1. Market appraisal
1.1 The caravan and leisure camping industries remain big business and an important contributor to UK tourism. The South West and Wales account for the largest number of sites followed by the South East.
1.2 The majority of establishments are privately owned, often family run, and over 60% employ fewer than 5 people.
1.3 The industry is dominated by domestic holidaymakers. There has been a shift towards ‘staycations’ since the 2016 season and in 2019 and 2020.
1.4 Since caravan and camping is largely based outdoors, the industry is weather-dependent. Most sites offer on-line booking which facilitates last minute holiday purchases taking advantage of good weather.
1.5 The aging population is supporting increasing motorhome and static caravan sales with orders increased in 2019 and 2020. Camping and caravanning is also increasingly attractive to a younger clientele.
1.6 Glamorous camping or “glamping” continues to grow in popularity and open up new markets. The offer of a pre-erected large family tent, yurt, tipi or pod often providing proper beds, chairs and flooring, the ability to stand up, running water and flushing toilets aids the growth of this type of attraction and draws in novice and more experienced campers alike. As glamping has become firmly established as part of the camping scene, the quality of the accommodation offered has been raised. For example, the first pods were basic ark type structures offering no more than a weather-tight platform for a double bed mattress. Now there are two-storey pods available to hire with mini kitchen facilities, shower rooms and roof lights for star gazing.
1.7 The shift toward UK staycation holidays has also seen the birth of the luxury short break market in the UK with a number of caravan parks now providing luxury hire fleet units with exceptionally high-quality facilities, often including private spa hot tubs. It is noted that whilst the high fleet revenues generated on such sites may be exceptional the operational costs associated are also high in relation to standard caravan parks.
1.8 The COVID-19 pandemic had a major impact on caravan and camping parks in the period leading up to the antecedent valuation date (AVD) of 1 April 2021. Details of the various restrictions implemented by statute in response to the pandemic, and of the vaccination rollout, can be found online. In February 2021 the UK Government published its Roadmap out of lockdown for England which set out four steps to relax restrictions. Step 1, easing restrictions on outdoor gatherings, had already taken place by the AVD. The later three stages of the Roadmap for England included
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the opening of outdoor hospitality, and non-essential retail (Step 2, no earlier than 12 April);
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most legal restrictions on meeting others outdoors to be lifted, opening of indoor entertainment venues such as cinemas, casinos and bingo halls (Step 3, no earlier than 17 May 2021); and
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the removal of remaining restrictions on social contact (Step 4, no earlier than 21 June).
Subsequent to 1 April 2021 steps 2 and 3 took place as planned, but Step 4 was delayed four weeks to 19 July.
The situation in Wales, both leading up to and after the AVD, was similar although not identical.
2. Changes from last practice note
2.1 There is no significant change to the Practice Note for this class for R2023.
3. Ratepayer discussions
3.1 For R2023 discussions were once again held with the professional rating advisors to the caravan industry.
4. Valuation scheme
4.1 A scheme of valuation for holiday caravan parks, touring and camping sites has been agreed for the 1995 to 2017 rating lists based upon information obtained from actual accounts, adapted to accord with the rating hypothesis. This approach has been continued for the 2023 revaluation.
4.2 Information on receipts and gross profit for caravan parks, touring sites, camping sites and chalet parks, should be sought by serving FOR VO 6045. The wording of this form has changed for the 2023 revaluation to include reference to glamping accommodation. Where, in addition, rental information is sought VO 6046 may also be served.
4.3 Valuers should commence valuations for the revaluation by valuing the fleet sites for which there is evidence of fleet lettings on VO 6045. This will allow the evidence to be used when considering the appropriate fleet income per van for private sites or sites where there is no completed VO 6045.
4.4 Similarly, when considering chalet parks, touring and camping sites it is recommended that the sites with completed VO 6045s are valued first.
4.5 Notices served under Regulation 4 of SI 1990/673 (see paragraph 5.4 in the Rating Manual) will be served centrally for the compiled list valuations and thereafter by the individual caseworker.
4.6 Valuations are held in the Non-Bulk Server (NBS).
4.7 Valuations in the main are the responsibility of the Regional Valuation Units, but the National Valuation Unit are responsible for the largest sites and some sites operated as a group.
4.8 The Leisure Accommodation Class Co-Ordination Team (CCT) are responsible for the valuation schemes.
4.8 As the valuations are receipts based the resultant RVs are specifically excluded from the standard VO rounding scale and the valuers should stand back and look when finalising the RV.
5. Overview
5.1 Paragraph 6 below refers to static only and mixed caravan parks. The scheme of valuation set out in paragraph 6 is intended to cover sites within excess of 10 pitches for static caravans or touring caravans/tents. For sites of 10 or less static caravans or pitches the rental values suggested by the scheme need to be compared with rental values of individually sited static vans, and an appropriate value adopted.
5.2 There is a separate scheme of valuation for single caravans and small sites.
5.3 The approach to sites with less than 10 static vans or which are wholly touring and tenting sites is set out in paragraph 7 below. This includes ‘glamping’ sites.
5.4 The valuation of certificated locations (known as 5CLs), is referred to separately in paragraph 9 below.
5.5 Chalet parks are covered in paragraph 8 below.
5.6 The rating assessment will reflect the estimated net profit achievable as at 1 April 2021 by a hypothetical tenant operating the park in accordance with the statutory hypothesis and looking forward in time. The reasonable efficient operator (REO) will take a view not only on the trade immediately achievable at AVD, but the trade over a period of time ahead, as they are assumed to be taking a tenancy with a reasonable prospect of continuance. The effects of the COVID-19 outbreak need to be taken into account as they would have been anticipated by the parties at the AVD. Trade evidence that includes long periods of lockdowns is unlikely to provide good evidence of the FMT at the AVD. Valuers are advised to take as their starting point the closest reliable trade, which is likely to be the 2019/2020 (ending March or before) trading year and any previous trading years.
