Day Nursery (Non Domestic Valuation practice notes)

Part of: Non Domestic Valuation practice notes (NI Reval2023)

These Practice Notes were developed for the purpose of revaluing non domestic property in Northern Ireland as part of Reval2023. They were produced primarily as guidance for LPS Valuers to ensure, amongst other things, consistency of approach and practice in rating valuations.


The scope of this Practice Note is solely to ensure a consistent valuation approach for this Property Class/Sub Class/Type for Non Domestic Revaluation 2023 and subsequent entry in the new Valuation List which becomes effective on 1 April 2023.

The basis of valuation for new entries in the Valuation List, and Rating Revision cases after 1 April 2023, is Schedule 12 (2)(1) of the Rates (NI) Order 1977.


This Practice Note refers to property classified as:

Class: Offices
Sub Class: Day Nursery
Type: Former Dwelling, Temporary Building, Other, Conversion, Purpose Built

Day nurseries provide various degrees of day care for children, ranging from full day care for infants, to pre and after school care for those attending school. They are normally run as profit making businesses occupying both converted and purpose built premises. Some may be run by local charities/community associations.

They should not be confused with Nursery Schools, which are part of the education system and valued as part of the schools estate. Though some private day nurseries provide funded pre-school places which are registered with the Education and Library Board, this measure is there for children who do not receive a nursery place within a nursery school.

Legislative Background

Rating Legislation

Schedule 12 Part 1 Paragraph 1 of the Rates (NI) Order 1977 applies.

‘‘Subject to the provisions of this Schedule, for the purposes of this Order the net annual value of a hereditament shall be the rent for which, one year with another, the hereditament might, in its actual state, be reasonably expected to let from year to year, the probable average annual costs of repairs, insurance and other expenses (if any) necessary to maintain the hereditament in its actual state, and all rates, taxes or public charges (if any), being paid by the tenant’’.

Health Authority Registration

Day nurseries are required to be registered with the local Health Care Trust under the provisions of Article 118 of The Children (Northern Ireland) Order 1995.

Planning Legislation

 For planning legislation please see Appendix 1.

Valuation Approach for 2023

The Comparative method of valuation is to be retained as the approach for this type of hereditament.

Rent and Lease Questionnaires

For this class of property Rent and Lease Questionnaires (RALQs) were issued centrally by LPS and analysed by the Practice Note author.


For advice on any aspect of this Practice Note contact LPS on 0300 200 7801.

Appendix 1: Planning Legislation Extract

The Planning (Use Classes) Order (Northern Ireland) 2015.

Day Nurseries are in the same planning use class as doctors’ surgeries etc as shown in the extract below.


Class D1: Community and Cultural Uses

Any use (not including a residential use) –

(a) for the provision of any medical or health services except the use of premises attached to the residence of the consultant or practitioner;

(b) as a crèche, day nursery, after school facility or day centre;

Commercial offices come under the following in the planning legislation:


Class A2: Financial, Professional and other Services

Use for the provision of services which it is appropriate to provide in a shopping area, where the services are provided principally to visiting members of the public including -

  1. financial services; or
  2. professional services.


Class B1: Business

Use –

  1. as an office other than a use within Class A2 (Financial,           

 Professional and other services);

  1. as a call centre; or
  2. for research and development which can be carried out without detriment to amenity by reason of noise, vibration, smell, fumes, smoke, soot, ash, dust or grit.

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