This class is subject to the co-ordination procedures outlined in the relevant Practice Note (where appropriate) and generally by reference to Rating Manual Volume 2:1.
Outdoor advertising displays take many different forms, from the large hoarding panels adjoining busy main roads to the smaller illuminated panels at pavement level. The market for suitable sites or contracts is very competitive, with most of the key locations for larger sites (and local authority/shopping centre contracts) controlled by a relatively small number of national companies. These companies tend to specialise in certain aspects of the outdoor advertising market. Due to the innovative and competitive nature of the outdoor advertising industry, changes of company name, takeovers and mergers are relatively frequent.
Although improvements and innovations in technology and printing methods have a constant impact on the way outdoor advertising is displayed, in the main the size of the displays continue to be referred to against a traditional benchmark based on paper posters that are of a size that can be managed by a person on a ladder: these are referred to as “sheets”; the equivalent of four of these sheets is ordinarily produced in one piece, which is described as a “4-sheet”. Larger posters displays therefore comprise a number of "4-sheets" pasted together and so a hoarding of four "4-sheets", placed side by side, one above another, is known as a "16-sheet" and so on. The "48-sheet" is half the size of the "96 sheet" and there are examples of “192 sheet” equivalent sizes, being two 92 sheets side by side. In recent times, the predominant small poster format to emerge is the “6-sheet”, which is typically wall mounted, or on bus shelters, or freestanding; they feature in pedestrianised precincts, superstores and shopping centres. The “48 sheet” remains the predominant larger format display. “48 sheets” are typically displayed prominently above the street scene, for example up on an end wall, or gable-end. Appendix 1 of this Manual section and Appendix 11 of the VO Code of Measuring Practice for Rating Purposes provide the actual sizes.
Although “6-sheets” and “48-sheets” predominate, the constant improvements in printing and technology mentioned above enable more bespoke sizes to emerge. These tend to be displayed in higher value or one-off locations and do not conveniently fit into the traditional pattern of “sheet sizes”. For example large “squares” are used and huge “spectaculars” can cover the sides of multi storey buildings using one specially designed banner, often tethered with rope using eyelets in the banner itself.
During the late 19th and early 20th century, case law highlighted the difficulties encountered with this class of property when trying to determine rateable occupation - namely what constituted "occupation" and who should be regarded as "the occupier".
Various efforts were made to clarify the position but revisions to the statutory provisions often themselves raised fresh problems. Section 28 of the General Rate Act 1967 sought to consolidate these statutory provisions and although The General Rate Act 1967 itself is now repealed, much of the earlier terminology and provisions are still to be found in the current legislative framework.
Exploring the historic situation a little further, the use of “Advertising Station” as a heading to Section 28 of the GRA 1967 is indicative of the fact it has in fact a very broad meaning, that being land (including the right let out) used for the exhibition of advertisements. The term encompassed any hereditament considered at that time to be the equivalent of what we would describe today as “outdoor advertising”, being any right, station or land.
The term “Advertising Station” is seldom used in recent times; it has a broad application and therefore is capable of being misunderstood.
Under the heading “Advertising Station” in the GRA 1967, three states of assessment were possible:
a) Advertising Right
b) Statutory Advertising Station
c) Site Used for Advertising
It can therefore be seen that, although the term “advertising station” encompasses all outdoor advertising displays, the hereditament is treated as an advertising right, statutory advertising station or site used for advertising, depending on a combination of the legal situation and the facts on the ground.
It is hoped that this examination of the statutory background provides a useful backdrop and the similarities between the historic situation described above and the current provision will become apparent.
Finally, it should be noted that although the historic term “advertising station” is no longer commonly used to describe outdoor advertising displays by those working in the outdoor advertising industry, it is still found in leases and “estate terriers”, being used to describe rental income from advertising stations, whether the advertising station is (legally speaking) a “right let out” or “land”. Similarly, for rating purposes, the term “advertising station” is still employed in particular instances, which will be explored later in this section.
The statutes in force at the time of writing and applicable to the treatment of advertising displays are as follows:
As the statutory provisions relating to advertising appear in a number of different places it is hoped that the table below will provide some assistance. The full text of each excerpt is available at Appendix 2.
