Acting on behalf of a number of Universities, Colleges and Schools, Sanderson Weatherall have been advising on opportunities to minimise the business rates for clients in the education sector for the last 30 years. Below we set out the current position regarding the valuation of these classes of property and how we can help organisations in this sector.
How are educational properties valued?
The majority of educational properties are valued by reference to the cost of rebuilding the premises, with adjustments relating to age, the number of stories and any accommodation that may be classed as part domestic. Analysis of construction costs at the relevant valuation date and a working understanding of the buildings and how they are occupied is essential in order to maximise opportunities to generate a reduction in the rates payable.
The valuation approach for Universities was agreed with the Valuation Office Agency in late 2019 and this saw enhanced age related adjustments, as well as revised allowances for multi-storey buildings, changes to developed land additions and certain revised costings. Through the application of this and representations relating to the impact of building works occurring to a number of campuses, we were able to deliver savings of hundreds of thousands to each of our clients, while also advising on budgeting requirements in respect of future developments.
How can we help reduce business rates?
From these agreements, there have been recent changes to the approach for schools and we have now sought revisions in rateable value for over 30 Public and Independent Schools where we have identified opportunities to amend floor areas, change building classifications, reduce land areas and reduce the underlying build costs adopted.
Lastly, in respect of Colleges of Further Education, we are actively involved in current representations with the VOA in respect of the national basis of valuation and anticipate concluding discussions in relation to a revised scheme by the end of June 2022, with key changes to rebuild costs for certain categories of building.
With less than a year left to lodge Checks on the VOA in order to seek a reduction going back to 1 April 2017, it is essential that all within the education sector seek professional advice and undertake a review of the valuations presently adopted. A number of opportunities and angles exist to reduce the rates payable and obtain a refund for historic overpayments made, but the window of opportunity will close come 31 March 2023 – when the 2017 Rating List comes to an end.
For any queries, please contact our education sector head, Rob Cohen 0752 350 5841 | rob.cohen@sw.co.uk