[2025] UKUT 163 (LC)

Mr Hawkins relied on a valuation based on the rent passing at the property, and the disabilities that he identified in the property were effectively baked into his end figure rather than being accounted for separately. Mr Steel made an allowance of 8.5%, a figure that had been agreed on the 2010 List and carried over.

Both parties therefore agree that the Property warrants an end allowance, it is just a question of quantum. It appears to us that the answer can most easily be derived from a comparison of the Property and Amazon in Swallowdale Lane. Mr Hawkins described Amazon as a ‘high grade example of a post 2000 built distribution warehouse’. It appears to us to have no disadvantageous features and was developed by Prologis, a well-known participant in this sector of the market. It is a suitable baseline from which to make judgements about the features of the Property. It is in the same location, is similar in size, and it was let eight months earlier. It is possible to make a direct comparison and the difference between the two represents the disadvantages inherent at the Property. By our calculation the difference between the analysed rents of £65.71 per m² for Amazon and £57.43 per m² for the Property is 12.6%. It is not necessary for us to apportion this figure between the various factors identified by the parties, and we use this as our end allowance.