6. Static and mixed caravan parks
6.1 See paragraph 5.6 above.
6.2 The approach is based on the receipts and expenditure method as there is insufficient rental evidence for static caravan parks on terms approximating to the rating hypothesis. For these parks, the best evidence is that derived from actual accounts of hire fleet operations (i.e., where site operators own the vans and let them out) as these are the situations which accord most closely with the rating hypothesis.
6.3 Over the years there has been a move away from “fleet” operations and there are now very few fully fleet sites in England and Wales. The more normal method of operation is to sell caravans and charge an annual pitch fee. Under the rating hypothesis these vans are assumed to belong to the park operator (SI 1990/673 - see paragraph 5.4 of the Rating Manual) and to be available for let on a weekly or seasonal basis. Because the number of potential weekly lettings is finite the hypothetical tenant will have to try and let a substantial number of vans, which in reality are owner-occupied, on a seasonal basis. This is unlikely to generate as high an annual income as the weekly let vans. The scheme reflects this by valuing the fully owner-occupied vans at a discount to the fleet vans on the same site.
6.4 In order to avoid the necessity of detailed consideration of accounts for every caravan park, sample accounts have been analysed in order to produce a percentage of turnover which can be used as the valuation basis to be applied to other parks. Consideration of the actual account figures will involve:
a. actual income derived from hire fleet vans
b. actual income from owner-occupied vans sublet through the site operator
c. estimated income from private sub-letting of owner-occupied vans where there is evidence of such activity on the site
d. a notional income which will be derived from the remaining owner-occupied static vans representing the income that could be achieved if such vans were let on an annual basis
e. income from other let accommodation (chalets, flats, cottages etc.)
f. income from winter storage, touring vans and tent pitches
g. gross profit from other income generating facilities, including bars, restaurants, etc.
h. miscellaneous income, for example income from AWP machines, gas sales to touring vans, income from boat storage
i. certain items which normally appear in accounts of caravan parks and sites are excluded, as they would not be available to a hypothetical tenant under the rating hypothesis, such as
j. rental income from pitch fees paid by owners of static caravans
k. profit on sale of static caravans onto the park
l. income/profit from the siting of static vans
m. profit derived from selling insurance to static caravans which form part of the hereditament
6.5 The following scheme set out in paragraph 6.7 has been prepared to simplify the valuation and to allow the majority of parks to be assessed as a proportion of their adjusted turnover. A full receipts and expenditure method valuation can, however, be prepared where it is considered that the “short cut” turnover method is inappropriate. Such cases will be few.
6.6 Gross potential income (or notional income) under the rating hypothesis will be calculated from the sources itemised below.
6.7 Static holiday caravans and pitches – hire fleet caravans.
6.7.1 The actual gross rental income (net of VAT) from hire fleet lettings, should include any separate club membership fees, fuel charges, hire charges for linen etc., before deduction of agent’s letting commission, if any. Where in an individual case it can be proved that the level of receipts including letting commission is significantly above or below the general tone for hire fleet lettings on comparable sites in that area, valuers should have regard to the general tone in deciding on the appropriate hire fleet income per van to adopt. If the site achieving the higher fleet income cannot be compared directly with other sites, then it is expected that a valuer judgement would be made in arriving at the appropriate hire fleet income per van. In particular it is important to bear in mind that hire fleet income evidence may need to be adjusted if it is to be relied on for the valuation of a site of a different hire fleet size, where the type of site is of a different quality, or where the total numbers of vans is significantly different. Hire fleet evidence from sites offering small numbers of fleet caravans may have higher occupancy rates and may be more prone to fluctuate annually. Evidence from such parks should be considered with caution and valuers should always also have regard to the general tone of hire fleet evidence in an area when deciding the correct AFI. Whilst it is assumed single hire fleet units will usually be 12 foot caravans less than 6 years old, care must be taken to check the type and quality of the fleet units and the facilities on offer to those units (e.g. do they have a hot tub spa), in comparison with the other caravans on the site and other sites locally. If the fleet unit is of a different standard than the others locally then the income may need to be adjusted up or down as appropriate. When valuing the residual privately owned caravans on a site the local tone of value for the area should also be considered if the fleet evidence is based on relatively small numbers of units.
6.7.2 Equivalent fleet units (EqFUs). Where there is sub-letting of owner-occupied vans (private vans) either through the park operator or privately these will be converted to Equivalent Fleet Units (EqFUs). Where actual sub-letting through the site operator occurs the actual income per van so derived will be divided by the income per van from the fleet vans to determine the value of the equivalent fleet units.
Example 1
40 hire fleet vans earning income of £4,000 per van.
100 private vans of which 21 sub-let through the operator and earning an income of £2,000 each.
No. of EqFUs = 21 x £2000 ÷ £4000 = 10.
These will be shown as deriving an income of £4000 each.
The residue will be 100 -10 (EqFUs) = 90.
If there is evidence of actual private sub-letting of the remaining private vans then up to 25% or such greater number as can be proved (e.g. by disclosure on VO 6045) may be treated in the same way as vans sub-let through the site operator.
Example 2
Residue as above is 90 @ 25% = 22.
Converted to EqFUs = 22 x 2000 ÷ 4000 = 11.
Total EqFUs are now 10 + 11 = 21.
Residue of owner-occupied statics is 100 - 21 = 79.
6.7.3 Where there is no company sub-letting, but there is evidence of private sub-letting, a view will need to be taken as to the value of the equivalent fleet units of this private sub-letting.
6.7.4 Generally details of sub-letting income will only be known for those vans which are sublet through the park operator. In converting to Equivalent Fleet Units those vans which are let privately it is assumed that they will achieve the same income as sublets through the park unless there is evidence that private sublets achieve a lower income than operator sublets. However, weight should normally be given to estimates of private subletting provided by the operator in arriving at a judgment.
6.7.5 For the avoidance of doubt only fleet or private static caravans should be included when calculating the number of equivalent fleet units. However, when determining the number of effective fleet units again both fleet and private static caravans should be included together with chalets which form part of the fleet hire.