Part No: |
Brief details of the area covered by the legislation: |
Statutory Reference Applicable: |
5 |
Advertising – Types of hereditaments |
LGFA, 1988 - S. 64(1) and (2) & S. 65(8A) |
5.1.1 |
Rights – separate hereditaments |
LGFA, 1988 - S. 64(2) LGFA, 1988 - S. 64(11) |
5.1.2 |
Rights – Coming into existence |
SI 2005/859 & SI 2005/758 W63 - Para 15(1) and (3) |
5.1.3 |
Rights – Subsequent changes |
SI 2005/859 & SI 2005/758 W63 - Para 15(2) and (3) |
5.1.4 |
Rights – Cessation |
SI 2005/859 & SI 2005/758 W63 - Para 15(2) and (3) |
5.1.5 |
Rights – Rateable occupier |
LGFA, 1988 - S. 65(8) |
5.2 |
Stations – Land treated as occupied |
LGFA, 1988 - S. 65(8A) |
5.3 |
Advertising on rateable hereditaments |
SI 1989/2303 - Para 4 (1-4) |
11 |
Advertising and railways |
SI 2005/551 & 2005/422 Part 6 and Part 7 respectively |
12 |
Advertising and canals |
SI 2005/551 & 2005/422 – Part 16 (in each case) & SI 1989/2303 - Para 4(1) and (2) respectively |
The operation of the Alteration of Lists and Appeals Regulations can be located in Rating Manual Volume 2, and the operation of the Central List Regulations, for both England and Wales can be located in Rating Manual Volume 2, Section 12.
The LGFA, 1988 and associated regulations (see Paragraph 4 above) determine two ways in which an advertisement can be a separate hereditament: -
(i) when a right is granted permitting the use of land for advertising, (advertising right) or,
(ii) when land is used for advertising, or for the erection of an advertising structure (advertising station or land used for advertising).
However, the second determination above encompasses advertising stations and land used for advertising. Thus, the 1967 position is broadly replicated and three states are:
(1) Advertising Right: An advertising station where the right of exhibition of advertisements is “let out” or “reserved”.
(2) Land used as an Advertising Station: Land used as an “advertising station” for the exhibition of advertisements where that land is not used for any other purpose and is deemed to be in the occupation of the person permitting such use or, if he is not known, the owner where the land is otherwise occupied, or,
(3) Land Used for Advertising: where land used as an advertising station is being used for the exhibition of advertisements and is;
the assessment is made by application of the general principles of rateable occupation to that site.
It is most important to ensure that there is no confusion as to which event is being rated, as their legal provisions are quite distinct. The three states are examined in more detail below.
5.1.1 Separate Hereditaments
A separate hereditament is created by s.64(2) Local Government Finance Act 1988 in respect of a "right" to use any land for the purpose of exhibiting advertisements and;
a) the right is let out or reserved to any person other than the occupier of the land, or
b) where the land is not occupied for any other purpose, the right is let out or reserved to any person other than the owner of the land.
The usual definition of 'land' is extended to include any wall or other part of a building and any sign, hoarding, frame, post or other structure erected or to be erected on land.
Although for valuation purposes the extent of the sign or structure is important, it should be remembered that the hereditament is and will remain the right originally granted.
The distinction between a “Right let out” and a “Right reserved”
To be “let out”, a right is granted to another person from (or over) land; this is the normal position when a right is created. In some instances a right is created by reservation. For such a right to be “reserved”, the grantor retains the right, whilst he lets another interest in the land. An example of a reservation would be a landlord letting a corner shop, but reserving himself the right to place advertisements on the gable end. From a legal standpoint, a “let out” or “reservation” cannot be implied or presumed; it must be expressed.
This was considered in Peak (VO) v Henlys (Bournemouth), Ltd. (1959) LT 52 RIT 305, where an advertising sign was not separately rateable as an advertising right where it was found there was no express reservation or letting, despite an advertising sign being placed on the side of a block of flats by a subsidiary company of the landlord.
5.1.2 Alteration of Rating List - Coming into Existence
The hereditament ("advertising right") shall not be treated as coming into existence until the earlier of either:
a) the time at which any structure or sign is erected (after the right constituting the hereditament has been let out or reserved) to enable the right to be exercised, or
b) the time at which any advertisement is exhibited in carrying out the right.
5.1.3 Subsequent Changes to Advertising Rights
Once an advertising right has come into existence, the erection, dismantling or alteration of any structure or sign for enabling the advertising right to be exercised shall be treated:
(i) for the purposes of a VO alteration to a Rating List, as a matter affecting the physical enjoyment of the hereditament, and
(ii) for the purposes of proposals to alter a Rating List, as a material change of circumstances.
