VOA areas and rent review
30 August 2025(2025 Aug: LinkedIn) – VOA areas and rent review. In many places, and often contrary to what is on-line, the VOA zoning methodology is not 6.1m/6.1m/6.1m (20’/20’/20′). but 4.57m/ 7.62m/ 6.1m (15’/25’/20′). Where VOA areas are relied on assuming 20/20/20 when they’re not is a common trip-up for rent review surveyors none the wiser. (Strictly, 20 ft = 6.096m)
Possibly common knowledge amongst rating surveyors, but perhaps less so for rent review surveyors, is the VOA zoning of shops in the London Borough of Lambeth.
In Wei Xialoli v Nicola Johnson (VO) 2025, a Lead Valuer in the National Valuation Unit of the VOA said that the VOA adopts two zoning methods in London Borough of Lambeth. For main shopping centre locations, three 6.1m (20′) zones and a remainder. In secondary locations, two zones A 4.57m, Zone B 7.62m. and a remainder.
For evidence of rental growth for adjusting to the avd, this case contains comment about VOA reliance on a Costar report, and why the Tribunal placed no weight on it. A similar observation about the usefulness or not of generalisation reports is in House of Fraser Ltd v Scottish Widows plc 2011.
In my experience of referrals, it is common for reports published by big firms of surveyors, market commentators, trade bodies, and local organisations. to be cited as evidence. Whether any weight would be placed by a third party on such so-called evidence depends upon the report author(s)’ methodology. Usually, the methodology is to be found somewhere in the report and, in my experience, rarely of any relevance to the premises in question.
Regarding the VOA’s two methods in LB Lambeth makes me wonder whether the VOA has two methods elsewhere. In principle, it doesn’t matter provided the methodology in each VOA Scheme is consistent, but how do we know it is?
For anyone inexperienced of market rent valuation for rent review, the VOA information on-line is misleading. What the VOA means by market rent and what rent review surveyors mean differ. I am acting for the landlord of a shop whose tenant’s representative has cited the Rateable Value as the market rent and asserting the VOA On line: “The Valuation Office Agency (VOA) uses a ‘rental’ method to value high street businesses like shops, hairdressers, betting shops and banks. The VOA gathers information about rents paid for shops and businesses. It analyses the information and works out a price per square metre. It also considers local conditions and things like unusual shops shapes, split levels and sales areas hidden by pillars. Zoning is used to apply the price per square metre to the property and get the rateable value. Each zone covers the width of the shop and usually has a depth of 6.1 metres. Zone A starts at the shop window. As you move further into the shop, each zone is half the value of the one before it. Spaces like store rooms or upstairs offices are valued but not as a zone.”
it gets worse, the VOA is on Youtube. https://lnkd.in/eGUAtxxW
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