6.7.6 Residual private caravans. The residual private caravans are assumed to derive a notional annual income of 50% of the fleet income of caravans. Hence, in the above example the income from the remaining 79 private (owner-occupied) vans would be:
Residue of private static caravans is 79 @ £4000 ÷ 2 = £158,000.
6.7.7 Adjustment for age and/or lack of services. Actual hire fleet income is normally derived from fleet caravans of good quality, modern (mainly below 6 years old) and fully serviced. Previously these were predominantly 3.048 metres (10 ft.) wide basic caravans but 3.658 metres (12 ft.) wide vans are now the norm for single caravans or up to 6.80 metres (22.309 ft.) wide for a twin unit.
6.7.8 The following scale of adjustments should be adopted to reflect the age of, and services supplied to, the residual private caravans:
Age and Services allowances for private holiday caravans: percentage of fleet value applied
| Full services | Partial services | Unserviced | |
|---|---|---|---|
| Band A (1 to 5 yrs) | 50 | 45 | 35 |
| Band B (6 to 10 yrs) | 50 | 40 | 30 |
| Band C (11 to 15 yrs) | 45 | 35 | 25 |
| Band D (16 + yrs) | 35 | 30 | 25 |
6.7.9 These adjustments have been incorporated into the IT application, although some adjustment may be necessary when considering the allowance for partially serviced vans in Bands A and B - these are combined in the IT application, with a default to 42.5%. This should be increased or decreased within the range of 45% to 40% depending on the mix of ages between bands A and B.
6.7.10 Total allowances for age and lack of services should not reduce the income below that of a minimum of the net pitch fee income for 2019 plus an amount for the caravan normally at 50% of the net pitch fee, or, exceptionally, such other addition to the net pitch fee as ay be appropriate.
6.7.11 Twin units. The fleet income to be adopted for twin units is unlikely to be less than a minimum of 1.5 times the fleet income for a single unit on the same park. Close regard should be had to the actual difference in tariff levels between single and twin units on a site with any actual fleet rental evidence being overriding. No addition is to be made to the scheme rental percentage when valuing twin units.
6.7.12 New caravans. The current practice should continue whereby only new caravans brought on to a site and which are connected to the services are brought into assessment. New caravans coming on to a site but remaining unconnected, whether placed on a pitch or not, should not be assessed until connection to the services has been carried out.
6.7.13 Staff caravans. Those vans occupied by seasonal staff which are not liable to Council Tax will be valued at the same rate as similar aged and serviced private vans - for example between 50% and 25% of fleet income.
6.7.14 Charity vans. Vans occupied by Charities, which would form separate hereditaments in the absence of SI 1990 No. 673, will be separately assessed.
6.7.15 Vacant static pitches. Unless used for touring caravans, vacant static pitches will be ignored.
6.8. Touring and tenting income including glamping.
6.8.1 See paragraph 5.6 above. The estimate of net profit will cover the actual gross rental income received (net of the cost of electricity and VAT) from pitches for touring caravans, motorhomes and tents. It will also include income generated from casual use of static pitches, rally areas and 28 day use. It should be borne in mind that since 2002 site owners have not been permitted to make a profit on the ‘resale’ of electricity.
6.8.2 The growing trend for site operators to include in their offer yurts, tipis or other large family tents has resulted in tenting pitches at some sites being amalgamated where no spare land was available. Only the pitch and not the tent will be rateable, however, the pitches used for these large tents will be larger than a typical standard size tent pitch. When considering the receipts for these large tents and their pitches valuers will need to adjust the receipts to arrive at a notional income for the pitch alone. It is recommended that, in the absence of full particulars, this adjustment should generally fall in the 30% - 40% range and may exceptionally rise to 50% (max) to reflect the non rateable tent, the type of unit sited, its facilities and the associated services provided by the operator. The resulting gross receipts per pitch should then be compared with the pitch income adopted for a standard sized pitch at comparable campsites in the area. Where full particulars are available then a further check may be provided if there are also standard pitches on the site by removing the known yurt/tipi income and their pitches. This will enable the standard pitch income to be established for the site itself. It is considered that the pitch income to be adopted for a yurt, tipi or other large family tent is unlikely to be less than twice the standard sized pitch income for the locality.
6.8.3 Small camping pods should be treated the same as a similar standard camping pitch. However, larger family pods offering greater facilities often including electricity, water and surrounded by paths, lighting and landscaping are likely to be sufficiently annexed to the land to be rateable being more in the nature of a bottom end chalet and should be treated accordingly. Tree houses are also likely to be sufficiently annexed to the land to be rateable and should be considered in the same way as the larger family pods.
6.8.4 For sites which are wholly or mainly comprised of ‘glamping’ elements the rating list description could be “Glamping Site and Premises” to facilitate comparison.
6.9 Other lettings.
6.9.1 See paragraph 5.6 above. Other lettings will include actual gross rental income from any commercial operations on the park (net of VAT), including income generated from holiday lettings of chalets, apartments, cottages, large family pods and tree houses etc.
6.9.2 Seasonal staff premises are to be valued in the same way as set out for caravans above.
6.10 Profit buildings and activities on the park (including winter storage income).
6.10.1 See paragraph 5.6 above. The valuation should include gross receipts from all sources (net of VAT) in respect of profit buildings and activities run by the site operator, including all bed and breakfast receipts, less the cost of purchases and cost of entertainment (i.e., hiring artistes etc.) where relevant.
6.10.2 Concessions. Where buildings/areas are let on concessions or franchised, the concession/franchise fee(s) received will normally be added direct to rateable value at the end of the turnover calculation after reflecting the site operators’ liability for repairs, insurance, services, etc. normally at 50% of the concession/franchise fee. Where the circumstances indicate otherwise, for example in the case of income from car boot sales or significant winter storage where there are further overheads, a different percentage may be warranted.
