Avoid the 'DIY' approach to rates valuations

Despite requests by the Valuation Office Agency, performing your own business rates evaluation is only likely to cost you time and money, argues Richard Farr

After releasing the draft 2010 Rating Revaluation in October 2009, the Valuation Office Agency (VOA) has written to business ratepayers at vast expense in the last few months, with a breakdown of their valuations. Here, the VOA suggests ratepayers check their valuation is accurate, encouraging them to perform ‘DIY’ valuations.

This extra information and cost analysis may initially be welcomed, but it is however, limited to the basic arithmetic of floor areas of buildings and values applied, with no proper explanation as to how the basic values have been produced.

Ratepayers are inevitably keen to check that these figures add up, resulting in some painstakingly attempting to check complex rating figures. As the totals are produced by computer, these figures are never wrong, which simply serves to waste ratepayers’ time.

In this correspondence, ratepayers are also encouraged to measure their own properties and report any discrepancies back to the VOA. What the letters don’t reveal is that the VOA hasn’t been given the resources to visit any properties itself for the last ten years to check any discrepancies. Ratepayers are therefore under no obligation to carry out this task.

In order to assist ratepayers through this process, the VOA has recently created a new, interactive website. This is the first time this information has been available to business owners online, so some may be unfamiliar with the new process.

Using advice pages and videos, the website can appear somewhat overwhelming to the average business property owner and the entire process of checking rates valuation is laborious and can take days to ensure it is done accurately. This amount of time is extremely precious to business owners, especially those battling their way out of recession.

The VOA says it is making as much information available to the ratepayer as possible, but bombarding busy property owners with this kind of information is a waste of everyone’s time.

Some are viewing this as a dumbing-down of the complex rating valuation process which, after completion of a specialist survey, relies on the careful adjustment and expert analysis of rental information, to develop a tone of values that is then applied to all commercial properties.

In truth, a proper rating appeal cannot be submitted until April 2010, when the values come into force. It is more likely that the average ratepayer may innocently draw attention to matters that could serve to support the VOA’s assessment or eventually increase their liability.

Ratepayers may therefore want to think twice before embarking on ‘DIY’ rating valuations, as it may result in being a costly and unnecessary practice. If building-owners are concerned that their rates revaluation is inaccurate, they should seek proper professional rating advice from a fully qualified rating surveyor.

To ensure property owners don’t get stung by an inaccurate ratings valuation:

Put your house in order. Businesses can’t start the formal appeal process against the new rateable values until after 1 April 2010. However, if your property has undergone physical changes such as the demolition of an area or a change in occupation which results in a clear error, upon proof of this the valuation office will revise the rateable value.

It’s never too late to appeal. Up until 21 March 2010, you can still appeal against the value set from the 2005 rating list. It’s important for businesses to ensure that their rates are as low as possible to come from a stronger position if an increase kicks in.

Get the right advice. Unfortunately, there are a number of unqualified rating advisers or ‘rates cowboys’. Always make sure you speak to a chartered surveyor who is dealing with your case rather than an intermediary and be
suspicious of anyone charging an up-front fee in exchange for sometimes worthless advice. Always check that advisers comply with the Rating Consultancy Code of Practice.