GovWire

Church Clubs forming part of Church Halls, Chapel Halls or similar buildings are exempt if the conditions of para 11 of Schedule 5 LGFA 1988 are fulfilled. These specify that the hall must be used in connection with a place of public religious worship, (which either belongs to the Church of England or the Church of Wales, or has been certified by law as a place of religious worship), and for the purposes of the organisation responsible for the conduct of public religious worship in that place. These provisions are dealt with more fully in RM 4:8.9.

Many Community Centres provided by local authorities are conducted on similar lines to members clubs and when considering who is in rateable occupation of this class of hereditament Valuation Officers should determine who is in paramount control of the use of the premises.

If the local authority can be shown to be in paramount control and, consequently, in rateable occupation, the assessment should be determined in the absence of reliable rental evidence by reference to the contractors basis method.

The Lands Tribunal decision in Addington Community Association v Croydon Borough Council and Gudgion (VO): LT 1967 RA 96 considered the ability to pay principle following the decision in Tomlinson (VO) v Plymouth Argyle Football Co Ltd (CA 1960: 53 R&IT 297) and may be cited where it is contended that the cost of the buildings considerably exceeds what is really necessary. This case was however decided on its own facts and the valuer should adopt a prima facie assumption that a community centre constructed for a local authority meets the needs of that authority and that its adjusted cost is indicative of value.

Where it is considered that a Community Centre is conducted as a members club and that the club is in rateable occupation, the assessment should be determined in accordance with the principles set out in RM5:260 although the presence of the local authority as a potential bidder should not be disregarded.

1. Market Appraisal

This property class encompasses a number of property types including traditional village halls, purpose-built community centres and smaller huts used by the scouts, army, air and sea cadets.

The organisations that typically occupy this class of property are largely dependent on grants and loans from local or central government or are required to self-fund through local initiatives. The Rural Community Buildings Loan Fund also plays a crucial role in helping community groups renovate, refurbish and construct buildings such as village halls, church halls and community centres.

The sector contains a number of charitable occupiers. In a report the Charity Commission noted that of the 10,000 village halls in England, over 9000 village halls and community centres are occupied by bodies recognised as charities representing more than 5% of the Charities Register. This is particularly prevalent in rural areas where demographic changes have resulted in halls serving an increasingly elderly population.

The Charity Commission urges community hall operators to be more dynamic in their outlook and search to provide relevant activities to attract the local population. Consequently, this has meant that some community halls have adapted and broadened their services to be seen as providing a community hub.

The 1990s / early 2000s saw a steady decline in Scout Membership however a revamp of the organisation saw an uptake in new members. By 2009 the Scout Association reported its biggest increase in membership since 1972 and current statistics demonstrate there have now been 15 years of sustained youth growth through to 2020. This follows the 2014-18 strategic plan which focused upon Growth, Inclusivity, Youth-Shaped Scouting and Community Impact and their new Skills for Life strategy seeks to deliver continued growth from 2018 through to 2023. 2020/21 was an exceptional year and membership declined steeply but recent data indicates a bounce back.

Reflecting the above, there is evidence of a move away from the traditional village hall concept to a more community-based ethos of charities combining to provide a broader service; a kind of community hub with multi-purpose facilities that provide opportunities for local social activity, sports, arts and recreation, alongside providing access to services and civic participation.

2. Changes from the last Practice Note

More detailed guidance in respect of rental valuation added. Removal of the previous section regarding valuation using the Contractors Basis.

3. Ratepayer Discussions

No discussions have taken place with any representative body or their agents.

4. Valuation Scheme

4.1 Valuation on the Rentals method

Rental evidence is available and where identified full details should be sought. Utilising reliable renta

View the original news story