6.10.3 Caravan storage. The first £5,000 gross receipts (excl VAT) from the winter storage of touring caravans should be valued at the standard rental percentage for the site. The gross receipts (excl VAT) in excess of £5,000 should be valued at a rental percentage between 25% and 35%. The more basic the storage site the higher the percentage adopted.
6.10.4 As an example, it is appropriate to adopt 35% where the storage area has limited or no security adaptations, has a grass or gravel surface.
6.10.5 Storage areas which have fenced boundaries, concrete or tarmac surfacing, CCTV, keypad access and/or other security features should be valued at 25%. For facilities valued at this end of the range, the park staff will usually take responsibility for moving vans.
6.10.6 Some sites offer storage during the season including tow-in-tow-off (TITO) to pitches that are hired by the day or week as an alternative to hiring a pitch at a seasonal rate (where vans stay on one pitch for the whole season). There are additional costs associated with this kind of operation compared with winter storage. In these cases, facts should be obtained for the site in question including the proportion of storage income earned from TITO and winter storage and the number of pitches affected. In cases where the cost and influence of TITO is shown to be significant then the residual storage receipts in excess of £5,000 should be valued at a lower rental percentage to be determined by the facts in each case.
6.11 Valuation considerations.
6.11.1 Valuations are usually to be made to whole or half percentages.
6.11.2 Generally, the percentage to be adopted will be an overall one for parks in their totality. This however does not prevent valuers from using different percentages on separate income streams so as to arrive at an overall percentage which is fair in relation to other parks.
6.11.3 The underlying reason for varying the percentage according to the income/unit mix is to reflect expected profitability.
6.11.4 A park with a large range of built facilities and/or a large proportion of hire-fleet caravans will be assessed close to the bottom end of the percentage range. Non-commercial parks with no hire-fleet caravans and a substantial proportion of touring pitches will be assessed at or close to the upper end of the percentage range.
6.11.5 There are also other features of parks which would tend to increase or decrease net profitability, and which should result in the adoption of a scheme percentage higher or lower than a park without such features.
6.11.6 An example of such an additional feature likely to reduce profitability is a requirement to herd caravans in the winter. This would normally result in a reduction in the overall percentage taken compared to a similar park without this disadvantage.
6.11.7 Profit earning buildings should reflect their value to the park. The addition of a small club to a park with no buildings will normally result in a reduction in the overall percentage by ½% to 1%. But regard should also be had to its effect in increasing the overall attractiveness of the park, which should be reflected in the income per van/pitch. The addition of even a small club to a park with no buildings should result in an increase in RV. A common sense approach should be taken in interpreting the scheme. In exceptional circumstances it may also be appropriate to take account of the cost of providing specific guest services e.g., health spa treatments, if additional trained staff are required to provide these services.
6.11.8 A park with extensive non-revenue buildings e.g., swimming pool, sports hall etc. should be taken at a lower percentage than parks with buildings of a similar floor area, where all the buildings are principally revenue earning. Particularly where the latter buildings are modern and well laid out with low running costs and have a high quantum of gross profit, both in revenue amounts and percentage of gross profit, then the percentage adopted will be higher than parks with similar building floor areas without these features.
6.11.9 The 2017 list percentage adopted should not be carried over for R2023 valuations. Instead, each R2023 valuation should be considered afresh.
6.11.10 If alterations to the park take place during the valuation period, including changes in the number and/or types of caravans, this may be treated as a material change of circumstance and the assessment revised accordingly. Changes in the nature or physical state of the caravans themselves since the beginning of the list, or the previous material day, are to be disregarded in accordance with the provisions of LGFA 1988 Schedule 6 para 2B.
7. Touring parks and camping sites (excluding certificated locations - 5CLs)
7.1 Touring parks and camping sites will also be assessed on the basis of profitability adopting a philosophy similar to that for static holiday caravan parks.
7.2 Highly developed parks with all weather, serviced pitches, and a substantial range of facility buildings, will be assessed close to the bottom end of the percentage range. “Bare field” sites, with little in the way of roads, pitch services and no buildings other than toilet/basic shower blocks, will be assessed close to the top of the percentage range. This difference is to reflect the outgoings that a hypothetical tenant would reasonably expect to incur.
7.3 Gross receipts (excl VAT) from the winter storage of caravans should be valued in accordance with the guidance given in paragraph 6.10.3 above.
7.4 As with the valuation of static/mixed sites above, features of a touring park or camping site affecting net profitability should be considered in arriving at the overall percentage to RV. For example, where the buildings in the first example are of a particularly high standard with low maintenance and running costs the percentage should normally be taken at ½% or 1% more than would otherwise be the case. Conversely if the buildings are particularly poor, the percentage should normally be taken at ½ % or 1% less than would otherwise be the case.
8. Chalet parks
8.1 Chalet Parks vary. They range from the large commercial park, perhaps containing several hundred chalets plus various amenity and entertainment buildings, to the small personally run operation, often of a few chalets adjoining an owner’s house.
8.2 The traditional self-catering chalet was typically of timber framed and clad construction, with a flat felted or sometimes pitch felted roof. A number of these may have been finished externally with a Tyrolean or flat concrete spray to give a more solid appearance. The thermal insulation quality of such chalets is poor.
8.3 During the late 1950s and early 1960s numbers of chalets were built of block or brick construction, usually with a flat felted roof but sometimes with a pitch tiled roof. Whilst being of more solid construction than the original timber chalets these can now appear very basic and unless they have been substantially updated, fall some way short of current domestic quality.
8.4 In more recent years there has been a trend to higher standards of chalet construction: Scandinavian timber lodges, log cabins or brick or block-built chalets. These are comparable in quality to domestic standards. Generally, however, the size of chalets will be of the order of 30 to 50m2 GIA and thus are usually smaller than typical domestic properties.
8.5 Valuation approach.
8.5.1 A number of caravan parks have chalets as well as caravans and in the settlement of the 1995 to 2017 list appeals for caravan parks, the agreed caravan park basis was adopted for such caravan parks where chalets form up to about 50% of the total units.
