Village halls, church halls, scout huts etc and community centres
This publication is intended for Valuation Officers. It may contain links to internal resources that are not available through this version.
1.1 Co-ordination
Charitable Village Halls are subject to the Co-ordination arrangements set out in the relevant Practice Note.
1.2 General
This paragraph concerns halls or community centres run by local charitable trusts as opposed to other halls which may be occupied by parish councils or are church halls.
These halls are run by village hall management committees for a charitable trust set up for the hall. Such halls were and are often erected following public subscription, benefaction or grants.
Halls vary considerably in size as well as quality and modernity.
Management committees are generally made up of user group representatives and elected members. The trust deed will have been approved by the Charity Commissioners and sets out the way in which the hall may be used and run. Income will be from the user groups (eg playgroups, senior citizens clubs, youth organisations, etc) and from single events such as wedding receptions.
Discretionary relief from rates for charitable occupations of 80% will be available and the billing authority may at its discretion increase this to 100%.
1.3 Survey Requirements
The basis of measurement for this class is Gross Internal Area (GIA). Reference should be made to the VO Code of Measuring Practice for Rating Purposes in England and Wales.
1.4 Basis of Valuation
Regard should be had to the actual occupier as a potential and in many cases most likely tenant and consideration given to the rent which would be agreed if the trust were not in occupation and a landlord had the property vacant and to let and was inviting bids.
1.5 Valuation Considerations
Factors to take into account include:-
a. the location, including rurality, and nature of the hall
b. the construction, size, maintenance liability and facilities provided
c. the population served
d. possible alternative uses within the confines of rebus sic stantibus
e. other possible tenants, eg the parish council or an independent club
f. the ability to pay of likely tenants
g. rental evidence.
It may be appropriate to have regard to the contractor’s basis, particularly where a hall has recently been constructed, as giving some indication of rental value. Care must be exercised following the maxim that “cost does not necessarily equal value”.
Church Clubs forming part of Church Halls, Chapel Halls or similar buildings are exempt if the conditions of para 11 of Schedule 5 LGFA 1988 are fulfilled. These specify that the hall must be used in connection with a place of public religious worship, (which either belongs to the Church of England or the Church of Wales, or has been certified by law as a place of religious worship), and for the purposes of the organisation responsible for the conduct of public religious worship in that place. These provisions are dealt with more fully in RM 4:8.9.
Many Community Centres provided by local authorities are conducted on similar lines to members’ clubs and when considering who is in rateable occupation of this class of hereditament Valuation Officers should determine who is in paramount control of the use of the premises.
If the local authority can be shown to be in paramount control and, consequently, in rateable occupation, the assessment should be determined in the absence of reliable rental evidence by reference to the contractor’s basis method.
The Lands Tribunal decision in Addington Community Association v Croydon Borough Council and Gudgion (VO): LT 1967 RA 96 considered the ability to pay principle following the decision in Tomlinson (VO) v Plymouth Argyle Football Co Ltd (CA 1960: 53 R&IT 297) and may be cited where it is contended that the cost of the buildings considerably exceeds what is really necessary. This case was however decided on its own facts and the valuer should adopt a prima facie assumption that a community centre constructed for a local authority meets the needs of that authority and that its adjusted cost is indicative of value.
Where it is considered that a Community Centre is conducted as a members’ club and that the club is in rateable occupation, the assessment should be determined in accordance with the principles set out in RM5:260 although the presence of the local authority as a potential bidder should not be disregarded.
1. Market Appraisal
This property class encompasses a number of property types including traditional village halls, purpose-built community centres and smaller huts used by the scouts, army, air and sea cadets.
The organisations that typically occupy this class of property are largely dependent on grants and loans from local or central government or are required to self-fund through local initiatives. The Rural Community Buildings Loan Fund also plays a crucial role in helping community groups renovate, refurbish and construct buildings such as village halls, church halls and community centres.
The sector contains a number of charitable occupiers. In a report the Charity Commission noted that of the 10,000 village halls in England, over 9000 village halls and community centres are occupied by bodies recognised as charities representing more than 5% of the Charities Register. This is particularly prevalent in rural areas where demographic changes have resulted in halls serving an increasingly elderly population.
The Charity Commission urges community hall operators to be more dynamic in their outlook and search to provide relevant activities to attract the local population. Consequently, this has meant that some community halls have adapted and broadened their services to be seen as providing a community hub.
