The scope of this Practice Note is solely to ensure a consistent valuation approach for this Property Class/ Subclass/ 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 (Includes Banks and Post Offices)
Sub Class: Commercial Office
Type: Dentist Surgery, Doctor’s Surgery, Health Centre, Health Clinic, Veterinary Surgery
There are currently 827 entries in the Valuation List for this property classification including Dentist’s Surgery, Doctor’s Surgery, Health Centre, Health Clinic or Veterinary Surgery.
This Practice Note does not apply to Primary Care Centres. These should be valued in line with the Hospitals Practice Note.
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”.
Valuation approach for 2023
The Comparative method of valuation is to be retained as the approach for this type of hereditament.
Where this type of subject has the characteristics of an office, retail or industrial building and/or is located within an established location for this type of properties, prevailing rental levels for that type of property should provide the best evidence of Net Annual Value.
In Wellbeing & Treatment Centres, there may be some Trust occupation augmented by a range of other users e.g., Pharmacies, Surgeries, Libraries etc. These may comprise several individual hereditaments, and regard must be had to the rating concept of ‘paramount control’ in establishing NAV. The basis of valuation remains the Comparative method.
If the property is a purpose built ‘well-being centre’, then it should be valued on a Contractor’s basis. It is unlikely that suitable rental evidence will exist for the following type of property and therefore the Contractor’s basis may be deemed appropriate. That is, a purpose built (or purpose adapted) specialist units, e.g. Primary Care Centre which provides services over and above those currently provided within traditional Health centres and facilitates the concentration of health and social care services within one site. E.g. Physiotherapy, Occupational Therapy, Dental, Podiatry, Speech and language, Family Planning, Clinical Psychology, Health Centre’s converted from other specialist buildings, e.g. hospitals or schools.
If a Health Centre is situated within a converted wing of a hospital and is in the occupation of the Trust, then it would be valued on the Contractor’s basis in line with that hospital.
Rent and Lease Questionnaire
For this class of property Rent and Lease Questionnaires (RALQs) were issued centrally by LPS and analysed.
For advice on any aspect of this Practice Note contact LPS on 0300 200 7801.
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