety, fire or building regulations that preclude or limit the original purposes of the building;
  • dated design practices that restrict modern usage (such as lack of/or minimal floor and ceiling voids);
  • the absence of modern space heating or air conditioning systems within a building;

j) It follows that only where buildings display specific functional deficiencies or issues of technological redundancy, that are atypical for their age, should consideration be given to applying an additional allowance.

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

4.3 Multi-Storey Allowances

Notes for Multi-Storey Allowance

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

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

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

Buildings with inadequate or no passenger lifts

Floors Percentage Deduction
2 Main Floors Nil
3 Main Floors 5% overall
4 Main Floors and above 10% overall

4.4. Flat Roof Allowances

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

  • 拢80尘2 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听Appendix G.

(ii) Undeveloped Land

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

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

4.6. Stage 4 Decapitalisation

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

4.7. Stage 5 End Allowances

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

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

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

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

Description Cost Guide Reference Cost (拢/m2 unless stated otherwise)
Main Buildings (Category 1) 42AC01 拢2,200
Sports Hall (Category 2) 42AC02 拢1,279
Leisure Centre (Dry) - Superior (Category 2) STF020 拢1,860
Temporary & Portable Buildings (without WC) (Category 3) 42AC04 拢728
Temporary & Portable Buildings (with WC) (Category 3) 42AC05 拢833
Living accommodation - Caretakers (Category 4) 42AC06 拢1,289
Living accommodation - Halls of Residence (Category 4) 拢1,677
Training workshops (Category 5) 42AC07 拢1,265 (less 25% uninsulated, +/- 2% for each 0.5m eaves variation from 5m standard)
Sports Facilities (as detailed below)
Indoor pool STD020 拢2,643
Squash courts STS033 拢1,403
Tennis Courts Select from cost guide according to specification and number 53U21A - 53U70P
Athletics tracks 6 lane synthetic each 63P00A 拢541,357 per item
Athletics tracks 8 lane synthetic each 63P00C 拢736,236 per item
Athletics tracks 2 lane synthetic (with 4 lane home) each 63P00L 拢233,135 per item
Sports Grounds Floodlighting Select from cost guide according to specification and number 63P10A - 63P20P
Full Pitch flood lighting Hockey STK020 Football STH020 Rugby STI020 拢74,750 per pitch 拢70,004 per pitch 拢70,004 per pitch
All weather artificial turf pitches- Astroturf (sand filled not dressed) STK020 拢77
All weather artificial turf pitches- Water based hockey pitches STL020 拢125
All weather artificial turf pitches- 3G Multi Sports surface STM020 拢104
Tarmacadam playing surfaces (sports use not playgrounds) 33U025 33U030 拢41 (in excess of 6,000m2) 拢50 (up to 6,000m2)
Crushed stone or 鈥楻edgra鈥 playing surfaces 33U010 拢45

Building Use Classification

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

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

Category (2) Sports buildings听

This applies to all separate 鈥榙ry鈥 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 鈥淗orsa鈥 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听

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

Category (5) Training Workshops

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

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

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

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

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

Category (6) Minor Buildings

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

Appendix B External Works

Classification Site description Percentage addition
Restricted Site Town centre or island site with 90% or greater building ratio, typically with no more than a small yard or garden area, and either no car parking, or a very limited number of spaces within the hereditament. 2%
As above, but typically with an 80% to 90% building ratio, limited parking, external lighting and landscaping and some boundary fencing. 2.5%
Intermediate Site Site typically with 50% to 75% building ratio, some landscaping around buildings, secure boundary fencing, adequate staff parking, external lighting and landscaping with limited general parking within the hereditament 5%
As above, but typically with 25% to 50% building ratio, landscaping around buildings, secure boundary fencing, external lighting, adequate parking within the hereditament which falls short of full requirements 7.5%
Extensive Site Site typically with about 25% building ratio, landscaping around buildings, secure boundary fencing, external lighting and adequate parking within the hereditament for all staff and other users. 12.5%