The 1990s / early 2000s saw a steady decline in Scout Membership however a revamp of the organisation saw an uptake in new members. By 2009 the Scout Association reported its biggest increase in membership since 1972 and current statistics demonstrate there have now been 15 years of sustained youth growth through to 2020. This follows the 2014-18 strategic plan which focused upon Growth, Inclusivity, Youth-Shaped Scouting and Community Impact and their new ‘Skills for Life’ strategy seeks to deliver continued growth from 2018 through to 2023. 2020/21 was an exceptional year and membership declined steeply but recent data indicates a bounce back.
Reflecting the above, there is evidence of a move away from the traditional village hall concept to a more community-based ethos of charities combining to provide a broader service; a kind of ‘community hub’ with multi-purpose facilities that provide opportunities for local social activity, sports, arts and recreation, alongside providing access to services and civic participation.
2. Changes from the last Practice Note
More detailed guidance in respect of rental valuation added. Removal of the previous section regarding valuation using the Contractor’s Basis.
3. Ratepayer Discussions
No discussions have taken place with any representative body or their agents.
4. Valuation Scheme
4.1 Valuation on the Rentals method
Rental evidence is available and where identified full details should be sought. Utilising reliable rental evidence, the appropriate rate per m2 should be applied to the Net Internal Area of the property.
Rental evidence in these classes is often wide-ranging reflecting locality, size, age and quality. Valuation schemes should be formed upon the evidence available in the locality under consideration in every case.
Hereditaments within this category have been data captured into national sublocations:
- CVHB- BEST COMMUNITY CENTRES, VILLAGE HALLS, SCOUT/CADET HUTS
- 1CVH- VERY GOOD COMMUNITY CENTRES, VILLAGE HALLS, SCOUT/CADET HUTS
- 2CVH- GOOD COMMUNITY CENTRES, VILLAGE HALLS, SCOUT/CADET HUTS
- 3CVH- AVERAGE COMMUNITY CENTRES, VILLAGE HALLS, SCOUT/CADET HUTS
- 4CVH- POOR COMMUNITY CENTRES, VILLAGE HALLS, SCOUT/CADET HUTS
- 5CVH- INFERIOR/NON-STANDARD COMMUNITY CENTRES, VILLAGE HALLS, SCOUT/CADET HUTS
- CVHF- NON GND FLR COMMUNITY CENTRES, VILLAGE HALLS, SCOUT/CADET HUTS
These are defined in the Rating manual entry.
4.1.1 Valuation Access Path
The valuation access path for community centres, village halls and scout huts should utilise the valuation scale V1MCOMMNIA1, with the exception of CVHF sublocation which should utilise the valuation scale V1MCLUBOGF1.
The beacons in Appendix A provide guidance as to the appropriate scale to adopt and the levels of value for a range of beacons. Rental evidence is held by the Central Valuation Team.
1.Market Appraisal
This property class encompasses a number of property types including traditional village halls, purpose built community centres and smaller huts used by the scouts and army air and sea cadets. The organisations that typically occupy this class of property are largely dependent on grants and loans from local or central government or are required to self -fund through local initiatives.
The sector contains a number of charitable occupiers. In a recent report the Charity Commission noted that there are over 9000 village halls and community centres occupied by bodies recognised as charities in England and Wales representing more than 5% of the Charities Register and having a combined annual income of £0.25 billion.
Financial constraints in recent years have impacted on some community groups occupying property in this class. This is particularly prevalent in rural areas where demographic changes have left halls serving an increasingly elderly population.
The Charities Commission urges community hall operators to be more dynamic in their outlook and search to provide relevant activities to attract the local population. The need to deal with social problems in their areas has meant that some community halls have adapted and broadened their services to be seen as providing a community hub. The Charities Commission notes that where occupiers have shown a desire to develop their functions, they have been rewarded with greater financial resources.
A further issue in the provision of community buildings is the need to comply with recent new legislation to provide access for all. The provision of disabled facilities can be difficult and costly particularly in older buildings and there is a need to maintain higher rates of public liability insurance to cover accidents that may occur. In the light of these operational difficulties some Community halls have been closed or put to other uses.
The 1990s / early 2000s saw a steady decline in Scout Membership but a revamp of the organisation has seen an uptake in new members. In 2009 the Scout Association reported its biggest increase in membership since 1972 with 16,568 new adult and youth members joining. Following the fifth consecutive year of growth, the Scout Association reports that it is now the largest co-educational youth movement in the country. However funding for renovation of existing property stock and renewals has not kept pace with this growth in membership.
2.Changes From The Last Practice Note
There is little change from the last practice note, but see comments below regarding rental levels.
3.Ratepayer Discussions
No discussions have taken place with any representative body or their agents
4.Valuation Scheme
4.1 Valuation on the Rentals method
Where there is reliable rental evidence, the appropriate rate per m2 should be applied to the Net Internal Area of the property.
