NON-DOMESTIC REVALUATION 2015 VALUATION SCHEME KENNELS AND CATTERY - NDR 2015 Kennels and Cattery
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NON-DOMESTIC REVALUATION 2015
VALUATION SCHEME
KENNELS AND CATTERY
NDR 2015 Kennels and Cattery1.0 SCOPE
The scope of this scheme is solely to ensure a consistent valuation approach
for this property Class/Sub Class/Type for Non-Domestic Revaluation 2015
and subsequent entry in the new Valuation List which becomes effective on
1st April 2015.
The basis of valuation for new entries in the Valuation List, and Rating
Revision cases after 1st April 2015, is Schedule 12 (2)(1) of the Rates (NI)
Order 1977.
2.0 DESCRIPTION
2.1 This scheme refers to property classified as:
Class: 299 Commercial Unclassified
Sub Class: Kennels/Cattery
Type: Not Applicable
Rescue/Welfare Centre
2.2 Animal boarding, kennels and catteries are usually operated commercially or
as a charity. Kennels and catteries offer many, or all, of the features on the
following list of accommodation and services:
Housing in purpose built kennels.
Exercise runs – open, closed or mesh construction on concrete or
grass.
Isolation facilities available if needed.
Veterinary support.
Storage of food and supplies.
Parking.
Office or offices.
Grooming services.
2.3 For comparative purposes, three main types of establishment have been
identified.
Category A – The best establishment with brick/block kennels; good
ancillary accommodation, relatively close to centres of population.
Category B – Standard or normal establishment with block built or timber
buildings.
NDR 2015 Kennels and CatteryCategory C – The remainder and will include establishments with poorer
quality buildings and those in remote locations.
Accommodation may include offices, WCs and other ancillary areas
The quality of a boarding facility can be gauged by the presence or absence
of the following features: larger kennel spaces (2 metre wide kennels)
allowing ample room for stretching, good natural light, attached runs to
kennels, relatively fewer kennels allowing for a quieter/calmer environment
and heating.
3.0 LEGISLATIVE BACKGROUND
3.1 Schedule 12 Part 1 Paragraph 1 of the Rates (NI) Order 1977 applies.
“Subject to the provisions of this Order, the Net Annual Value of a
hereditament shall be the rent for which, one year with another, the
hereditament can, 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”.
3.2 The Welfare of Animals Act (Northern Ireland) 1972 and the Animal Boarding
Establishment Regulations (Northern Ireland) 1974 (SR No. 303) apply.
Property where the boarding of animals is carried on as a business requires
a licence from the Department of Agricultural and Rural Development in
Northern Ireland (DARD). The licence is renewed annually.
Boarding properties which are not conducted for business or exhibition
purposes do not require a licence.
Rescue Centres and sanctuaries operated by charitable groups will be
unlicensed as they do not fall within the existing legislative requirements.
3.3 Article 41 of the Rates (NI) Order 1977.
Certain animal boarding establishments or animal rescue centres may
qualify for exemption. If the premises are occupied by a charitable body and
used wholly or mainly for the purposes of the charity the hereditament may
be considered for exemption.
3.4 Planning permission is required for new buildings and for change of use of
an existing farm building.
4.0 BASIS OF VALUATION
4.1 For this class of property the basis of valuation in the previous Valuation List,
which expired on 31st March 2015, was the Comparative method.
NDR 2015 Kennels and Cattery4.2 The basis of valuation for the Valuation List coming in to force on 1st April
2015 is the Contractor’s method.
4.3 The Contractor’s method of valuation is used to value property for rating
purposes by reference to a rental value derived from the capital cost of
construction. It is employed in the case of property which is not normally
available to let, where rental evidence does not exist, and where a valuation
by reference to accounts would not be appropriate. The method is a five
stage process as detailed below:
Source: The Contractor’s Basis of Valuation for Rating Purposes, Guidance
Note, produced by Joint Professional Institutions' Rating Valuation Forum
which consists of the RICS, the IRRV, the RSA, the SAA, the VLA and the
VOA. 1995.
Stage 1: Estimated Replacement Cost (ERC)
Estimate the construction cost of the actual hereditament, ie the replacement
cost of the site works, buildings, rateable structures, and rateable plant and
machinery, on an undeveloped site, in its actual location, at the AVD.
In order to achieve consistency, a unit cost approach using Cost Guides is
the primary method adopted. This approach will include the prevailing costs
in the identified location, the effect of any contract size, and any associated
professional fees. VAT is excluded, as are any grants or donations.
Stage 2: Adjusted Replacement Cost (ARC)
Adjust the ERC to take account of the differences between the new building
costed at Stage 1, and the actual building in its actual state; generally
termed obsolescence.
Physical obsolescence – deterioration due to wear and tear. Scales adopted
are based initially on age. It is important to note that age in itself does not
warrant an allowance, it is the physical obsolescence of the building that is to
be considered.
Functional obsolescence – design deficiencies relative to current
requirements.
Technical obsolescence – technological changes rendering plant or buildings
redundant, or economically outmoded.
Economic obsolescence is dealt with at Stage 5.
NDR 2015 Kennels and CatteryStage 3: Land Value
Value the land in two stages:
1. Find the cost of the undeveloped site, based on the open market
Capital Value of the land at the AVD, assuming the site is undeveloped,
that services are in place and that planning permission exists for the
relevant use.
Comparisons should be with similar sites, in the same mode or
category of use, reflecting all inherent advantages and disadvantages,
with no allowances made for development potential over and above
that required for the building. As building costs do not vary greatly, and
the decap rate is a statutory figure, it is this element of the valuation
which gives similar hereditaments in different locations their different
values.