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

Appendix C Location adjustment

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

NORTH EAST REGION NORTH WEST REGION
Durham County 0.91 Cheshire 0.97
Northumberland 0.95 Greater Manchester 0.97
Tees Valley 0.94 Lancashire 0.97
Tyne and Wear 0.91 Merseyside 0.97
Cumbria 0.98
YORKSHIRE and HUMBERSIDE REGION SOUTH WESTERN REGION
East Riding and North Lincolnshire 0.92 Cornwall 1.05
North Yorkshire 0.98 Devon 1.01
South Yorkshire 0.94 Dorset 1.04
West Yorkshire 0.92 Gloucestershire 1.03
North Somerset 1.02
Somerset 1.01
Wiltshire 1.03
EAST MIDLANDS REGION WEST MIDLANDS REGION
Derbyshire 1.05 Herefordshire 0.92
Leicestershire and Rutland 1.04 Shropshire 0.95
Lincolnshire 1.03 Staffordshire 0.94
Northamptonshire 1.09 Warwickshire 0.98
Nottinghamshire 1.03 West Midlands 0.95
Worcestershire 0.98
EAST OF ENGLAND REGION SOUTH EAST REGION (EXCL. LONDON)
Bedfordshire 1.04 Berkshire 1.08
Cambridgeshire 1.00 Buckinghamshire 1.07
Essex 1.03 East Sussex 1.09
Hertfordshire 1.07 Hampshire 1.05
Norfolk 0.96 Isle of Wight 1.05
Suffolk 0.97 Kent 1.09
Oxfordshire 1.04
Surrey 1.13
West Sussex 1.08
WALES CENTRAL LONDON SOUTH
North Wales Lambeth 1.28
Flintshire 0.89 Southwark 1.28
Conwy 0.93 Wandsworth 1.30
Denbighshire 0.90
Gwynedd 0.97 GREATER LONDON NORTH EAST
Isle of Anglesey 0.95 Hackney 1.25
Wrexham 0.91 Haringey 1.31
Newham 1.18
Mid Wales Tower Hamlets 1.26
Carmarthenshire 0.98 Barking and Dagenham 1.18
Ceredigion 0.99 Enfield 1.18
Powys 0.97 Havering 1.09
Pembrokeshire 0.92 Redbridge 1.15
Waltham Forest 1.18
South Wales GREATER LONDON NORTH WEST
Blaenau Gwent 0.96 Barnet 1.23
Bridgend 0.93 Brent 1.22
Caerphilly 0.93 Ealing 1.27
Cardiff 0.94 Harrow 1.18
Monmouthshire 0.99 Hillingdon 1.16
Neath Port Talbot 0.88 Hounslow 1.16
Newport 0.95
Rhondda, Cynon, Taff 0.93 GREATER LONDON SOUTH EAST
Swansea 0.93 Bexley 1.25
Torfaen 0.91 Bromley 1.21
Vale of Glamorgan 0.97 Croydon 1.24
Greenwich 1.24
CENTRAL LONDON NORTH Lewisham 1.21
Camden 1.32
City of London 1.24 GREATER LONDON SOUTH WEST
Hammersmith and Fulham 1.32 Kingston Upon Thames 1.26
Islington 1.29 Merton 1.24
Kensington and Chelsea 1.34 Richmond Upon Thames 1.22
Westminster 1.30 Sutton 1.20

Appendix D Contract Size Adjustment

The adjustment for contract size should be made having regard to the total ERC (after adjustment for location but before the addition for fees) in accordance with the following scales:

ERC 拢 % Adjustment
Up to 0.25 million + 10% max
0.5 million + 8%
0.75 million + 6%
1.0 million + 4%
1.5 million + 3%
2.0 million + 2%
3.0 million + 1%
4.0 million 0%
5.0 million - 0.5%
6.0 million - 1%
8.0 million - 1.5%
10.0 million - 2%
15.0 million - 3%
18.0 million - 4%
20.0 million - 5%
25.0 million - 6%
35.0 million - 9%
Over 40.0 million - 10% max
NB. Intermediate figures may be interpolated.

