[2023] UKUT 214 (LC)

Mr Moore assumed that all purchasers in the market at the valuation date would have had full knowledge of the ongoing development of Stour View, so he said that sales of similar houses in roads adjacent to the property would provide evidence suitable for assessment of the hypothetical switched off value. The range of sales provided a general tone for the value of four bedroom detached houses in the locality, but Mr Moore placed most weight on the sales of two properties in the same residential estate as the property. 10 Hardy Close sold in June 2021 for £365,000 and 12 Browning Road in March 2021 for £410,000. Using the Nationwide House Price Index he adjusted the sale prices to the valuation date at £372,000 and £439,000 respectively. 10 Hardy Close had other houses to the front and rear, and a smaller footprint than the property so would be less valuable. 12 Browning Road had a front aspect looking out over green space within the estate and had been extended at ground floor level, both factors accounting for its higher sale price. The location was better than that of the property.

Mr Moore had also obtained, from the Land Director for Taylor Wimpey Homes, the prices agreed (at the reservation stage) for sales in Stour View of similar four bedroom detached houses with a small garage and garden. Only two sales had been agreed in 2021. The sale of No. 243 was agreed in May 2021 at £390,000. Using indexation that would be the equivalent of £398,000 at the valuation date. No. 50 had been agreed at £420,000 in November 2021, the equivalent of £408,000 at the valuation date.

Taking into account the evidence of actual sales and agreements for sale, it was Mr Moore’s opinion that the switched off value of the property at the valuation date was £400,000.

This can be compared with the claimant’s view, based on Mr Cathro’s letter, that the value of his house without the scheme at that date would have been £410,000. However, in his letter Mr Cathro referred to this price as one he would expect to achieve in a scenario where “…the property still backed onto open land…”. The switched off value can only assume that the physical factors arising from use are not present, and Mr Cathro’s assumption goes well beyond that. His figure is not a valuation supported by evidence of other sales, but it may well reflect the hypothetical value of the property in a world where the Stour View development was not taking place. In that respect it aligns with Mr Moore’s figure, which I would expect to be a lower one given the much more limited assumption.

I have reviewed the full range of 16 comparable sales provided by the claimant, and seen each in its location to judge how that factor could have affected its sale price. With evidence of 12 sales of similar sized houses in Brantham, there is no need to consider the sales in other villages. I agree with Mr Moore that the most weight should be given to the sales of houses within the same residential estate as the property, since that reduces the number of factors for which adjustments need to be made. For example, I note that several of the other Brantham sales are located beside a busy main road, which is a very different location, and some are close to a railway line and pub. However, a number of those houses have the benefit of an extensive rural view to the rear. In both respects they have important differences from the property which will have affected their sale price and make them less helpful as evidence.

I place very little weight on the prices said to have been agreed for new properties in Stour View since, as Mr Moore confirmed, the agreement of a price at reservation was not a binding contract. But those prices do give a feel for the market at the valuation date.

I consider that the best evidence is found in the sales of 10 and 26 Hardy Close and 12 Browning Road. Those sales are summarised below:

The adjusted sale price of 12 Browning Road sits so far above the evidence from Hardy Close that it suggests possibly special circumstances and certainly a different market for property situated on a quiet road overlooking a central green by comparison with properties in a cul de sac. Browning Road is also a more recent development than Hardy Close, with layout and design features reducing the appearance of uniformity and density which Hardy Close has. Grimwade Close is similar to Browning Road in age and design, but similar to Hardy Close in being a cul de sac, so I would expect the switched off value of the property to sit between the two price points and I agree with Mr Moore’s assessment of that value at £400,000.