Available rental evidence suggests values for community centres range from £20 /m2 in rural locations to £100 /m2 in London. However valuation schemes should be formed upon the evidence available in the locality under consideration in every case.
4.2 Valuation using the Contractors Basis
The costs shown in this section 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.
The Gross Internal Area should be used for properties valued on the contractor’s basis.
A) Stage 1 - Estimated Replacement Cost
Building cost
It has been asumed that Village halls, Church Halls and Community Centres are of a different nature and quality to that of Scout, Guide and Cadet Huts. Regard should be had to the Cost Guide beacons and if in the particular instance this is not the case it may be appropriate to adopt the scout Hut or Comunity Centre beacon.
The GIA should be used to calculate the Estimated Replacement Cost (Stage 1) of the building by applying a substitute building cost as specified in the cost guide under the following references
| Cost Guide Code | Generic | Specific | Description | Size | ERC |
| 61FOOA | Community Centres | Medium--Beacon One | Basic Quality | 350m2-1000m2 | £1,500 |
| 61FOOF | Community Centres | Small Beacon One | Medium Quality | Less than or equal to 350 m2 | £1,701 |
| 61FOOK | Community Centres | Small Beacon Two | Medium Quality | Less than 350m2 | £1238 |
| 61FOOP | Community Centres | Medium--Beacon 2 | Basic Quality | 350m2-1000m2 | £1780 |
Scout and cadet huts etc. should be valued using the appropriate cost provided in the cost guide under Cost Guide reference 61F00V, £744 / m2
External works : Community Centres Village Halls, Church Halls
| Addition | Description |
| 2% | Town centre or island site typically with 90% or greater building ratio, no more than a small yard or garden area, and either no car parking, or a very limited number of spaces within the hereditament. |
| 2.5% | As above, but typically with an 80% to 90% building ratio, limited parking, external lighting and landscaping and some boundary fencing. |
| 5% | Site typically with 50%/75% building ratio, some landscaping around buildings, secure boundary fencing, adequate parking, external lighting and landscaping with limited general parking within the hereditament and boundary fencing. |
| 7.5% | As above, but typically with 25%/50% building ratio, landscaping around buildings, secure boundary fencing, external lighting, adequate parking within the hereditament which falls short of full requirements,. |
| 12.5% | 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. |
External works : Scout and Cadet Huts
| 3.5% | Town centre or island site typically with a 90% or greater building ratio, no more than a small yard or garden area, and either no car parking, or a very limited number of spaces within the hereditament. |
| 7.5% | As above, but typically with an 80% to 90% building ratio, limited parking, external lighting and landscaping and some boundary fencing. |
| 10% | Site typically with 50%/75% building ratio, some landscaping around buildings, secure boundary fencing, adequate parking, external lighting and landscaping with limited general parking within the hereditament and boundary fencing. |
| 12.5% | As above, but typically with 25%/50% building ratio, landscaping around buildings, secure boundary fencing, external lighting, adequate parking within the hereditament which falls short of full requirements,. |
| 17.5% | 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. |
Contract size adjustments should be made in accordance with standard scales in the 2017 Cost Guide.
Location Factors are to be applied in accordance with the figures given in the 2017 Cost Guide
An addition for Fees should be made in accordance with the guidance in the 2017 Cost Guide
B) Stage 2 – Age and Obsolescence
Adjustments for age and obsolescence should be made in accordance with the scales contained in Rating Manual - section 4 part 3: the contractor’s basis of valuation : R2017 practice note: Stage 2 - Age and Obsolescence Allowances, and should be applied in most circumstances.
C) Stage 3 – Land value
Land value should be arrived at by having regard to amenity land values in the area (see 2017 practice note relating to land values) , in accordance with Rating Manual section. 4: Section 7.
D) Stage 4 – Decapitalisation Rate
The Adjusted Replacement Cost (ARC) of the hereditament shall be de-capitalised to an annual equivalent by taking the prescribed (higher) rate.
E) Stage 5 – End Adjustments
Any advantage or disadvantage, which might affect the value of the occupation of the hereditament as a whole, should be reflected at this stage. An adjustment under this head should not duplicate adjustments made elsewhere.
4.3 . IT Support
4.3.1 Where the Contractors Basis is appropriate the other generic Contractors Valuation Spreadsheet held on the non- Bulk Server should be used for all valuations .