Appendix E Professional Fees and charges

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

Size of Contract % Adjustment
Sums up to 拢750,000 14%
拢750,000 to 拢1,499,000 13.5%
拢1,500,000 to 拢3,999,999 11.5%
拢4,000,000 to 拢7,499,999 10.5%
拢7,500,000 to 拢14,999,999 9.5%
Over 拢15,000,000 9%

Appendix F Age and obsolescence scales

Table 1: Civic Buildings Obsolescence Allowances

Age % Obsolescence Age % Obsolescence
2023 0.00% 1986 43.75%
2022 0.75% 1985 44.50%
2021 1.50% 1984 45.00%
2020 2.50% 1983 48.00%
2019 3.50% 1982 51.00%
2018 4.75% 1981 54.00%
2017 6.00% 1980 56.75%
2016 7.25% 1979 57.25%
2015 8.50% 1978 57.50%
2014 10.00% 1977 58.00%
2013 11.25% 1976 58.25%
2012 12.75% 1975 58.50%
2011 14.25% 1974 58.50%
2010 15.75% 1973 58.75%
2009 17.25% 1972 59.00%
2008 18.75% 1971 59.00%
2007 20.25% 1970 59.25%
2006 21.75% 1969 59.25%
2005 23.25% 1968 60.00%
2004 24.50% 1967 60.00%
2003 26.00% 1966 60.00%
2002 27.50% 1965 60.00%
2001 28.75% 1964 60.00%
2000 30.00% 1963 60.00%
1999 31.25% 1962 60.00%
1998 32.50% 1961 60.00%
1997 33.75% 1960 60.00%
1996 35.00% 1959 57.50%
1995 36.00% 1958 55.00%
1994 37.00% 1957 55.00%
1993 38.00% 1956 55.00%
1992 39.00% 1955 55%
1991 40.00% 1954 55%
1990 40.75% 1953 and earlier 55%
1989 41.50%
1988 42.25%
1987 43.00%

Table 2 鈥 Industrial Buildings Obsolescence Table

Age % Obsolescence Age % Obsolescence
2023 0.00% 1994 24.00%
2022 0.50% 1993 25.00%
2021 1.00% 1992 26.00%
2020 1.50% 1991 27.00%
2019 2.00% 1990 28.00%
2018 2.50% 1989 29.00%
2017 3.00% 1988 30.00%
2016 3.50% 1987 31.00%
2015 4.00% 1986 32.00%
2014 4.50% 1985 33.00%
2013 5.00% 1984 34.00%
2012 6.00% 1983 35.00%
2011 7.00% 1982 36.00%
2010 8.00% 1981 37.00%
2009 9.00% 1980 38.00%
2008 10.00% 1979 39.00%
2007 11.00% 1978 40.00%
2006 12.00% 1977 41.00%
2005 13.00% 1976 42.00%
2004 14.00% 1975 43.00%
2003 15.00% 1974 44.00%
2002 16.00% 1973 45.00%
2001 17.00% 1972 46.00%
2000 18.00% 1971 47.00%
1999 19.00% 1970 48.00%
1998 20.00% 1969 49.00%
1997 21.00% 1968 and earlier 50.00% Max
1996 22.00%
1995 23.00%

Table 3 - Temporary Buildings Obsolescence Table

Age % Obsolescence Age % Obsolescence
2023 0.00% 2002 31.50%
2022 1.50% 2001 33.00%
2021 3.00% 2000 34.50%
2020 4.50% 1999 36.00%
2019 6.00% 1998 37.50%
2018 7.50% 1997 39.00%
2017 9.00% 1996 40.50%
2016 10.50% 1995 42.00%
2015 12.00% 1994 43.50%
2014 13.50% 1993 45.00%
2013 15.00% 1992 46.50%
2012 16.50% 1991 48.00%
2011 18.00% 1990 49.50%
2010 19.50% 1989 51.00%
2009 21.00% 1988 52.50%
2008 22.50% 1987 54.00%
2007 24.00% 1986 55.50%
2006 25.50% 1985 57.00%
2005 27.00% 1984 58.50%
2004 28.50% 1983 and earlier 60.00% Max
2003 30.00%