8.5.2 Chalets have a greater degree of permanence and have longer lives than caravans. The special assumptions that have to be made to fit the rating of caravan parks to the hypothesis do not apply to chalet parks and a valuation on receipts and expenditure would follow similar lines to those for other classes of leisure property.
8.5.3 Nevertheless, the caravan parks basis with adjustment, could usefully be applied to obtain fair assessments and ensure consistency between caravan parks with substantial numbers of chalets and chalet parks per se.
8.5.4 With the better smaller chalet parks however, the operator may well be in competition with other holiday accommodation, such as self-catering holiday accommodation complexes which may be of a similar nature and standard. In the latter case the approach will be by way of a price per chalet, in direct comparison with the holiday accommodation basis applied in the locality.
8.5.5 Paragraph 8.6 below sets out examples of different types of chalet park and the valuation approach to be adopted in each case. This is a continuation of the scheme adopted for previous rating lists. Given the great variety of properties however, in exceptional cases causing difficulties it is open for valuers on either side to request the production of accounts to enable individual assessments to be fairly established.
8.6 Examples
a. Caravan parks/chalet parks with up to 50% units comprising chalets. Generally, unless the chalets exceptionally are of modern quality, the caravan park basis can be fairly adopted. Whereas the older traditional type of chalets on caravan parks will be treated at the same percentage as caravans, a different approach will be taken for the superior chalets, particularly those in the nature of modern Scandinavian type lodges and domestic quality holiday accommodation. These will be taken at a higher percentage than caravans, depending on their merits and having regard to the valuation scheme for self-catering complexes. This is an exception to the general overall percentage approach.
b. Chalets parks where the majority of accommodation is chalets but up to about 20% or so caravans are present. Where the great majority of chalets are of the original timber framed type and are generally more than 30 years old, then no adjustment need be made to the caravan park basis. The chalets may be expected to have higher than average repair costs, and the occupancy rate may be modest.
c. Chalet park with some caravans as the above, but the chalets though generally 30 years or more in age are of brick or block construction. The caravan park basis may be adopted for such sites but an addition of 1% to 3% should be made to the percentage adopted to gross profit, less entertainment costs, having regard to the quality and degree of modernisation present. If the chalets are basic and unmodernised then no addition to the caravan basis need be made. Regard should also be had to the valuation scheme for self-catering complexes. In considering whether an uplift is appropriate, or to quantify the amount of the uplift within the range above, regard should be had to the valuation scheme for self-catering complexes.
d. Large chalet park with few or no caravans. Chalets generally over 30 years or more age but of brick and block construction, similar to c above. Some modern types may be present in small numbers. Again, the caravan park basis may be adopted with an up-lift of 1% - 3% to the rate to gross profit less entertainment, having regard to the quality and degree of modernisation. In considering whether an uplift is appropriate, or to quantify the amount of the uplift, regard should be had to the valuation scheme for self-catering complexes. In considering whether an uplift is appropriate, or to quantify the amount of the uplift within the range above, regard should be had to the valuation scheme for self-catering complexes.
e. Large commercial chalet park with significant numbers of modern chalets/Scandinavian lodges, log cabins etc. Regard should also be had to the valuation scheme for self-catering complexes. Valuer judgement, as to the up-lift to the caravan park basis but most sites should be contained within an up-lift of up to 5% to the normal caravan park percentage rate. In considering whether an uplift is appropriate, or to quantify the amount of the uplift within the range above, regard should be had to the valuation scheme for self-catering complexes.
f. Intermediate sized chalet parks, typically of 50 to 60 or so chalets. Whilst such chalet parks are larger than the typical holiday cottage complex, regard may need to be paid both to the basis for the larger chalet parks and to the rate per chalet which would be adopted for smaller parks than this from the valuation scheme for self-catering holiday complexes where the quality of the chalets or the site is more akin to the smaller holiday accommodation complex in the locality.
g. Small chalet parks typically up to about 20 or so chalets. The chalets and the site may well be more attractive than the general run of chalet parks and there could be more traditional accommodation types included. Generally, a basic chalet park in this category should be valued by direct comparison with valuation scheme for self-catering holiday accommodation used locally. Such basis will usually go direct to a price per chalet or per single bed space having regard to the size and quality of the accommodation. Only where the chalets are clearly superior to the generality of holiday accommodation in the locality should higher levels of value, which may be demonstrated by accounts, be adopted. Where there are significant income producing buildings value the whole on a percentage to gross profit.
8.6.1 Staff chalets should be valued at 50% of the income adopted for letting chalets.
8.7. Information to be requested. FOR number VO 6045 should be served in respect of Chalet Parks, and VO 6046 served in addition where lease details are to be sought.
9. Certificated locations (5CLs)
9.1 Introduction.
9.1.1 Certificated locations (5CLs) are caravan and camping sites which are subject to Certificates issued by organisations exempted from normal site license requirements under paragraph 5 Schedule 1 Caravan Sites and Control of Development Act 1960. The sites involved will generally have the character of farm sites although many are operated in conjunction with different hereditaments.
9.1.2 These certificates have to be renewed annually. The certificate requires that the site is used only by members of the exempting organisation for recreational purposes, for a maximum stay of 28 days. Not more than 5 caravans can be located on the site at any one time (hence the term 5CLs for such sites). Also, the site operator has to obtain public liability insurance and carry out electrical and non mains water tests as appropriate.
9.1.3 The R2023 valuation scheme should be applied subject to the qualifications outlined below.
9.2. Basic 5 CLs.
9.2.1 These are, in effect, undeveloped ‘greenfield’ sites with standard facilities only - i.e., drinking water, waste water/chemical closet disposal facilities with flushing tap and dustbin.
9.3. Developed 5 CLs.
9.3.1 These will have built facilities in addition to the basic site. A site with only electric hook ups in addition to the basic facilities should be treated as ‘developed.’
