1. Co-Ordination Arrangements
Riding Schools & Livery Stables are a Group co-ordination class and, as such, responsibility for ensuring that the appropriate co-ordination takes place lies with individual Groups. As rental evidence for this class may be sparse or difficult to gauge, it is important that Groups co-ordinate across boundaries, using fully the procedures described in Rating Manual Section 6 - Part 1 and Practice Note 1 - Revaluation 2010.
The Special Category Code 236 should be used. As a Group Class the appropriate suffix letter should be G
2. Valuation approach
2.1 Loose boxes
The first step when establishing a local valuation scheme is to determine a rateable value for a standard loose box as part of a riding school or livery stables. This will vary, depending on location, the degree of competition and the demand for such facilities in a particular area. It is derived from an analysis of the available rental evidence.
When analysing rents, adjustments should be made to reflect factors relevant to the particular hereditament, such as the age and quality of the buildings, availability of services, availability of exercise paddocks, access, planning restrictions on use, etc.
Typically, a standard loose box will have a floor area of approximately 13.5m2, an internal height of at least 2.7m and be of brick or block construction and have adequate drainage and ventilation. Loose boxes within the range 10m2 to 20m2 should be valued at the same price per box, additions/allowances being made for boxes outside this range.
Loose boxes either open directly onto an external yard or may be arranged to open onto an internal corridor. The latter arrangement can be found in older stable buildings where stalls have been converted into loose boxes or where loose boxes have been provided within a former agricultural building. These are sometimes called caged boxes.
Many new, purpose-built, stables also follow this arrangement and are sometimes referred to as American barns. Such buildings should be valued on a price per loose box basis, rather than by applying a price per m2 to the gross area of the building.
2.2 Ancillary Buildings
Generally, these should be valued on a price per m2 basis. However, when inspection reveals that tack rooms or other storage areas are clearly akin to a standard loose box, then the overall loose box price can be adopted. Again following inspection, allowances for poor quality and/or quantum may be appropriate in some cases.
It must be borne in mind that the primary use of this category of property is the stabling of horses and that excessive ancillary facilities may not add to the income generating potential of the premises and hence would not be reflected in the hypothetical tenant’s rental bid. An example would be stables operating from former agricultural buildings, which may include an overabundance of barns or other storage buildings within the farmstead. Judgement must be used to ensure that the value applied to ancillary facilities is not disproportionate to the value of the stables. Similarly, care should be taken where there are an unusually small number of boxes with an indoor school as this might indicate minimal use of the schooling facility.
For the analysis of rents, the following pricings may typically be adopted [subject to local evidence]:
- purpose-built tack room: - in the range £10/m2 - £20/m2 [depending on size and quality]
- hay barn: - £ 3/m2- £7.50/m2 [depending on construction and size]
- purpose built offices, up to: - £10/m2 - £20/m2 [less if a converted stable]
- loft Storage - de minimis
- indoor / Outdoor Arenas - Check not tenant’s improvement [see para 2.3 for detail]
2.3 Outdoor and Indoor arenas
The useable area of an arena used for riding [which may also be referred to as an indoor or outdoor school, as appropriate, or a manège – the latter being often misspelt as menage or ménage] should be a minimum size of 20m x 40m. However, some arenas may not conform to this standard, especially where there are site constraints or an agricultural building has been converted to provide an indoor school. Larger establishments may have arenas in multiples of the standard size or provide separate warm up areas. These varying factors should be reflected in the value applied.
Whilst there may be some superficial similarities between some indoor arenas and industrial or warehouse buildings, the differences are such (eg planning permission, quality, finish, floors or insulation, in addition to location, access, etc.) that industrial or warehouse scales are not appropriate when valuing this type of property.
For the average indoor school a typical value is likely, in most cases, to be in the £4 - £6/m2 range – but be aware that this can vary, depending on the quality of the facilities [see later].
A standard size outdoor arenas should usually be valued within the range of 75p - £1.50/m2, taking the standard 800m2 at £1 /m2 as a norm. Flooding lighting substantially increases the availability of an outdoor arena for use and 25% should be added to these pricings to reflect this.
Typically, a 40m x 20m is likely to cost in the region of £25,000 to build, although this can vary significantly depending on the riding surface used.
There are three basic all-weather surfaces:
- Wax-coated - which provides a more sympathetic surface for the horse all year round.
Total cost £33650, plus VAT 2. Fibre mix - unlike a wax-coated product, it tends not to perform as well in colder weather.
Total cost £25200, plus VAT 3. Dry sand and rubber - this requires regular maintenance and can ride deep in dry weather.
Total cost £19500, plus VAT
NB All costs are as at 1 April 2008, the R2010 AVD.
The construction and drainage, riding surface used and associated ancillary features, such as lighting and the provision of kick boards [fixed to the perimeter to the arena to protect rider, horse and building] are all factors that should be taken into account within this range of values.
Arenas that are of a non standard size should be treated on their own merit, bearing in mind that these will probably be of limited use and wholly unsuitable for competitions or advanced level teaching. Conversely, where the arena is purpose-built to competition standard (with spectator galleries, commentary box etc.), then a higher price per m2 may be appropriate. The accounts may be helpful when considering the potential income generating capacity from competitions and equine demonstrations. This will be particularly so where regular events are held which attract large numbers of the public. Valuers will need to be aware of the interface with regional and national arenas [such as Hickstead] and liaise with the specialist within the SRU dealing with this class.
If a Valuer is satisfied that the size of the arena is excessive in relation to the use of the whole property and/or of poor quality [as may be the case where the arena is a converted agricultural building or where the level of demand is such that the value of the indoor area is disproportionate to main use of the hereditament as livery stables], then a suitable value judgement will need to be made. In this regard, co-ordination within an individual Group and between Groups will be particularly important. Again, the accounts of the occupier, or a consideration of the livery charges relative to other local establishments, may be helpful in determining the income earning potential of the indoor arena in such circ*mstances, but bear in mind the advice contained in paragraph 5 of the main Section regarding the use of accounts in the valuation process for this class.
It may well be that the value of an indoor school is greater for a riding school than for a livery yard. However, bearing in mind that both users are in the same planning use class, vacant and to let this differential may prove difficult to establish and justify in rateable value terms for any particular property.
2.4 Other ancillaries
Hard Surfaced Yards
Valuers should make further adjustments considered necessary to reflect concrete [or similar hard surface] yards where these are clearly in excess of the normal surface finish expected and where they are satisfied this could be reflected in any rental bid.
Parking
Parking or other facilities should be dealt with similarly. A consideration of the accounts, or any charges made for storage of lorries, trailers, etc, should provide clarification on whether an addition should be made in the valuation for this facility.
Usually, more general parking and the provision of toilets will be reflected in the basic pricing applied to the buildings.
Paddocks
Where rateable, an appropriate price per acre should be adopted in accordance with local office values.
For the analysis of rents, the following pricings may typically be adopted:
- As an average, say £100/acre per annum.
- However the full range could well be £75-£200/acre per annum.
2.5 General
The figures referred to above are for general guidance only and are subject to comparable evidence, information on market rents, individual circ*mstances and other relevant valuation criteria.
[The contents of this practice note have been shared with the British Horse Society and the Association of British Riding Schools, together with their respective rating advisers.]