Table 4 External sports facilities obsolescence allowances

Age % Obsolescence Age % Obsolescence
2023 0.00% 2001 17.00%
2022 0.50% 2000 18.00%
2021 1.00% 1999 19.00%
2020 1.50% 1998 20.00%
2019 2.00% 1997 21.00%
2018 2.50% 1996 22.00%
2017 3.00% 1995 23.00%
2016 3.50% 1994 24.00%
2015 4.00% 1993 25.00%
2014 4.50% 1992 25.00%
2013 5.00% 1991 25.00%
2012 6.00% 1990 25.00%
2011 7.00% 1989 25.00%
2010 8.00% 1988 25.00%
2009 9.00% 1987 25.00%
2008 10.00% 1986 25.00%
2007 11.00% 1985 25.00%
2006 12.00% 1984 25.00%
2005 13.00% 1983 25.00%
2004 14.00% 1982 25.00%
2003 15.00% 1981 25.00%
2002 16.00% 1980 and earlier 25.00% Max

Appendix G Developed and Undeveloped Land Value

Region Developed Land % of adjusted ERC Undeveloped Land per ha
South East 15.25 拢100,000
East Midlands 4.25 拢75,000
East 17.50 拢75,000
North East 5.00 拢50,000
North West 8.50 拢75,000
South West 10.50 拢75,000
West Midlands 7.75 拢75,000
Yorkshire and Humberside 8.00 拢75,000
Central London North 50.00 拢250,000
Central London South 30.00 拢250,000
Greater London NW 21.50 拢200,000
Greater London SW 30.00 拢200,000
Greater London NE 21.00 拢200,000
Greater London SE 19.00 拢200,000
Cardiff 18.75 拢40,000
Rest of South Wales 8.50 拢35,000
Mid and North Wales 6.50 拢40,000

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.听 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.听听

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.听

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听听
  • 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鈥檚 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鈥檚 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鈥檚 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)听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.听 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)听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)听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.听 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) 拢80尘2 is to be applied to the footprint of the flat roof for buildings constructed up to and including 2004.

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

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

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

4.1.3 Stage 3 The Addition for Land

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

(i) Developed Land

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

(ii) Undeveloped Land

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

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

4.1.4 Stage 4 Decapitalisation Rate

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

4.1.5 Stage 5 End Adjustment

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

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

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

Appendix A

Building Category Definitions

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

Description Cost Guide Reference Cost (拢/m2 unless stated otherwise)
Main Buildings (Category 1) 42AC01 拢1,766
Sports Hall 鈥 Standard (Category 2) 42AC02 拢1,011
Leisure Centre (Dry) 鈥 Superior (Category 2) STF020 拢1470
Temporary & Portable Buildings (without WC) (Category 3) 42AC04 拢619 (less 12.5% no heating)
Temporary & Portable Buildings (with WC) (Category 3) 42AC05 拢709 (less 12.5% no heating)
Living accommodation -Caretakers (Category 4) 42AC06 拢1,097
Living accommodation 鈥 Halls of residence (Category 4) 拢1326
Training workshops (Category 5) 42AC07 拢1,000 (less 25% uninsulated, +/- 2% for each 0.5m eaves variation from 5m standard)
Sports Facilities (as detailed below)
Indoor pool STD020 拢2,089
Squash courts STS033 拢1,268
Tennis Courts Select from cost guide according to specification and number 53U21A - 53U70P
Athletics tracks 6 lane synthetic each 63P00A 拢435,087 per item
Athletics tracks 8 lane synthetic each 63P00C 拢592,321 per item
Athletics tracks 2 lane synthetic (with 4 lane home) each 63P00L 拢190,954 per item
Sports Grounds Floodlighting Select from cost guide according to specification and number 63P10A - 63P20P
Full Pitch flood lighting Hockey STK020 Football STH020 Rugby STI020 拢63,000 per pitch 拢59,000 per pitch 拢59,000 per pitch
All weather artificial turf pitches- Astroturf (sand filled not dressed) STK020 拢65
All weather artificial turf pitches- Water based hockey pitches STL020 拢106
All weather artificial turf pitches- 3G Multi Sports surface STM020 拢88
Tarmacadam playing surfaces (sports use not playgrounds) 33U030 拢43
Crushed stone or 鈥楻edgra鈥 playing surfaces 33U010 拢38

