Rating Manual section 5a: valuation of all property classes - Colleges of further education - Guidance

1. Scope

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

1.1 General

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

1.2 University Technical Colleges (UTCs):

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

2. List description and special category code

2.1 List Description: College and Premises

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

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

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

3. Responsible teams

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

4. Co ordination

NVU Civic Team has overall responsibility for the co-ordination of this class. The Education 2 Class Coordination Team (CCT) are responsible for the approach to and accuracy and consistency of valuations. The CCT will deliver Practice Notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating lists. Caseworkers have a responsibility to:

Follow the advice given at all times.
Not depart from the guidance given on appeals or maintenance work without approval from the co-ordination team.
Seek advice from the co-ordination team should any issues arise that are not covered in this instruction.

5. Legal framework

5.1 Replacement Costs

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

5.2 Site Value

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

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

6. Survey requirements

Colleges should be measured to Gross Internal Area (GIA) as defined in the VOA Code of Measuring Practice where the contractors basis is to be applied, and to Net Internal Area (NIA) where a rental comparison valuation method is to be used (see Basis of Valuation below).Therefore guidance on the measurements to be taken should be obtained from the valuation case owner before inspection.
Surveys should record the use of all space. Where areas are unused, enquiry should be made and noted as to their use in the future, or otherwise.

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

7. Survey capture

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

8. Valuation approach

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

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

Valuation considerations

8.1 Application of the Contractors Basis

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

8.2 Decapitalisation Rate

Hereditaments constructed as, or adapted for use as a College of Further Education or a Police Training College will generally fall within the definition of “educational hereditament” to which the lower statutory decapitalisation statutory rate applies. It should be noted though that qualification as an educational hereditament is subject to a “wholly, or mainly so used” test, and further tests as to the nature of the occupation. In selecting the appropriate rate reference should be made to The Non-Domestic Rating (Miscellaneous Provisions) (No. 2) Regulations 1989 (Amendment) (England) Regulations 2016 (legislation.gov.uk).

8.3 Exemptions

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

9. Valuation support

Rentals comparison valuations should be captured in RSA.

Contractors’ basis valuations should be entered onto the Non-Bulk Server.
Other support available:

Survaid
Class Co-ordination Team
National Valuation Unit

Practice note: 2023 - colleges of further education

1. Market Appraisal

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

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

2. Changes from the last Practice Note

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

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

3. Ratepayer Discussions

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

4. Valuation Method

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

4.1. Stage 1 Estimated Replacement Cost

(i) Building Costs

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

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

(ii) External Works

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

(iii) Location Factors

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

(iv) Contract Size Adjustment

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

(v) Professional Fees and Charges

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

4.2. Stage 2 Age and Obsolescence Allowances

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

4.3 Multi-Storey Allowances

Notes for Multi-Storey Allowance

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.

£80m2 ARC of the footprint of the flat roof for buildings constructed up to and including 2004
No allowance for flat roofs constructed from 2005 and onwards

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

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

4.5. Stage 3 Land Value

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

i) Developed Land

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

(ii) Undeveloped Land

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

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

4.6. Stage 4 Decapitalisation

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

4.7. Stage 5 End Allowances

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

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

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

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

Description	Cost Guide Reference	Cost (£/m2 unless stated otherwise)
Main Buildings (Category 1)	42AC01	£2,200
Sports Hall (Category 2)	42AC02	£1,279
Leisure Centre (Dry) - Superior (Category 2)	STF020	£1,860
Temporary & Portable Buildings (without WC) (Category 3)	42AC04	£728
Temporary & Portable Buildings (with WC) (Category 3)	42AC05	£833
Living accommodation - Caretakers (Category 4)	42AC06	£1,289
Living accommodation - Halls of Residence (Category 4)		£1,677
Training workshops (Category 5)	42AC07	£1,265 (less 25% uninsulated, +/- 2% for each 0.5m eaves variation from 5m standard)
Sports Facilities (as detailed below)
Indoor pool	STD020	£2,643
Squash courts	STS033	£1,403
Tennis Courts	Select from cost guide according to specification and number 53U21A - 53U70P
Athletics tracks 6 lane synthetic each	63P00A	£541,357 per item
Athletics tracks 8 lane synthetic each	63P00C	£736,236 per item
Athletics tracks 2 lane synthetic (with 4 lane home) each	63P00L	£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	£74,750 per pitch £70,004 per pitch £70,004 per pitch
All weather artificial turf pitches- Astroturf (sand filled not dressed)	STK020	£77
All weather artificial turf pitches- Water based hockey pitches	STL020	£125
All weather artificial turf pitches- 3G Multi Sports surface	STM020	£104
Tarmacadam playing surfaces (sports use not playgrounds)	33U025 33U030	£41 (in excess of 6,000m2) £50 (up to 6,000m2)
Crushed stone or ‘Redgra’ playing surfaces	33U010	£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 This applies to all separate ‘dry’ sports buildings comprising of sports halls and standard ancillaries such as WCs, changing rooms, ablutions, viewing gallery and fitness rooms.

