[2025] UKUT 163 (LC)

Fecha: 05-Jun-2025

Valuation of distribution warehouses for rating

Valuation of distribution warehouses for rating

18.

For the purposes of the 2017 rating list the VO have adopted a factorised approach to the analysis of rents and the subsequent valuation of distribution warehouses. This involves the adoption of a rate in terms of main space (‘ITMS’) which effectively expresses the value of each part of the building as a factor of the rate applied to the warehouse. As far as it is relevant for this appeal the following principal factors apply:

Accommodation type	Floor level	Factor
Warehouse	GF	100%
Offices	GF & FF	120%
Ancillary office	GF	110%
Ancillary office	Mezz	100%
Area under supported floor	GF	70%
Supported floor	Mezz	50%
Canopy	GF	25%
Gatehouse	GF	100%
Car and lorry parking		Reflected in the main rate

None of these factors is disputed by the appellant. In Hemel Hempstead a main space rate of £67.50 or £68.00 per m² has been adopted for distribution warehouses with 12 metre eaves. The table below shows the division of floorspace in the building, together with the factorised areas and the adjustments for air conditioning (+5%), fire protection (+2.5%) and lack of heating (-2.5%).

Floor	Description	Actual Area (m2)	Area ITMS (m2)	Air Con +5%	Fire protection + 2.5%	Lack of heating	Adopted Area ITMS
Ground Floor	Warehouse	5544.85	5544.85		1.025		5683.47
Ground Floor	Area Under Mezz Floor	5310.02	3717.01		1.025		3809.93
Ground Floor	Office/WC’s/Lockers	267.86	294.65		1.025		302.02
Ground Floor	Office	461.28	553.54	1.05	1.025		595.75
Ground Floor	Office	62.83	69.11	1.05	1.025		74.38
Ground Floor	Gatehouse	21.38	21.38				21.38
Ground Floor	Pump House	48.33	36.25				36.25
Ground Floor	Canopy	746.90	186.72		1.025	0.975	186.60
First Floor (under Mezz)	Office	62.83	69.11	1.05	1.025		74.38
Mezzanine Floor	Store/Packing Area	5263.55	2631.77		1.025		2697.56
First Floor	Offices	461.28	553.54	1.05	1.025		595.75
Mezzanine Floor	Office/Server Room	73.86	73.86	1.05	1.025		79.49
Mezzanine Floor	Office	24.08	24.08	1.05	1.025		25.92
TOTALS		18,349.05	13,775.87				14,182.88