9.3.2 The valuation scheme takes into account the degree of commercialisation. The greater the range of facilities, the higher the working expenses and the lower is the percentage to RV.
9.3.3 Assessments should be rounded down to the nearest £25.
9.4. Description and Address.
9.4.1 5CL sites should be given the Primary Description Code ‘CC’, with the standard description ‘Camping Site’. The words ‘and Premises’ should only be added to the description in those few cases where there are significant additional buildings over and above those normally found at these sites. Where the hereditament, in the absence of any agreement to the contrary (such as a tenancy agreement), is a farm or agricultural land on which the 5CL is situated then the description in the Rating List should be “camping site (part exempt)” or “camping site and premises (part exempt)”.
9.4.2 In most cases the hereditament will include domestic property and therefore be composite, where this is the case it should be marked as such.
9.4.3 The address of the site should always commence with the words ‘Certificated location at……….. (for example, hill farm)’.
9.5. General.
9.5.1 In arriving at the R2023 RV valuers must ensure that this does not exceed the tone level of assessment for non-certificated touring sites in the locality having similar facilities.
9.5.2 Given the simple nature of these properties and the modest level of assessment likely to apply in most cases, generally one year’s receipts should suffice. Where the receipts are clearly out of line with other similar sites in the locality weight should be given to the prevailing ‘‘tone’’ but reflecting any differences in location or physical attributes of the sites.
9.6. Seasonality and unit of assessment.
9.6.1 In light of legal opinion in respect of a steam fair, the rare incidence of “seasonal assessments” for 5CL sites should cease to exist.
9.6.2 It is considered that the site owner, usually the farmer, should be regarded as remaining in occupation of the whole site all year round. Consequently, VOs should not remove a 5CL assessment from the Rating List at the end of the season even if the site reverts to an exempt agricultural use.
9.6.3 In many cases the unit of assessment will be the farm, or agricultural land as a whole, including the 5CL site, where a single, part exempt, assessment is appropriate. The assessment should remain in the list all year round.
Appendix 1
Basic Certificated Locations and Sites (5CLs)
Valuers are advised to take as their starting point the gross receipts, which is likely to be the 2019/2020 (ending March or before) trading year and any previous trading years.
Undeveloped sites are valued at 23.5% of receipts, rounded down to next £25.
Appendix 2
Developed Certificated Locations and Sites (5CLs)
Valuers are advised to take as their starting point the gross receipts, which is likely to be the 2019/2020 (ending March or before) trading year and any previous trading years.
Developed sites which benefit from a degree of commercialism, the rate applied to the toned gross receipts will fall within the range of 15% to 18.5% as outlined in the leisure caravan park and touring/camping site agreement (the broad principle of which is that the greater the range of facilities the higher the working expenses and the lower is the percentage to RV). See Appendix 4. For example:
a. where the site is otherwise a ‘greenfield’ one but has 5 electric hook ups, 18.5% of gross receipts would be applied to arrive at the RV;
b. where the site has 2 or 3 electric hook ups (EHUs) and a small toilet block, but retains the green field characteristics (i.e.. grass roadways and no landscaping), 18.5% of gross receipts would also be applied to arrive at the RV;
c. where the site has 5 EHUs, a shower/toilet block and tarmac or gravel roads, 16.5% of gross receipts would be applied to arrive at the RV as would be the case for touring parks.
Assessments should be rounded down to the nearest £25.
Appendix 3
Static / Mixed Parks (with Static Caravans and Twin Units)
| A: 0-10% of total income from tourers | |||||
|---|---|---|---|---|---|
| Number of Equivalent Fleet Units as % of all statics | No. Buildings | Small club & shop | Limited profit & non-profit buildings outdoor pool? | Standard profit & non-profit facilities: Incl: pool, entertainment & eateries (high profit buildings) | Extensive profit & non-profit facilities: Incl: large indoor pool & significant entertainment & eateries |
| 75 - 100 | 12 | 11.5 | 10.5 | 8.5 | 8 |
| 30 - 75 | 12.5 | 12 | 11 | 9 | 8.5 |
| 10 - 30 | 13 | 12.5 | 11.5 | 9.5 | 9 |
| under 10 | 13.5 | 13 | 12 | 10 | 9.5 |
| Where there are over 100 Effective Fleet Units (Extensive) on the park the percentage will be amended as follows: | |||||
| 75 - 100 | 11.5 | 11 | 10 | 8 | 7.5 |
| 30 - 75 | 12 | 11.5 | 10.5 | 8.5 | 8 |
| 20 - 30 | 12.5 | 12 | 11 | 9 | 8.5 |
| 10 - 20 | 13 | 12.5 | 11.5 | 9.5 | 9 |
| under 10 | 13.5 | 13 | 12 | 10 | 9.5 |
| Where there are over 200 Effective Fleet Units (Super) on the park the percentage will be amended as follows: | |||||
| 75 - 100 | 11 | 10.5 | 9.5 | 7.5 | 7 |
| 30 - 75 | 11.5 | 11 | 10 | 8 | 7.5 |
| 20 - 30 | 12 | 11.5 | 10.5 | 8.5 | 8 |
| 10 - 20 | 12.5 | 12 | 11 | 9 | 8.5 |
| under 10 | 13 | 12.5 | 11.5 | 9.5 | 9 |
| B: 10% - 30% of total income from tourers | |||||
| Number of Equivalent Fleet Units as % of all statics | No. Buildings | Small club & shop | Limited profit & non-profit buildings outdoor pool? | Standard profit & non-profit facilities: Incl: pool, entertainment & eateries (high profit buildings) | Extensive profit & non-profit facilities: Incl: large indoor pool & significant entertainment & eateries |
