Business rates and 'reasonable repair'
![]() |
The above photograph is indicative and does not relate to the case described below. |
The case of Newbigin (Valuation Officer) v SJ &J Monk (a firm) (2017) concerned the issues of business rates and 'reasonable repair'.
The dispute between a property owner and the local rating office confirmed the principle that if a property is not in a reasonable state of repair, it is to be valued as it is, not as it ‘should be’, or as the Supreme Court put it:
'Does a commercial building which is in the course of redevelopment have to be valued for the purposes of rating as if it were still a useable office?'
The property concerned was an office building which was in the course of being renovated. When the rateable value was being assessed in January 2012, the premises were vacant and a great deal of the flooring, ceilings, lighting and other fittings had been removed.
The owners' agent suggested to the local valuation officer (LVO) that the rateable value should be reduced from £102,000 to £1, because the premises could not be occupied. The LVO refused, citing legislation which required the LVO to assume a property is in 'reasonable repair' for valuation purposes.
The dispute matter was referred to the Valuation Tribunal, which sided with the property owner, holding that the condition of the building precluded the conclusion that it was in reasonable repair.
In considering the arguments, the Court gave weight to the 'reality principle', which establishes that 'the property must be valued as it exists at the relevant date'. Accordingly, the presumption that it was in reasonable repair could not stand.
The decision overturned a decision by the Court of Appeal which had cast doubt on the applicability of the ‘reality principle’. It will come as a considerable relief to property developers who are refurbishing properties.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
The 5 elements of seiri, seiton, seiso, seiketsu and shitsuke.
Shading for housing, a design guide
A look back at embedding a new culture of shading.
The Architectural Technology Awards
The AT Awards 2025 are open for entries!
ECA Blueprint for Electrification
The 'mosaic of interconnected challenges' and how to deliver the UK’s Transition to Clean Power.
Grenfell Tower Principal Contractor Award notice
Tower repair and maintenance contractor announced as demolition contractor.
Passivhaus social homes benefit from heat pump service
Sixteen new homes designed and built to achieve Passivhaus constructed in Dumfries & Galloway.
CABE Publishes Results of 2025 Building Control Survey
Concern over lack of understanding of how roles have changed since the introduction of the BSA 2022.
British Architectural Sculpture 1851-1951
A rich heritage of decorative and figurative sculpture. Book review.
A programme to tackle the lack of diversity.
Independent Building Control review panel
Five members of the newly established, Grenfell Tower Inquiry recommended, panel appointed.
Welsh Recharging Electrical Skills Charter progresses
ECA progressing on the ‘asks’ of the Recharging Electrical Skills Charter at the Senedd in Wales.
A brief history from 1890s to 2020s.
CIOB and CORBON combine forces
To elevate professional standards in Nigeria’s construction industry.
Amendment to the GB Energy Bill welcomed by ECA
Move prevents nationally-owned energy company from investing in solar panels produced by modern slavery.
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Experimental AI housing target help for councils
Experimental AI could help councils meet housing targets by digitising records.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing tool inc. physical environment, indoor facilities, functionality and accessibility.