Practice Notes
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Approved for Publication 16/04/2004
COMMERCIAL PROPERTIES COMMITTEE
Practice Note 4
REVALUATION 2005
Valuation of Outdoor Markets/Car Boot Sales
1.0 INTRODUCTION
This Practice Note is designed to give guidance on when it might be appropriate to make an entry in the Valuation Roll for this category of subject.
2.0 BASIS OF VALUATION
These subjects are valued on the comparative basis therefore the best guide to the valuation is the actual rent passing or the rents of similar subjects in the same locality. Rents should be adjusted in line with the recommendations of Basic Principles Committee Practice Note 1 - Adjustment of Rents. The unit of comparison can be either the number of pitches or site area. It is important that where comparisons are drawn, they are drawn on the same basis.
3.0 TYPE OF SUBJECT
Open air markets, farmers' markets and car boot sales are commonly found in local authority car parks or car parks of other heritable subjects such as race courses and auction marts. Invariably they are the subject of a lease allowing the tenant to operate the market on a regular basis.
These subjects vary from large regular markets run on a commercial basis to small occasional affairs run by charities and community groups. As a guideline, where the market is regular and especially where it is the subject of a written lease, an entry in the Roll is appropriate.
4.0 THE SUBJECT
The land used for the market or car boot sale may vary in actual extent between successive sales, being dependent on the number of traders turning up on any particular day. For comparison or valuation purposes, the area let is the subject to be valued. Details of the subject may be contained within the lease or within the planning permission which is normally required for regular sales. It should be noted that it is the site which enters the roll and not the individual pitches.
5.0 THE OCCUPIER
Where there is a formal lease there will be no difficulty identifying the occupier. Where there is an informal agreement, the occupier will be taken to be the organiser of the market or car boot sale. In circumstances where there is doubt over who is in rateable occupation, the issue may be resolved by determining who is in control of the site for the purpose of the market or car boot sale.
6.0 CONSIDERATION OF DOUBLE COUNTING
If the site of the market or car boot sale is also used for other purposes which already forms all or part of an entry in the Roll, e.g. the car park at a racecourse and the occupier is the same, a separate entry for the market or car boot sale is not appropriate. However, it may be appropriate to enhance the value of the principal entry to reflect the additional use.
In some cases however, the market or car boot sale has a separate occupier. Markets and car boot sales usually take place when there is otherwise low demand for the space being used and the value of the principal subject is otherwise exhausted. In such cases, the existence of the market or car boot sale will not have been reflected in the principal entry and a separate entry based on paragraph 5 will be appropriate.
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