| 75 - 100 | 12.5 | 12 | 11 | 9 | 8.5 |
| 30 - 75 | 13 | 12.5 | 11.5 | 9.5 | 9 |
| 10 - 30 | 13.5 | 13 | 12 | 10 | 9.5 |
| under 10 | 14 | 13.5 | 12.5 | 10.5 | 10 |
| Where there are over 100 Effective Fleet Units on the park the percentage will be amended as follows: | |||||
| 75 - 100 | 12 | 11.5 | 10.5 | 8.5 | 8 |
| 30 - 75 | 12.5 | 12 | 11 | 9 | 8.5 |
| 20 - 30 | 13 | 12.5 | 11.5 | 9.5 | 9 |
| 10 - 20 | 13.5 | 13 | 12 | 10 | 9.5 |
| Under 10 | 14 | 13.5 | 12.5 | 10.5 | 10 |
| Where there are over 200 Effective Fleet Units (Super) on the park the percentage will be amended as follows: | |||||
| 75 - 100 | 11.5 | 11 | 10 | 8 | 7.5 |
| 30 - 75 | 12 | 11.5 | 10.5 | 8.5 | 8 |
| 20 - 30 | 12.5 | 12 | 11 | 9 | 8.5 |
| 10 - 20 | 13 | 12.5 | 11.5 | 9.5 | 9 |
| under 10 | 13.5 | 13 | 12 | 10 | 9.5 |
| C: 30% - 50% of total income from tourers | |||||
| Number of Equivalent Fleet Units as % of all statics | No. Buildings | Small club & shop | Limited profit & non-profit buildings outdoor pool? | Standard profit & non-profit facilities: Incl: pool, entertainment & eateries (high profit buildings) | Extensive profit & non-profit facilities: Incl: large indoor pool & significant entertainment & eateries |
| 75 - 100 | 13 | 12.5 | 11.5 | 9.5 | 9 |
| 30 - 75 | 13.5 | 13 | 12 | 10 | 9.5 |
| 10 - 30 | 14 | 13.5 | 12.5 | 10.5 | 10 |
| Under 10 | 14.5 | 14 | 13 | 11 | 10.5 |
| Where there are over 100 Effective Fleet Units on the park the percentage will be amended as follows: | |||||
| 75 - 100 | 12.5 | 12 | 11 | 9 | 8.5 |
| 30 - 75 | 13 | 12.5 | 11.5 | 9.5 | 9 |
| 20 - 30 | 13.5 | 13 | 12 | 10 | 9.5 |
| 10 - 20 | 14 | 13.5 | 12.5 | 10.5 | 10 |
| Under 10 | 14.5 | 14 | 13 | 11 | 10.5 |
| Where there are over 200 Effective Fleet Units on the park the percentage will be amended as follows: | |||||
| 75 - 100 | 12 | 11.5 | 10.5 | 8.5 | 8 |
| 30 - 75 | 12.5 | 12 | 11 | 9 | 8.5 |
| 20 - 30 | 13 | 12.5 | 11.5 | 9.5 | 9 |
| 10 - 20 | 13.5 | 13 | 12 | 10 | 9.5 |
| Under 10 | 14 | 13.5 | 12.5 | 10.5 | 10 |
In the case of static/mixed parks with income from touring falling within a range of 50% to 60% of total income, valuer judgement should be applied considering the scale and nature of the park and trading history as to where a park should be valued between the percentages set out in Appendix 3 and Appendix 4.
N.B. These examples are as a general guide to valuers. If net profitability of an individual park is likely to be greater or less than normal these rates can be varied by +/- 0.5% and exceptionally +/- 1.0%. Evidence of abnormal net profitability will be required. A “negative” example might be a difficult site where unusually high operating costs are incurred or where the operator supplies a very high-quality service provision including hot tubs. A “positive” example might be an undemanding, straightforward but exceptionally well-located park.
Paragraph 6.7.2 of the Practice Note explains Equivalent Fleet Units.
Paragraph 6.7.5 of the Practice Note describes Effective Fleet Units.
The following are examples of how the valuation scheme matrix should be interpreted to reflect the characteristics of the park.
For example:
(1) A wholly hire-fleet park without buildings will normally be taken at 12%
(2) A park with 33% hire-fleet caravans, 33% private caravans and 33% touring and tenting pitches, with a small range of buildings, will also normally be taken at between 12% and 13%
(3) A park consisting wholly of private caravans without buildings will normally be taken at 13.5%
(4) The same park with touring income as well would be taken at between 13.5% and 14.5%
Appendix 4
2: Touring Parks & Camping sites
| Basic site no buildings | Basic site, basic facilities incl. roads, showers & reception | Standard park, adequate facilities such as roads, shop, reception & showers | As previous but landscaped with modern better quality facilities or a small club | As previous plus outdoor pool &/or more extensive buildings | As previous plus indoor pool | |
|---|---|---|---|---|---|---|
| Over 50% EHU’s | 17.5 | 16.5 | 15 | 14 | 13 | 12.5 |
| 0 - 50% EHU’s | 18.5 | 17 | 15.5 | 14.5 | 13.5 | 13 |
These examples are as a general guide to valuers. If net profitability of an individual park is likely to be greater or less than normal these rates can be varied by +/- 0.5% and exceptionally +/- 1.0% subject to valuer judgement. Evidence of abnormal net profitability will be required. A “negative” example might be excessive or abnormally high staff overheads (ie, group operated sites due to the necessity to have multiple warden couples). A “positive” example might be an undemanding, straightforward but exceptionally well-located park.
Appendix 5
Small Sites Scheme
Introduction
Caravans are grouped into one assessment as a result of SI 1990 No 673 which provides that, where pitches for leisure caravans on a relevant site would constitute separate hereditaments by virtue of being separately occupied by persons other than the site operator, those pitches shall be treated as a single hereditament, together with so much of the rest of the site as is in the occupation of the site operator.
“Relevant site” means a site which has an area of 400 square yards or more and which includes some non-domestic property.
The agreed scheme of valuation in PN 1 is intended to cover sites within excess of 10 pitches for static caravans, or touring sites. It envisages the site being run commercially as a business. It is not intended to be applied to single caravans or sites with less than 10 caravans.
PN 1 paragraphs 5.1 and 5.2 refer to the separate scheme of valuation for single caravans and small sites.