Building Use Classification

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

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

Category (2) Sports buildings

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

Category (5) Training Workshops

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

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

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

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

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

Category (6) Minor Buildings

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

Appendix B

The Addition for External Works

Classification Site description Percentage addition
Restricted Site Town centre or island site with 90% or greater building ratio, typically with no more than a small yard or garden area, and either no car parking, or a very limited number of spaces within the hereditament. 2%
As above, but typically with an 80% to 90% building ratio, limited parking, external lighting and landscaping and some boundary fencing. 2.5%
Intermediate Site Site typically with 50% to 75% building ratio, some landscaping around buildings, secure boundary fencing, adequate staff parking, external lighting and landscaping with limited general parking within the hereditament 5%
As above, but typically with 25% to 50% building ratio, landscaping around buildings, secure boundary fencing, external lighting, adequate parking within the hereditament which falls short of full requirements 7.5%
Extensive Site Site typically with about 25% building ratio, landscaping around buildings, secure boundary fencing, external lighting and adequate parking within the hereditament for all staff and other users. 12.5%

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

Appendix C

Location adjustment

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

NORTH EAST REGION NORTH WEST REGION
Durham County 0.98 Cheshire 0.91
Northumberland 1.02 Greater Manchester 0.91
Tees Valley 1.01 Lancashire 0.91
Tyne & Wear 0.98 Merseyside 0.91
Cumbria 0.91
YORKSHIRE & HUMBERSIDE REGION SOUTH WESTERN REGION
East Riding and North Lincolnshire 0.91 Cornwall 1.03
North Yorkshire 0.97 Devon 1.01
South Yorkshire 0.93 Dorset 1.03
West Yorkshire 0.91 Gloucestershire 1.02
North Somerset 1.01
Somerset 1.00
Wiltshire 1.02
EAST MIDLANDS REGION WEST MIDLANDS REGION
Derbyshire 1.06 Herefordshire 0.91
Leicestershire and Rutland 1.04 Shropshire 0.93
Lincolnshire 1.05 Staffordshire 0.92
Northamptonshire 1.10 Warwickshire 0.96
Nottinghamshire 1.04 West Midlands 0.94
Worcestershire 0.96
EAST OF ENGLAND REGION SOUTH EAST REGION (EXCL. LONDON)
Bedfordshire 1.03 Berkshire 1.12
Cambridgeshire 0.99 Buckinghamshire 1.11
Essex 1.04 East Sussex 1.14
Hertfordshire 1.07 Hampshire 1.09
Norfolk 0.96 Isle of Wight 1.08
Suffolk 0.98 Kent 1.13
Oxfordshire 1.08
Surrey 1.17
West Sussex 1.12
WALES CENTRAL LONDON SOUTH
North Wales Lambeth 1.17
Flintshire 0.90 Southwark 1.17
Conwy 0.94 Wandsworth 1.19
Denbighshire 0.91
Gwynedd 0.98 GREATER LONDON NORTH EAST
Isle of Anglesey 0.96 Hackney 1.15
Wrexham 0.93 Haringey 1.18
Newham 1.08
Mid Wales Tower Hamlets 1.15
Carmarthenshire 0.98 Barking and Dagenham 1.06
Ceredigion 1.01 Enfield 1.08
Powys 0.99 Havering 0.98
Pembrokeshire 0.93 Redbridge 1.05
Waltham Forest 1.07
South Wales GREATER LONDON NORTH WEST
Blaenau Gwent 0.97 Barnet 1.09
Bridgend 0.95 Brent 1.11
Caerphilly 0.95 Ealing 1.16
Cardiff 0.96 Harrow 1.06
Monmouthshire 1.01 Hillingdon 1.07
Neath Port Talbot 0.90 Hounslow 1.06
Newport 0.96
Rhondda, Cynon, Taff 0.94 GREATER LONDON SOUTH EAST
Swansea 0.94 Bexley 1.12
Torfaen 0.94 Bromley 1.09
Vale of Glamorgan 0.98 Croydon 1.12
Greenwich 1.13
CENTRAL LONDON NORTH Lewisham 1.10
Camden 1.19
City of London 1.11 GREATER LONDON SOUTH WEST
Hammersmith & Fulham 1.18 Kingston Upon Thames 1.14
Islington 1.16 Merton 1.13
Kensington & Chelsea 1.23 Richmond Upon Thames 1.12
Westminster 1.19 Sutton 1.10

