Reality Prevails in the Rating Valuation World

The Court of Appeal has refused permission to the Valuation Office Agency to appeal a ruling in favour of Exeter City Museum over the rateable value of the city’s Grade II listed Royal Albert Memorial & Art Museum.

Cooke & Arkwright director Jane Shankland's article of 16^th January reported the Upper Tribunal (Lands Chamber) decision in the case of Stephen G Hughes (Valuation Officer) and Exeter City Council.  The Upper Tribunal had upheld the Valuation Tribunal England’s (VTE) decision that the rateable value of Exeter museum should be £1 with effect from 1^st April 2015.

Rating practitioners welcomed the decision which brought a sense of reality to the valuation of grand, listed civic buildings. Finding that these types of properties should be valued adopting the receipts and expenditure basis rather than the contractor’s method, which is based on rebuilding costs and produces valuations which are manifestly too high. The R&E method reflects the fact that these types of properties are largely non- profit making and rely on significant deficit funding.

Jane commented “The refusal by the Court of Appeal to allow the Valuation Office Agency a further appeal is great news for our local authority clients.  We now have a green light to progress the many outstanding museum rating appeals we have lodged.   The decision also has potential application for other public buildings which we are keen to explore”.