Under both the Rating Valuations Act 1998 and the Local Government (Rating) Act 2002, the Council is required to value all properties for rating purposes.
A rating valuation (or capital valuation) reflects the property's market value on the date of the valuation. It does not include chattels (e.g. carpets, drapes, light fittings), stock, crops, machinery or trees.
Valuations are made up of :
Our valuations are done for us by Quotable Value(external link), a specialist valuation firm which provides valuation services to most local councils across the country.
2016 rating valuations
Rates are currently based on actual market values as at 1 August 2016. If you build a new house now, its rating valuation will still be based on 2016 market prices to ensure that the rates system is fair (ie. so you do not pay extra just because of house price inflation since 2016).
We must update our rating valuations every three years - the current 2016 values will be used for rates from 1 July 2017 until 30 June 2020.
Importantly, Rating Valuations do not affect how much we collect in rates - they only affect how much of our total rates income is paid for by each property. For example, a large investor owning (say) 2% of the whole District should pay around 2% of our total rates; if market values change over time so that the same investor now owns (say) 3% of the whole District, they should now pay around 3% of our total rates and everyone else should pay a bit less.
The total amount of rates income we need is set each year through our Annual Planning process, and is not related to any changes in market valuations.
The map below shows how rating valuations changed between the old 2013 values and the current 2016 values. Below the map are some frequently asked questions about how we calculated our 2016 rating values.
Valuations and insurance
Rating values should not be used to calculate replacement value for insurance purposes. An estimate of replacement value usually includes demolition and consent costs associated with rebuilding. Such costs are not included in a rating valuation.