Appendix D

Contract Size Adjustment

The adjustment for contract size should be made having regard to the total ERC (after adjustment for location but before the addition for fees) in accordance with the following scales:

ERC 拢 % Adjustment
Up to 0.25 million + 10% max
0.5 million + 8%
0.75 million +6%
1.0 million +4%
1.5 million +2%
2.0 million +1%
3.0 million ZERO
4.0 million -1%
5.0 million -2%
7.0 million -3%
10.0 million -4%
15.0 million -5%
18.0 million -6%
20.0 million -7%
25.0 million -8%
35.0 million -9%
Over 40.0 million - 10.0% MAX
NB. Intermediate figures may be interpolated.

Appendix E

The Addition for Professional Fees

Estimated Replacement Cost (ERC) Fee Level
Sums up to 拢750,000 14%
拢750,000 to 拢1,500,000 13%
拢1,500,000 to 拢4,000,000 11.5%
拢4,000,000 to 拢7,500,000 10.5%
拢7,500,000 to 拢15,000,000 9.5%
Over 拢15,000,000 9.0%

Appendix F

Age and Obsolescence Allowances

Table 1: Civic Buildings Obsolescence Allowances

Year of Building Completion % Age and Obsolescence Allowance Year of Building Completion % Age and Obsolescence Allowance
2017 0.00% 1985 40.00%
2016 0.75% 1984 40.75%
2015 1.50% 1983 44.00%
2014 2.50% 1982 47.25%
2013 3.50% 1981 50.50%
2012 4.75% 1980 53.75%
2011 6.00% 1979 54.50%
2010 7.25% 1978 55.00%
2009 8.50% 1977 55.50%
2008 10.00% 1976 56.00%
2007 11.25% 1975 56.50%
2006 12.75% 1974 56.75%
2005 14.25% 1973 57.25%
2004 15.75% 1972 57.50%
2003 17.25% 1971 58.00%
2002 18.75% 1970 58.25%
2001 20.25% 1969 58.50%
2000 21.75% 1968 58.50%
1999 23.25% 1967 58.75%
1998 24.50% 1966 59.00%
1997 26.00% 1965 59.00%
1996 27.50% 1964 59.25%
1995 28.75% 1963 59.25%
1994 30.00% 1962 60.00%
1993 31.25% 1961 60.00%
1992 32.50% 1960 60.00%
1991 33.75% 1959 57.50%
1990 35.00% 1958 55.00%
1989 36.00% 1957 55.00%
1988 37.00% 1956 55.00%
1987 38.00% 1955 and earlier 55.00%
1986 39.00%

Table 2 鈥 Workshops and Stores Obsolescence Table

Year of Building Completion % Age and Obsolescence Allowance Year of Building Completion % Age and Obsolescence Allowance
2017 0.00% 1985 27%
2016 0.50% 1984 28%
2015 1.00% 1983 29%
2014 1.50% 1982 30%
2013 2.00% 1981 31%
2012 2.50% 1980 32%
2011 3.00% 1979 33%
2010 3.50% 1978 34%
2009 4.00% 1977 35%
2008 4.50% 1976 36%
2007 5% 1975 37%
2006 6% 1974 38%
2005 7% 1973 39%
2004 8% 1972 40%
2003 9% 1971 41%
2002 10% 1970 42%
2001 11% 1969 43%
2000 12% 1968 44%
1999 13% 1967 45%
1998 14% 1966 46%
1997 15% 1965 47%
1996 16% 1964 48%
1995 17% 1963 49%
1994 18% 1962 50%
1993 19% 1961 50%
1992 20% 1960 50%
1991 21% 1959 50%
1990 22% 1958 50%
1989 23% 1957 50%
1988 24% 1956 50%
1987 25% 1955 and earlier 50%
1986 26%

