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The 2010 Rating List - Dunlop Heywood

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The document summarizes Stuart Hicks' credentials as a leading rating advisor and specialist in commercial property rates. It discusses the challenges faced by the Valuation Office Agency in establishing accurate property values for the 2010 Rating List given the economic turmoil as of the 2008 valuation date. It provides statistics on the impacts of the recession and argues that available evidence suggests property values were falling before April 2008. The document outlines opportunities to challenge valuations and reduce occupancy costs through rates appeals and negotiations with the VOA. Specific examples of successful appeals are highlighted for various large companies.

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Roots : Shoots : Opportunity? The 2010 Rating List www.dunlopheywood.com July 2010
Who am I ? Stuart Hicks BSc (Hons) MRICS IRRV (Hons) Director, Dunlop Heywood stuart.hicks@dunlopheywood.com 0161 602 3374 Member 1992 : Royal Institution of Chartered Surveyors Member: Institute of Revenues Rating & Valuation Member : Rating Surveyors Association Member : Chartered Management Institute Former Chairman : British Retail Consortium Rating Panel (NW) Recognised as a leading rating advisor across the UK in respect of various categories of specialist property and empty rates liability. Specialist in creating strategic solutions for commercial property in a business rates context
The turmoil of recent times presents the Valuation Office Agency with real challenges in establishing the correct level of value for commercial properties entered in the 2010 Rating List . The valuation date employed is 1 April 2008. It is easy to forget the panic that surrounded the banks and the general economy at that time – what is the correct level of value?
2010 Rating List – Valuation Date 1 April 2008 Is the ball going up or down? Like the photo, the valuation date is a snap shot. For those undertaking valuations preparing the 2010 Rating List the work was very difficult to undertake. Only now with the benefit of hindsight are we able to understand what the likely pressures on commercial property values were at 1 April 2008.
Some statistics since the UK recession began Source : The Times 29 August 2009 and Estates Gazette 5 September 2009 • 34,718 businesses have gone bust • 807,000 extra people are now unemployed • 176,090 people have declared themselves insolvent • 55,600 homes have been repossessed • £19,684 fall in value, average home and • 78% drop in aggregate worth of AIM property sector shares (March 2009)
The Valuation Date: Market evidence v Valuation Office Agency view… VOA Valuation Date – 1 April 2008 The Valuation Office Agency believes that the tipping point of the recession was after 1 April 2008 – the valuation date. But available evidence suggests that values were falling well before this date. This is not generally reflected in the 2010 Rating List.
Know your market Empty Property Rates Strategy Understand the operational business Challenge convention Manage the appeal Things process effectively Assess the opportunity To Consider Act decisively Negotiate firm but fair Target the right individual within the VOA RISKS Think creatively
¸é±ð²õ³Ü±ô³Ù²õ… Genting Casinos UK Allowances secured across the UK as a result of the smoking ban. Peel Ports Clarence Dock, Leeds Secured significant 8 figure savings over Acting for Lend Lease Retail – 40% two rating lists. reductions for vacancy Sellafield Ltd New valuation methodology being advanced in respect of single assessment of RV £67,500,000. Roadchef Motorways Secured significant 6 figure refunds in 8 weeks
Cost Saving Opportunities There are real opportunities to reduce occupational costs for commercial property occupiers and owners through taking carefully considered advice from professional consultants.
‘Complex problems often have quick, easy to understand, wrong answers’ stuart.hicks@dunlopheywood.com Tel: 0161 602 3374 Don’t get it wrong; rateable values can go up as well as down!

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The 2010 Rating List - Dunlop Heywood

  • 1. Roots : Shoots : Opportunity? The 2010 Rating List www.dunlopheywood.com July 2010
  • 2. Who am I ? Stuart Hicks BSc (Hons) MRICS IRRV (Hons) Director, Dunlop Heywood stuart.hicks@dunlopheywood.com 0161 602 3374 Member 1992 : Royal Institution of Chartered Surveyors Member: Institute of Revenues Rating & Valuation Member : Rating Surveyors Association Member : Chartered Management Institute Former Chairman : British Retail Consortium Rating Panel (NW) Recognised as a leading rating advisor across the UK in respect of various categories of specialist property and empty rates liability. Specialist in creating strategic solutions for commercial property in a business rates context
  • 3. The turmoil of recent times presents the Valuation Office Agency with real challenges in establishing the correct level of value for commercial properties entered in the 2010 Rating List . The valuation date employed is 1 April 2008. It is easy to forget the panic that surrounded the banks and the general economy at that time – what is the correct level of value?
  • 4. 2010 Rating List – Valuation Date 1 April 2008 Is the ball going up or down? Like the photo, the valuation date is a snap shot. For those undertaking valuations preparing the 2010 Rating List the work was very difficult to undertake. Only now with the benefit of hindsight are we able to understand what the likely pressures on commercial property values were at 1 April 2008.
  • 5. Some statistics since the UK recession began Source : The Times 29 August 2009 and Estates Gazette 5 September 2009 • 34,718 businesses have gone bust • 807,000 extra people are now unemployed • 176,090 people have declared themselves insolvent • 55,600 homes have been repossessed • £19,684 fall in value, average home and • 78% drop in aggregate worth of AIM property sector shares (March 2009)
  • 6. The Valuation Date: Market evidence v Valuation Office Agency view… VOA Valuation Date – 1 April 2008 The Valuation Office Agency believes that the tipping point of the recession was after 1 April 2008 – the valuation date. But available evidence suggests that values were falling well before this date. This is not generally reflected in the 2010 Rating List.
  • 7. Know your market Empty Property Rates Strategy Understand the operational business Challenge convention Manage the appeal Things process effectively Assess the opportunity To Consider Act decisively Negotiate firm but fair Target the right individual within the VOA RISKS Think creatively
  • 8. ¸é±ð²õ³Ü±ô³Ù²õ… Genting Casinos UK Allowances secured across the UK as a result of the smoking ban. Peel Ports Clarence Dock, Leeds Secured significant 8 figure savings over Acting for Lend Lease Retail – 40% two rating lists. reductions for vacancy Sellafield Ltd New valuation methodology being advanced in respect of single assessment of RV £67,500,000. Roadchef Motorways Secured significant 6 figure refunds in 8 weeks
  • 9. Cost Saving Opportunities There are real opportunities to reduce occupational costs for commercial property occupiers and owners through taking carefully considered advice from professional consultants.
  • 10. ‘Complex problems often have quick, easy to understand, wrong answers’ stuart.hicks@dunlopheywood.com Tel: 0161 602 3374 Don’t get it wrong; rateable values can go up as well as down!