Valuation Office Agency
Note the guidance below relates to past events and the approach taken reflects the legislation in place at that time. Changes introduced by the Non-Domestic Rating Act 2023 and the Valuation for Rating (Prescribed Assumptions) (Wales) Regulations 2023 [SI 2023 No. 255 (W.34)] means that some of these circumstances would be approached differently for the 2023 and subsequent lists and may not be MCCs at all. See paragraphs 12.7 to 12.12 of Section 2, Part 7 for details of the impact of this legislation on valuation assumptions and MCCs.
1 London Congestion Charge
1.1 The creation of the Congestion Charge Zone resulted in the physical presence of signs, cameras etc and may also be physically manifest by an observable reduction in traffic. There was a clear link from these to the cause - they told you there had been a legislative change. The situation is analogous to an order preventing traffic going down a road. The valuer therefore needed to envisage the existence of the Congestion Charge Zone at the AVD and consider what the consequences, if any, the imposition of an access charge would have on values. A subsequent increase in charge would not be physically manifest and thus not a MCC - but a physical extension to the zone would be.
1.2 For the 2023 and later lists, in England, the imposition of a congestion charging scheme or extension of such a scheme attributable to legislation, provisions made under legislation or advice/ guidance by a public authority would not be an MCC following the NDR Act 2023. In Wales, it would be a matter disregarded under The Valuation for Rating (Prescribed Assumptions)(Wales) Regulations 2023 [SI 2023 No. 255 (W.34)]. So, any valuation impact would only be reflected at revaluation.
2 London terrorist bombings 7 July 2005
2.1 The effect of the London terrorist bombings on the propensity of people to travel within, come to London and to shop may have been physically manifest by a reduction of footfall in shopping streets or noticeably less crowded tube trains. However, there were no observable physical changes to the locality or setting of the hereditaments to be valued. The physically manifest changes in activity did not have a direct and immediately obvious to the eye cause and could only be associated with what were really attitude factors. Therefore, the physical manifestations of reduced footfall etc were to be envisaged as existing at the AVD but divorced from the underlying economic and public perception causes, would not persist in the AVDs economic climate.
3 World Trade Center
See the approach set out in paragraph 13.27 of RM2:7
3.1 The New York World Trade Center was very clearly not within the locality of, for example, New Bond Street shops or hotels in London. Its destruction was, therefore, not a physical change to the locality. It is difficult to conceive that there were any physical changes in the locality of these properties as a result of the destruction of the WTC but if there were then these physical changes should be taken to have already occurred by the AVD.
3.2 The consequence of the destruction of the WTC was actually a public attitude shift both in the USA and in the UK (a non-physical cause). Any consequent footfall reduction taken back to the AVD should be viewed as unlikely to persist in the AVD world and therefore be disregarded.
3.3 In Re The appeal of Kendrick (VO) 2009 the Lands Tribunal said the VT appeared to have treated the events of 11 September as a matter that was physically manifest. It said this was not possible because it was a past happening, not a matter existing on the material day. While past events could not constitute matters for this purpose, it could see that the consequences of such events, if they endured at the material day, could be said to do so. Thus the attitude of air passengers to air travel as the result of the events of 11 September could, it was prepared to accept, qualify as a sub-paragraph (7)(d) matter, provided, of course, that it was physically manifest in the locality of the hereditament. It found, however, that this attitude was not physically manifest because it was masked by a number of other factors all affecting the footfall and numbers of aeroplane movements.
4 Speed restriction on Lake Windermere
4.1 The local authority has imposed a 10mph restriction on boats on Lake Windermere in Cumbria. Whilst the consequence might have been thought desirable to the majority - a reduction in noise and an increase in tranquillity - local businesspeople noticed a reduction in trade as a wealthy and prone to spend segment of visitors, the power boat fraternity, have departed. The change was physically manifest - greater tranquillity and no fast moving boats on the water - and its cause is direct, i.e. the speed restriction.
4.2 For the 2023 and later lists, in England, the imposition of a speed restriction on boats on Lake Windermere attributable to legislation, provisions made under legislation or advice/ guidance by a public authority would not be an MCC following the NDR Act 2023. In Wales, a similar restriction on it would be a matter disregarded under The Valuation for Rating (Prescribed Assumptions)(Wales) Regulations 2023 [SI 2023 No. 255 (W.34)]. So, any valuation impact would only be reflected at revaluation.
5 Foot and Mouth Disease Outbreak 2001
5.1 Valuation officers accepted that the outbreak of FMD in 2001 was an MCC. The disease as such was physically present in many localities, physical signs were present on footpaths etc and in some areas carcass pyres and graves were physically observable and manifest. The cause would have been clear to the hypothetical landlord and prospective tenant standing outside a hereditament. A and D notices to stop businesses trading together with the orders closing footpaths etc were legal matters affecting the physical enjoyment of properties.
5.2 For the 2023 and later lists, in England, the imposition of orders closing footpaths attributable to legislation, provisions made under legislation or advice/ guidance by a public authority would not be an MCC following the NDR Act 2023. In Wales, a similar restriction on it would be a matter disregarded under The Valuation for Rating (Prescribed Assumptions)(Wales) Regulations 2023 [SI 2023 No. 255 (W.34)]. So, any valuation impact would only be reflected at revaluation.
6 Olympic Bid
6.1 On 6 July 2006 the International Olympic Committee announced that London would again host the Games: this time in 2012. The announcement itself is not a MCC being similar to the draft compulsory order announcement in Prodorite or the creation of the enterprise zone in Addis. As with other MCCs it is necessary to show there has been a value significant MCC within the paragraphs of Schedule 6 para 2 (7).
6.2 The announcement itself did not affect the physical state of the locality or the use and occupation of premises in the locality. It is not in itself something covered by Schedule 6 para 2(7).
6.3 As re-development, vacation of premises, redevelopment etc occurred there were physical changes to the locality which did constitute MCCs. These were considered in the normal way as with any other redevelopment scheme.
7 Smoking Ban
7.1 From 2 April 2007 in Wales and 1 July 2007 in England a complete ban on smoking in enclosed public places came into force. The regulations under the Health Act 2006 made it illegal to smoke in virtually all enclosed and substantially enclosed (as defined) public places, workplaces and work vehicles. This includes permanent and temporary structures such as tents and marquees. The law applies to anything that can be smoked including water pipes (such as hookah pipes) and herbal cigarettes. Managers of smoke free premises have legal responsibilities to prevent smoking and ensure no-smoking signs are displayed. These signs must be a minimum of A5 size and must be displayed in a prominent position at every entrance to the smoke free premises. The sign must contain the international no-smoking symbol at least 70mm in diameter and carry the following words No Smoking. It is against the law to smoke in these premises. It is the local councils who are responsible for enforcing this new law.
7.2 Smoking was an activity undertaken by customers at Bingo Clubs, Public Houses, Members Clubs and many other hereditaments including offices. The smoking ban was an MCC because it affected the physical enjoyment of hereditaments.
7.3 For the 2023 and later lists, in England, the imposition of a smoking ban attributable to legislation, provisions made under legislation or advice/ guidance by a public authority would not be an MCC following the NDR Act 2023. In Wales, it would be a matter disregarded under The Valuation for Rating (Prescribed Assumptions)(Wales) Regulations 2023 [SI 2023 No. 255 (W.34)]. So, any valuation impact would only be reflected at revaluation.
8 Impact of flooding on rating assessments
8.1 The incidence of flooding and MCCs was considered in the A