Rating Valuation

HC Deb 16 February 1972 vol 831 cc392-4

3. Mr. Thomas Cox

asked the Secretary of State for the Environment if he will give the exact date when the next rating valuation of properties is to take place.

The Minister for Local Government and Development (Mr. Graham Page)

Properties are now being valued for the rating revaluation which takes effect from 1st April, 1973. The new valuation lists must be deposited with the rating authorities by 31st December, 1972.

Mr. Cox

While noting that reply, in view of the substantial increase in property values and rents may I ask whether the Minister agrees that these could result in very large increases in rateable values? As rates determine rents, will he tell us what effect has been given by the Government to the Housing Finance Bill, which is now being discussed, and the possible effect from high rateable values on it?

Mr. Page

The valuation of properties will have to be completed by June this year. The valuation takes account of rental values as of the date when the valuation is made, so it is unlikely to take into account anything in the Housing Finance Bill.

Mr. Rost

Can my hon. Friend give an assurance that in the revaluation property owners who have improved their property, for example by the installation of central heating, will not be penalised as a result?

Mr. Page

No, Sir. Any improvement which increases the rental value must be taken into account in rating assessment.

Mr. Freeson

Will the hon. Gentleman reconsider the answer he gave to my hon. Friend the Member for Wandsworth, Central (Mr. Thomas Cox) about the Housing Finance Bill? Is he not aware that under that Bill local authorities will be required to assess fair rents—that is, market rents less scarcity value—as currently to be applied or estimated? He says also that the rateable value is to be related to current values this year. Surely there is a connection between the two, is there not?

Mr. Page

At this rating revaluation, rateable values are based on a valuation of the rent at which the property will let at the date when the valuation is made. The actual rent being paid is relevant but is not the sole factor. The main factor is the rental value of comparable properties at the time the valuation is made, which will be about June this year.