The small site scheme may not be suitable for new sites which will have more than 10 pitches eventually but which initially may have only a few vans as the site is developed, especially where there are other facilities in place.
There is no statutory basis for this small site scheme. Nor has it been agreed with the industry.
Sites with less than 10 caravans
In respect of single caravans although there may be an element of commercial usage in that the owner of a van may let it for short periods to holiday makers, there is also usually a larger element of personal use which needs to be reflected. Accordingly, the scheme values used for commercial sites would under-value this caravan if it were to be valued as a private van at half or less of the fleet percentage.
The motivation of a bidder for a site with 2 to 9 caravans will usually be commercial. So for privately owned vans the lower percentages used in the commercial scheme are ignored in the small site scheme.
The rating manual refers to valuation methods at paragraph 8.2.7.
1. Comparison with rented single vans or chalets
For sites of 10 or less static caravans the rental values suggested by the scheme need to be compared with actual rental values of individually sited static vans, or comparison with the assessments of non-traditional dwellings in the area such as chalets (Racine v Buncombe (V)) 1967 LT (1969) RCN 92). However, rental evidence is scarce.
2. Net pitch fee addition
An alternative approach is to consider adding to the pitch fee a rental value for the caravan based upon its second-hand value. However, this evidence is not collected and analysed. A simpler approach is to add between 20% and 50% of the net site pitch fee to represent the rental value of the caravan.
Pitch fees are provided on VO 6045. A pitch fee may require adjusting to remove any amounts for rates or services to arrive at a ‘ net pitch fee ‘.
3. Small site scheme
It has become the practice to take a third approach which is the small site scheme.
As the valuation scheme for commercial caravan parks is based on a percentage of holiday hire caravan receipts for the locality, a similar approach should be adopted for small sites with adjustments to reflect the higher value of a single caravan and pitch. The starting point should be local fleet incomes (the average fleet income (AFI) ‘tone’). The adopted percentage should not be incompatible with the valuation scheme for single units of self-catering accommodation.
For the 2021 List the self-catering scheme is as follows:
single units and complexes of 2-4 units, 15-16% (16% for the poorest quality)
larger complexes:
A highest quality 11%
B quality 13.5%
C lowest quality 16%
The motivation of a bidder for a site with 2 to 9 caravans will usually be commercial. So for privately owned vans the lower percentages used in the commercial scheme are ignored in the small site scheme. However, the allowances for age and lack of services are duplicated - see PN 1 paragraph 6.7.8.
4. 2-10 fleet hire static caravans
| No. Vans | % |
|---|---|
| 1 | 16 |
| 2 | 16 |
| 3 | 15.5 |
| 4 | 15 |
| 5 | 14.5 |
| 6 | 14 |
| 7 | 13.5 |
| 8 | 13 |
| 9 | 12.5 |
| 10 | 12.5 |
| 11 | National Scheme (12%) |
5. 2-10 privately owned static caravans
| No. Vans | % |
|---|---|
| 1 | 16 |
| 2 | 15 |
| 3 | 14 |
| 4 | 13 |
| 5 | 12 |
| 6 | 11 |
| 7 | 10 |
| 8 | 9 |
| 9 | 8 |
| 10 | 7 |
| 11 | National Scheme (13.5%) |
Age and Services Allowance
| Full | Partial | None | |
|---|---|---|---|
| Band A | 0 | 10 | 30 |
| Band B | 0 | 20 | 40 |
| Band C | 10 | 30 | 50 |
| Band D | 30 | 40 | 50 |
The following table shows how the scheme for private vans works in practice assuming the tone AFI is £4,000.
| No. Vans | % | Tone AFI | Age and Service Adjustment | Total >RV | RVVan |
|---|---|---|---|---|---|
| 1 | 16.00% | £4000 | 100.00% | £640 | £640 |
| 2 | 15.00% | £4000 | 100.00% | £1,200 | £600 |
| 3 | 14.00% | £4000 | 100.00% | £1,680 | £560 |
| 4 | 13.00% | £4000 | 100.00% | £2,080 | £520 |
| 5 | 12.00% | £4000 | 100.00% | £2,400 | £480 |
| 6 | 11.00% | £4000 | 100.00% | £2,640 | £440 |
| 7 | 10.00% | £4000 | 100.00% | £2,800 | £400 |
| 8 | 9.00% | £4000 | 100.00% | £2,880 | £360 |
| 9 | 8.00% | £4000 | 100.00% | £2,880 | £320 |
| 10 | 7.00% | £4000 | 100.00% | £2,800 | £280 |
| 11 | National Scheme (13.5) | £4000 | 50% | £2,870 | £261 |
There are two ways to follow this advice in the non-bulk server (NBS) valuation.
- the private vans should be valued at double the percentage in the table above on the ‘Summary’ tab. The age and service percentage adjustments in the ‘Single Static 2’ tab should not be adjusted for this approach
- or the percentage adjustments in the ‘Single Static 2’ tab can be adjusted and the percentages in the table above adopted on the ‘Summary’ tab. For example, for private vans age A/B the percentage would be adjusted from 50% to 100% for fully serviced pitches. The adjustments would be to the following:
Age and Services Allowance Percentage Adjustments
| Full | Partial | None | |
|---|---|---|---|
| Band A | 100 | 90 | 70 |
| Band B | 100 | 80 | 60 |
| Band C | 90 | 70 | 50 |
| Band D | 70 | 60 | 50 |
6. Check valuation
The valuation derived from the scales in paragraph 5 above should be checked to ensure that the rateable value is within the range 1.2 to 1.5 times the fair maintainable pitch fee plus the addition for a modern caravan in the range £300 to £500.
7. Valuation Remarks
A remark should be added to the remarks box in single static page and on summary page to clearly state that the small site basis has been used. This will alert anyone subsequently viewing the valuation or amending it.
A remark should also be made about why the small site scheme has been considered and the decision taken not to adopt it, for example for developing sites.