The primary difficulty in Stage 3 is in finding actual sales of land in the
relevant location, which are truly comparable in terms of size and use
class, at the tone date. Where no market evidence is available the
Valuer is not precluded from considering values relating to land use for
other purposes in the vicinity. Such an approach can only be used
where it is considered relevant by the hypothetical negotiating parties.
In Dawkins (VO) .v. Royal Leamington Spa BC 1961 the LT accepted
that the land must be valued for its use as a school, (rebus), but in the
absence of market evidence the prevailing use value of land in the
locality could be adopted, in that case it was just below residential land
values.
It may be appropriate in some cases to consider an alternative site,
especially in an area of high value where the occupier of the property
derives no extra benefit there from, and could feasibly be situated as
advantageously in a lower land value area. For instance there is no
real need for a school to have a valuable frontage, so the prevailing
land use value behind a valuable frontage should be considered.
2. Consider any adjustment to that value. The Ebdon Allowance (Imperial
College of Science and Technology .v. Ebdon (VO) and Westminster
City Council 1984) reflects the fact that the site is encumbered by the
buildings, structures and plant. It allows for an age and obsolescence
factor to be applied to the land value to reflect this. The quantum is a
matter of Valuer judgement, but it is usually appropriate for the value of
the site to be discounted by the same amount as the allowance made
for deficiencies in the buildings at Stage 2.
Surplus land is distinguished as that which is not needed to allow
proper enjoyment of the hereditament, it is valued at a lower level and
does not attract an Ebdon Allowance.
The sum of Stages 2 and 3 is the Effective Capital Value.
NDR 2015 Kennels and CatteryStage 4: Decapitalisation
Decapitalise the sum of Stages 2 and 3 by the appropriate decapitalisation
rate. This converts the Effective Capital Value to an annual equivalent.
The Decapitalisation rates are,
Lower rate: 2.67% - in the case of a healthcare, educational or church
hereditament.
Standard rate: 4% - in any other case.
Stage 5: Stand back and look
This stage involves standing back and looking at the property and the
valuation, and making any further adjustments which affect the property as a
whole, e.g. poor access, cramped site conditions, inadequate layout, if the
property is a “new venture”, economic state of that industry, obsolescence of
specialised buildings or plant, negotiations between parties. It is important
that adjustments made at earlier stages are not duplicated. The value
arrived at in Stage 5 is rounded to produce the NAV.
For full details see the following documents which are also available on
this website:
LPS Guidance Note: The Contractor’s Method of Valuation;
LPS Code of Measuring Practice;
LPS Cost Guide;
LPS Subject to Scheme Cost Guide;
The Contractor’s Basis of Valuation for Rating Purposes Guidance Note by
the Joint Professional Institutions Rating Valuation Forum;
Appendix 1: The land values matrix;
Appendix 2: Extract from LPS Subject to Scheme Cost Guide. This is not a
complete list of all rateable items which may be at the property.
5.0 FORMS OF RETURN
5.1 A standard Form of Return was issued for this class of property.
5.2 All Forms of Return used for NDR 2015 are available on the LPS website.
6.0 CONTACTS
6.1 For advice on any aspect of this scheme contact LPS on 0300 200 7801.
NDR 2015 Kennels and CatteryAppendix 1:
NDR 2015 Land Value Matrix for Contractor’s basis of Valuation
Type Description £ / Acre £ / Hectare
Land restricted in use by either
planning or title issues, for
Amenity Land £15,000 £37,000
example sports facilities or
community centres etc.
Remote villages or hamlets
Land Value Band 1 within the former Council
Districts of Omagh, Cookstown, £30,000 £75,000
Dungannon, Fermanagh and
Strabane.
Small size villages or hamlets,
Land Value Band 2 but can include larger villages or
£60,000 £150,000
small towns with lower than
average values.
Average size villages or small
Land Value Band 3 towns, but can include larger
£100,000 £250,000
towns or suburbs with lower than
average values.
Land Value Band 4 Average size towns, but can
include larger towns with lower £150,000 £370,000
than average values.
Town or city with higher than
Land Value Band 5 average values, or Belfast
outside of Band 6. £225,000 £550,000
Belfast central business district
Land Value Band 6 £300,000 £750,000
and South Belfast wedge.
The land value matrix does not apply to Sport and Recreation facilities. See individual LPS
valuation schemes for details on land values applied.
NDR 2015 Kennels and CatteryAppendix 2:
Extract from LPS Subject to Scheme Cost Guide
Kennels and Catteries
Purpose built kennels:
Corridor kennels: These consist of a central covered service corridor from which the
sleeping areas of the kennels can be accessed and an outside (often uncovered) area from
which the runs can be accessed.
Construction: Modern ‘Cosy Kennel’ modular type structure.
Floors; Concrete construction. Kennels and runs finished in smooth impervious materials,
capable of being easily cleaned. Minimum fall 1in 80. Drainage channels to be provided and
connected to main (foul) drain
Walls: Modern UPVC insulated walls with insulated internal UPVC infill panels
Roof: Modern profiled steel with PVC coating and acoustic and thermal insulation
Exterior: Heavy duty galvanised steel exercise areas
Services; Mains drainage, electric, heating and ventilation to interior areas.
£/m2
Corridor kennels £380
Based on a unit containing 20 dogs and reflecting appropriate
exercise areas and perimeter fencing
Catteries -
Dog runs (included in overall
cost of £380 above)
Converted buildings:
Basic agricultural type building. Steel frame, reinforced concrete floor, 6m eaves height,
profiled sheet cladding. Electric and water but no heating.
Up to 500m2 £200/m2
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