Table 3: Temporary Buildings & Huts Obsolescence Allowances

Age % Obsolescence Age % Obsolescence
2017 0.00% 1996 31.50%
2016 1.50% 1995 33.00%
2015 3.00% 1994 34.50%
2014 4.50% 1993 36.00%
2013 6.00% 1992 37.50%
2012 7.50% 1991 39.00%
2011 9.00% 1990 40.50%
2010 10.50% 1989 42.00%
2009 12.00% 1988 43.50%
2008 13.50% 1987 45.00%
2007 15.00% 1986 46.50%
2006 16.50% 1985 48.00%
2005 18.00% 1984 49.50%
2004 19.50% 1983 51.00%
2003 21.00% 1982 52.50%
2002 22.50% 1981 54.00%
2001 24.00% 1980 55.50%
2000 25.50% 1979 57.00%
1999 27.00% 1978 58.50%
1998 28.50% 1977 60.00%
1997 30.00% Pre 1976 By Agreement

Table 4 External Sports Facilities Obsolescence Allowances

Age % Obsolescence Age % Obsolescence
2017 0.00% 1995 17.00%
2016 0.50% 1994 18.00%
2015 1.00% 1993 19.00%
2014 1.50% 1992 20.00%
2013 2.00% 1991 21.00%
2012 2.50% 1990 22.00%
2011 3.00% 1989 23.00%
2010 3.50% 1988 24.00%
2009 4.00% 1987 25.00%
2008 4.50% 1986 25.00%
2007 5.00% 1985 25.00%
2006 6.00% 1984 25.00%
2005 7.00% 1983 25.00%
2004 8.00% 1982 25.00%
2003 9.00% 1981 25.00%
2002 10.00% 1980 25.00%
2001 11.00% 1979 25.00%
2000 12.00% 1978 25.00%
1999 13.00% 1977 25.00%
1998 14.00% 1976 25.00%
1997 15.00% 1975 25.00%
1996 16.00% 1974 & earlier 25.00% Max

Appendix G

Multi-Storey Building Allowances

Buildings with inadequate or no passenger lifts

Floors Percentage Deduction
2 Main Floors Nil
3 Main Floors 5% overall
4 Main Floors and above 10% overall

Notes for Multi Storey Allowance

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

  • It is recognised that lift provision is rarely ideal, and normal deficiencies (such as the inability to cope fully with peak time movements of students) in the operation of multi-storey buildings will be present.听 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

Region Developed land % of ARC
Central London N 51.00%
Central London S 25.50%
Greater London NW 11.25%
Greater London SW 29.50%
Greater London NE 16.50%
Greater London SE 21.00%
North East 4.25%
North West 9.00%
Yorkshire & Humberside 8.50%
East Midlands 4.25%
West Midlands 7.50%
East of England 14.25%
South East 13.50%
South West 8.25%
Mid & North Wales 6.75%
Rest of South Wales 9.00%
Cardiff 16.25%

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

Table 2 Undeveloped Land Value

Amenity land values to be use by region

Geographic Region 拢 per hectare (ha)
Central London N 拢250,000
Central London S 拢250,000
GLNW 拢250,000
GLSW 拢250,000
GLNE 拢250,000
GLSE 拢250,000
North East 拢50,000
North West 拢75,000
Yorkshire & Humberside 拢75,000
East Midlands 拢75,000
West Midlands 拢75,000
East of England 拢75,000
South East 拢100,000
South West 拢75,000
Mid & North Wales 拢30,000
South Wales (excl. Cardiff) 拢35,000
Cardiff 拢40,000

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