4.3.2 Where the rentals method of valuation is employed, records should be captured and valuations carried out by applying an appropriate scheme using the Rating Support Application (RSA)
1 Co-ordination Arrangements
For the purposes of the 2010 Reval the following arrangements apply:
| R2005 Scat code (and suffix) | Class | Co -ordination responsibility |
| 067(G) | Community Day Centres | Group |
| 293(G) | Village Halls/Scout/Guide/Cadet Huts etc | Group |
| 225(S) | Public Halls | SRU |
These arrangements are a continuation of those used for the 2005 and the 2000-rating list.
The dividing line between community/day centres, public halls, and concert halls is not always self-evident, however the Public Halls class should normally only include hereditaments used as Theatres/Concert Halls.
It is recommended that, where in local authority occupation, a community centre of superior specification adequate as a venue for professional entertainment, conferences or used as a theatre/concert hall and regularly (but not exclusively) so used, should be regarded as a public hall and either passed over to the responsibility of the SRU or, valued following co-ordination/consultation with the SRU.
Note that Cadet Huts also fall within this category, and they should accordingly be SCat coded under 293G, as opposed to 187 (MoD Hereditaments), 015 (Army Hereditaments), 197 (Navy Hereditaments) or 230 (RAF Hereditaments).
2. Cross reference
RM Section 6: Part 3: s1050 deals with Theatres and Concert Halls. Public halls used as theatres/concert halls may be valued in accordance with the relevant parts of that section and any associated Practice Note(s). The 2010 PN to RM Section 6: Part 3: s595 deals with public halls, which are part of Town Hall/Civic Centre hereditaments.
3. Measurement
The property will generally be valued on a rentals basis (see below) but groups have variously adopted different methods of measurement with about half NIA (Net Internal Area) and half GIA (Gross Internal Area). There will be no attempt to standardise this for R2010 and groups should continue to adopt their current bases, adopting NIA or GIA valuation scale as appropriate. Those properties that are exceptionally considered to best be valued by reference to the contractor’s basis should be measured to GIA (Gross Internal Area).
If it is unclear which basis of valuation (and thus of measurement) will be used, sufficient measurements to allow both areas to be calculated will be required.
4. Valuation
4.1:
In applying the guidance given within this section, VOs should note that organisations which are often in occupation of this class of hereditament have strictly limited budgets and little flexibility to meet hypothetical rental obligations. In such cases it is necessary to consider the “ability to pay” of the actual occupier. This involves examination of the receipts and expenditure associated with occupation of the hereditament. The general presumption is that most of these properties will be valued on a rentals basis, using RSA and the Standard Valuation Scales provided. However, as recommended in the main RM section for this class, RM Section 6: Part 3: s475, the contractor’s basis should be adopted where the rateable occupier is identified as a local authority (excepting parish councils).
4.2:
A limited amount of rental evidence has been derived centrally for these properties. This evidence would suggest a range of values for these properties of between £20/m2 and £50/m2, depending on age, construction and location of the property. It is to be expected that scout/guide/cadet huts will tend towards the lower end of this range. Properties that are more in the nature of “quasi-office” premises (as can sometimes be found in more urban settings, containing numbers of rooms together with larger meeting rooms, as opposed to hereditaments consisting of a main hall with ancillary space) may attract values of up to 50% more than these figures. This basis (being derived from actual lettings) is expected to incorporate effects of “ability to pay”, and further reductions for such should not be given as a matter of course, but only in exceptional and fully investigated cases. In the absence of any local evidence to suggest otherwise, it is recommended that these value ranges be used for R2010. Regard should also be had to the levels of value adopted for similar style properties in the same locale – for example, sports clubhouses and pavilions (see RM Section 6: Part 3: s970 and associated entries). There may also be a need to consider whether properties in this class actually operate as a “Member’s Club”, in which case reference should be had to the relevant Rating Manual entry (RM Section 6: Part 3: s260).
4.3:
Although “ability to pay” may fix the value, it may be necessary to consider a contractor’s basis valuation. It should be noted that in recent years a large number of new premises have been constructed with grant aid. Reference should be made to RM section 4 part 3 for the extent to which grant aid should be reflected in valuation.
Those properties that are valued using the Contractor’s basis should be valued using the Non-Bulk Server generic Spreadsheet. Contractor’s basis valuations may produce higher values (expressed in £/m2) for this class of property, and the “ability to pay” issue might therefore apply more heavily in such cases. Where the Contractor’s Basis is applied, reference should be made to the 2010 Cost Guide, where beacons for community centres are provided and guidance on fee levels and contract size allowance is available; for costs of external works reference should be made to RM v4 s7 PN 2 2010, and for land value RM v4 s7 PN 1 2010.
5. Exemptions
Church halls and similar buildings used in connection with a place of public religious worship are potentially exempt. See RM section 6 part 6 for full details.