Thames Valley: Hicks Baker assesses 2017 draft valuation list for business rates
September 30, 2016, saw the introduction of The Valuation Office Agency’s (VOA) draft valuation list for the assessment of business rates on commercial property in England and Wales. These rating valuations will come into effect from April 1, 2017. The ‘standard’ 2017 Uniform Business Rate (UBR) is expected to be 48.0p, a reduction of 1.7p from the 2016 UBR.
With a dedicated retail agency department that covers the Thames Valley, Hicks Baker have reviewed a random sample of these new valuations across key towns in the region to identify the impact they will have on retailers.
It looked at the towns of Reading, Windsor, Slough, Marlow, Henley, Newbury, Wokingham and Maidenhead and, where locations permitted, reviewed a selection of valuations of units in ‘prime pitch on a high street’, 'shopping centres' and 'out-of-town retail', to assess how the new draft list compares to the current 2010 rating list.
Hicks Baker also looked at retailer Boots, which has a regional presence in all of the towns, to see what the regional impact might look like to the chain. Lastly, with Hicks Baker based in Reading, it also reviewed how the valuations vary from pitch to pitch across Reading town centre.
Across the towns selected, many of the prime pitches on the high street locations have an increased rateable value, with increases ranging from 2.3% to 33.3%, however, retailers in prime pitches in Newbury and Reading will benefit from reductions of between 10% and 20% and in some secondary locations in Reading they have reduced by up to 43%.
Fiona Brownfoot, director at Hicks Baker, said: “We would have expected the valuations for Wokingham and Maidenhead to have reduced but in the prime pitches in those locations this has not been the case. However, the increases of popular destinations such as Marlow and Henley were expected, in part due to their lack of ‘competing’ shopping centres within those towns and their quintessentially English market town attraction.
"Overall the region’s shopping centre rateable values have increased on average by 4.3%, two remained the same, with all others increasing. This was to be expected, given the gradual decline in high street shopping destinations in preference of retail and leisure schemes such as Reading’s Oracle. (LDC, September 2016).
"With the exception of Wokingham, where the out-of-town retail is very limited, all other retail parks have increased in their valuations. This was also expected following the growth in consumer’s preference of out of town retailing, with its free parking, convenience and expanding range of operators.
"From the random sample, Reading’s average change is a reduction in rateable value of 8.8%. With the exception of Queen Victoria Street, all other pitches have either remained the same or benefitted from a reduction, even the ‘prime’ end of Broad Street, opposite the Oracle entrance. St Marys Butts enjoyed the most significant of these reductions, followed by the opposite end of Broad Street, then Chain Street. Although, not as many locations have decreased as expected such as Market Place, which remains unchanged.”
Prime pitch on a high street
TOWN |
FASCIA |
ADDRESS |
2010 RATING LIST |
