The document summarizes Stuart Hicks' credentials as a leading rating advisor and specialist in commercial property rates. It discusses the challenges faced by the Valuation Office Agency in establishing accurate property values for the 2010 Rating List given the economic turmoil as of the 2008 valuation date. It provides statistics on the impacts of the recession and argues that available evidence suggests property values were falling before April 2008. The document outlines opportunities to challenge valuations and reduce occupancy costs through rates appeals and negotiations with the VOA. Specific examples of successful appeals are highlighted for various large companies.

1. Roots : Shoots : Opportunity?
The 2010 Rating List
www.dunlopheywood.com July 2010

2. Who am I ?
Stuart Hicks BSc (Hons) MRICS IRRV (Hons)
Director, Dunlop Heywood
stuart.hicks@dunlopheywood.com
0161 602 3374
Member 1992 : Royal Institution of Chartered Surveyors
Member: Institute of Revenues Rating & Valuation
Member : Rating Surveyors Association
Member : Chartered Management Institute
Former Chairman : British Retail Consortium Rating Panel (NW)
Recognised as a leading rating advisor across the UK in respect of various categories of
specialist property and empty rates liability.
Specialist in creating strategic solutions for commercial property
in a business rates context

3. The turmoil of recent times presents the Valuation Office Agency with real challenges in
establishing the correct level of value for commercial properties entered in the 2010 Rating List .
The valuation date employed is 1 April 2008. It is easy to forget the panic that surrounded the
banks and the general economy at that time – what is the correct level of value?

4. 2010 Rating List – Valuation Date 1 April 2008
Is the ball going up or down?
Like the photo, the valuation date is a snap shot. For those undertaking valuations preparing
the 2010 Rating List the work was very difficult to undertake. Only now with the benefit of
hindsight are we able to understand what the likely pressures on commercial property
values were at 1 April 2008.

5. Some statistics since the UK recession began
Source : The Times 29 August 2009 and Estates Gazette 5 September 2009
• 34,718 businesses have gone bust
• 807,000 extra people are now unemployed
• 176,090 people have declared themselves insolvent
• 55,600 homes have been repossessed
• £19,684 fall in value, average home
and
• 78% drop in aggregate worth of AIM property sector shares (March 2009)

6. The Valuation Date: Market evidence v Valuation Office Agency view…
VOA
Valuation Date – 1 April 2008
The Valuation Office Agency believes that the tipping point of the recession was after 1 April
2008 – the valuation date. But available evidence suggests that values were falling well
before this date. This is not generally reflected in the 2010 Rating List.

7. Know your market Empty Property Rates Strategy Understand the
operational business
Challenge
convention
Manage the appeal
Things process effectively
Assess the
opportunity To
Consider Act decisively
Negotiate firm
but fair Target the right individual
within the VOA
RISKS
Think creatively

8. Results…
Genting Casinos UK
Allowances secured across the UK as a result
of the smoking ban.
Peel Ports
Clarence Dock, Leeds Secured significant 8 figure savings over
Acting for Lend Lease Retail – 40% two rating lists.
reductions for vacancy
Sellafield Ltd
New valuation methodology being advanced in respect
of single assessment of RV £67,500,000.
Roadchef Motorways
Secured significant 6 figure refunds in 8 weeks

9. Cost Saving
Opportunities
There are real opportunities to reduce occupational costs for commercial property occupiers
and owners through taking carefully considered advice from professional consultants.

10. ‘Complex problems often have quick,
easy to understand, wrong answers’
stuart.hicks@dunlopheywood.com Tel: 0161 602 3374
Don’t get it wrong; rateable values can go up as well as down!