Indoor swimming pools should be costed separately as shown.

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

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

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

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

Category (5) Training Workshops These are stand-alone industrial type buildings generally used for the training of building or mechanical related trades.

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

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

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

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

Category (6) Minor Buildings Small buildings such as meter houses, sheds and stores with individual Gross Internal Areas [GIA] of less than 26sq m should not be costed, as they are reflected within the addition for external works.

Appendix B External Works

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). 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 £	% 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 £750,000	14%
£750,000 to £1,499,000	13.5%
£1,500,000 to £3,999,999	11.5%
£4,000,000 to £7,499,999	10.5%
£7,500,000 to £14,999,999	9.5%
Over £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 – 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	£100,000
East Midlands	4.25	£75,000
East	17.50	£75,000
North East	5.00	£50,000
North West	8.50	£75,000
South West	10.50	£75,000
West Midlands	7.75	£75,000
Yorkshire and Humberside	8.00	£75,000
Central London North	50.00	£250,000
Central London South	30.00	£250,000
Greater London NW	21.50	£200,000
Greater London SW	30.00	£200,000
Greater London NE	21.00	£200,000
Greater London SE	19.00	£200,000
Cardiff	18.75	£40,000
Rest of South Wales	8.50	£35,000
Mid and North Wales	6.50	£40,000

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

1. Market Appraisal

1.1 Colleges of Further Education

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

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

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

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

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

2. Changes from the 2010 Practice Note

There are a number of changes to the approach to valuation most notably at stages 1 and 2. These are detailed below.

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

3. Ratepayer Discussions

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

4. Valuation Scheme

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

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

4.1 Contractor’s Basis

4.1.1 Stage 1 - Estimated Replacement Cost

(i) Building Costs

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

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

(ii) External Works

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

(iii) Location factors

Location factors should be applied in accordance with Appendix C.

(iv) Contract size Adjustment

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

(v) Professional Fees and Charges

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

4.1.2 Stage 2 Age and Obsolescence

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Multi-Storey Allowances

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

Flat Roof Allowance

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

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

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

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

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

4.1.3 Stage 3 The Addition for Land

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

(i) Developed Land

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

(ii) Undeveloped Land

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

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

4.1.4 Stage 4 Decapitalisation Rate

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

4.1.5 Stage 5 End Adjustment

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

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

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

Appendix A

Building Category Definitions

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

Description	Cost Guide Reference	Cost (£/m2 unless stated otherwise)
Main Buildings (Category 1)	42AC01	£1,766
Sports Hall – Standard (Category 2)	42AC02	£1,011
Leisure Centre (Dry) – Superior (Category 2)	STF020	£1470
Temporary & Portable Buildings (without WC) (Category 3)	42AC04	£619 (less 12.5% no heating)
Temporary & Portable Buildings (with WC) (Category 3)	42AC05	£709 (less 12.5% no heating)
Living accommodation -Caretakers (Category 4)	42AC06	£1,097
Living accommodation – Halls of residence (Category 4)		£1326
Training workshops (Category 5)	42AC07	£1,000 (less 25% uninsulated, +/- 2% for each 0.5m eaves variation from 5m standard)
Sports Facilities (as detailed below)
Indoor pool	STD020	£2,089
Squash courts	STS033	£1,268
Tennis Courts	Select from cost guide according to specification and number 53U21A - 53U70P
Athletics tracks 6 lane synthetic each	63P00A	£435,087 per item
Athletics tracks 8 lane synthetic each	63P00C	£592,321 per item
Athletics tracks 2 lane synthetic (with 4 lane home) each	63P00L	£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	£63,000 per pitch £59,000 per pitch £59,000 per pitch
All weather artificial turf pitches- Astroturf (sand filled not dressed)	STK020	£65
All weather artificial turf pitches- Water based hockey pitches	STL020	£106
All weather artificial turf pitches- 3G Multi Sports surface	STM020	£88
Tarmacadam playing surfaces (sports use not playgrounds)	33U030	£43
Crushed stone or ‘Redgra’ playing surfaces	33U010	£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 ‘dry’ sports buildings comprising of sports halls and standard ancillaries such as WCs, changing rooms, ablutions, viewing gallery and fitness rooms.

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

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