2017 DRAFT RATING LIST |
DIFFERENCE |
NEWBURY |
Maplins |
28-29 Northbrook Street |
£76,500 |
£62,000 |
-19.0% |
READING |
Three |
21-22 Broad Street |
£115,000 |
£103,000 |
-10.4% |
SLOUGH |
Starbucks |
146-148 High Street |
£87,500 |
£89,500 |
2.3% |
HENLEY |
Patisserie Valerie |
4 Market Place |
£32,750 |
£35,000 |
6.9% |
MAIDENHEAD |
Three |
76-78, High Street |
£188,000 |
£205,000 |
9.0% |
WINDSOR |
Cath Kidston |
24 High Street |
£68,500 |
£76,000 |
10.9% |
WOKINGHAM |
Greggs |
6 Broad Street |
£25,500 |
£33,250 |
30.4% |
MARLOW |
The White Company |
30-32 High Street |
£66,000 |
£88,000 |
33.3% |
Shopping centres
TOWNS |
FASCIA |
ADDRESS |
2010 RATING LIST |
2017 DRAFT RATING LIST |
DIFFERENCE |
NEWBURY |
Topman |
31-32 Parkway |
£141,000 |
£141,000 |
0.0% |
SLOUGH |
Iceland |
4-6 The Observatory |
£66,500 |
66,500 |
0.0% |
WINDSOR |
Zara |
32 King Edwards Court |
£272,500 |
£300,000 |
10.1% |
MAIDENHEAD |
WHSmith |
16-22 Nicholson Centre |
£186,000 |
£208,000 |
11.8% |
READING |
Zara |
The Oracle |
£785,000 |
£880,000 |
12.1% |
HENLEY |
N/A |
N/A |
N/A |
N/A |
N/A |
MARLOW |
N/A |
N/A |
N/A |
N/A |
N/A |
WOKINGHAM |
N/A |
N/A |
N/A |
N/A |
N/A |
Out-of-town retail parks
TOWN |
FASCIA |
ADDRESS |
2010 RATING LIST |
2017 DRAFT RATING LIST |
DIFFERENCE |
WOKINGHAM |
CarpetRight |
2b Bridge Retail Park |
£91,000 |
76,000 |
-16.5% |
MAIDENHEAD |
Halfords |
Maidenhead Retail Park |
£158,000 |
£161,000 |
1.9% |
NEWBURY |
Matalan |
Newbury Retail Park |
£377,500 |
£385,000 |
2.0% |
READING |
Smyths Toys |
Reading Gate |
£270,000 |
£297,500 |
10.2% |
SLOUGH |
Outfit |
Bath Road Retail Park |
£565,000 |
£650,000 |
15.0% |
HENLEY |
N/A |
N/A |
N/A |
N/A |
N/A |
MARLOW |
N/A |
N/A |
N/A |
N/A |
N/A |
WINDSOR |
N/A |
N/A |
N/A |
N/A |
N/A |
Reading town centre
FASCIA |
ADDRESS |
2010 RATING LIST |
2017 DRAFT RATING LIST |
DIFFERENCE |
Head Masters |
2 St Marys Butts |
£42,250 |
£24,000 |
-43.2% |
Mango Bean |
80 Broad Street |
£91,500 |
£61,500 |
-32.8% |
The Tasting Table |
30 Chain Street |
£44,250 |
£32,000 |
-27.7% |
Three |
21-22 Broad Street |
£115,000 |
£103,000 |
-10.4% |
Duke Street Barbers |
15 Duke Street |
£18,000 |
£16,250 |
-9.7% |
Vacant |
9 West Street |
£37,250 |
£34,250 |
-8.1% |
Shakeaway |
4 Union Street |
£25,500 |
£23,500 |
-7.8% |
H:room |
14 Cross Street |
£28,250 |
£27,000 |
-4.4% |
GNC Healthfood |
57 Broad Street Mall |
£34,000 |
£34,000 |
0.0% |
Chancellors |
43 Market Place |
£46,750 |
£46,750 |
0.0% |
Coral |
5 Station Road |
£23,500 |
£23,500 |
0.0% |
CEX |
130-131 Friar Street |
£60,500 |
£60,500 |
0.0% |
Hard Edge |
25 Queen Victoria Street |
£36,750 |
£39,750 |
8.2% |
Zara |
Zara, The Oracle |
£785,000 |
£880,000 |
12.1% |
AVERAGE DIFFERENCE |
|
|
|
-8.8% |
Boots
TOWNS |
ADDRESSES |
2010 RATING LIST |
2017 DRAFT RATING LIST |
DIFFERENCE |
WOKINGHAM |
40 Market Place |
£124,000 |
£113,000 |
-8.9% |
MAIDENHEAD |
54 High Street |
£425,000 |
£425,000 |
0.0% |
READING |
47-48 Broad Street |
£460,000 |
£460,000 |
0.0% |
SLOUGH |
184 High Street |
£472,500 |
£472,500 |
0.0% |
HENLEY |
3 Bell Street |
£45,750 |
£48,500 |
6.0% |
WINDSOR |
17-18 Peascod Street |
£330,000 |
£397,500 |
20.5% |
MARLOW |
4-5 Market Square |
£129,000 |
£171,000 |
32.6% |
NEWBURY |
82-83 Bartholomew Street |
£14,250 |
£19,500 |
36.8% |