Purpose Built GP Surgeries

I have been alerted to a communication from the VOA to billing authorities regarding the valuation of purpose built GP surgeries.

I have copied the text of the e-mail below:

"GP Surgeries

We are planning to review the valuations for purpose built GP surgeries, and over the next few months reductions will be given to these types of surgeries.

Most RVs are expected to reduce by around a third, depending on the age of the property.

Purpose built GP Surgeries are valued on a cost basis, rather than a direct reference to rental evidence. Substantial amount of new build cost evidence was produced and we reviewed the level of costs adopted. In addition, recent Upper Tribunal (Lands Chamber) litigation (York Museums) has necessitated a review of age and obsolescence allowances to be applied and this has contributed to the overall reductions. The new evidence means the rateable value of purpose built GP surgeries will be reduced.

In England, the changes to RV will be implemented by way of Valuation Office Reports. However, in Wales we will also settle any outstanding 2017 Interested Persons Proposals (IPPs) on purpose built GP Surgeries.

You should start seeing these reductions begin to appear on the update schedules over the next few months."

The reason I thought this warranted an urgent communication is that I am aware that we are in the midst of closing 2019-20 accounts and you may want to consider whether the content of the e-mail should be reflected in the level of provision for alteration of lists and appeals you close your 2019-20 accounts with.

My initial thought was this resembles the changes that came through on the 2010 list following the test cases in Sheffield and, if you can identify those, it may be that this is a good way of identifying properties that may be affected by this announcement.

I have spoken to the VOA and they are going to see whether there is any further information they can share with you on the properties affected. If this is possible it will of course be subject to you having signed the latest information sharing agreement and protocol.

We should know more on what else, if anything they can share next week and I have a meeting with them on Wednesday so will update you all as soon as I know more.

They have asked that if you need more help/details you please contact the LARM team

Adrian