5.1.4 Cessation of Advertising Rights
The question may arise as to when an advertising right ceases to exist. In legal terms, unless it is extinguished by the agreement coming to an end, or by some other legal means, a right to advertise will still exist whether that right is exercised or not.
However, from a rating point of view, the erection, dismantling or alteration of any structure or sign has an impact on the hereditament and this leads potentially to deletion of the rating list assessment when the structure and/or advertisement are completely removed, even though the right may remain un-extinguished in the background with a rent passing.
Conversely, there are particular valuation considerations that arise at the cessation of an advertising right where the structure is not removed following the cessation of a right. If the right to advertise is extinguished, no rent is passing, and there is no new advertising being posted, then the assessment of the “advertising right” should be deleted from the rating list.
However, any continued advertising on the site might indicate either:
a) a possible “holding over” of the original right let out, in which case the assessment of the “advertising right” should remain in the rating list, or
b) a possible “run on” where no rent is passing, in which case the hereditament should remain in the list as an “advertising station”.
5.1.5 Rateable Occupier
The person for the time being entitled to a right as mentioned in 5.1.1 is to be treated as the rateable occupier; and the four tenets of rateable occupation need not, therefore, apply.
5.1.6 Description
Such hereditaments are properly described in the Rating List as "Advertising Right".
Land will be assessable as an "advertising station" where it is not otherwise occupied, no right has been "let out" or "reserved" and the land’s use (permanently or temporarily) is:
a) for the exhibition of advertisements; or
b) for the erection of a structure used for the exhibition of advertisements.
The hereditament should be treated as occupied by the person permitting it to be so used or, if that person cannot be ascertained, its owner; and the four tenets of rateable occupation need not, therefore, apply.
5.3.1 Advertisements Exhibited on Otherwise Occupied Rateable Hereditaments
Where a hereditament, rateably occupied for other purposes, is used either temporarily or permanently for the exhibition of advertisements, with or without any structure thereon, and no right is so "let out" or "reserved", then the assessment should ordinarily include the increased value of the land for advertising purposes. If the value of the advertisements is significant, it may warrant inclusion in the description in the rating list. Example descriptions of such would be "Shop and advertising station" and “Car park and advertising station”.
The four tenets of rateable occupation must be present.
[Note: When faced with the same circumstances, the only difference being that a right is "let out" or "reserved", then the assessment of the rateably occupied hereditament must not include the increased value of that right. It must be separately assessed as an “advertising right”.]
5.3.2 Advertisements Exhibited on Otherwise Occupied Non-Rateable Buildings
In certain exceptional circumstances, otherwise occupied buildings are used either temporarily or permanently for the exhibition of advertisements, with or without any structure thereon and no right is so "let out" or "reserved". An example of such buildings would be a block of flats. As there is no assessment to increase to reflect the value of the advertisement, a separate assessment will be made. Example descriptions of such would be "Land Used For Advertising”.
The four tenets of rateable occupation must be present.
5.3.3 Other Advertising Sites and Land Used for Advertising
There may be exceptional situations where land used for the exhibition of advertisements is not a right let out or reserved (described at 5.1 above), and, despite being otherwise occupied, none of the aforementioned situations (described at 5.2 and 5.3.1 and 5.3.2 above) apply. Such exceptional situations will only be resolved where the full details of occupation and ownership, both legal and factual, are fully researched.
In summary, If the fully researched facts of a particular situation do not result in a hereditament described at 5.1, 5.2, 5.3.1 and 5.3.2, above, then any assessment made in respect of such site or land used for the exhibition or display of advertisements should be ascertained by applying the general principles of rateable occupation.
The four tenets of rateable occupation must be present.
It should be possible to accurately identify the hereditament once the legal circumstances have been ascertained. Therefore a concerted attempt must be made to ascertain details of occupation, ownership and all interest in, and arising from, the land. Reasonable steps should be taken to ascertain the facts; forms of return should be used and enquiries made as appropriate.
However, details may not be forthcoming for a variety of reasons. In such circumstances, it is recommended that certain reasonable assumptions be made. Whilst clearly inferior to having all the facts at the outset, practical assumptions based on observations made during inspections are detailed in paragraph 13 below.
Should uncertainty regarding the hereditament persist despite the Valuation Officer’s best endeavours to establish the legal position, and neither do the facts on the ground assist in this regard, it is considered reasonable to describe and treat the hereditament as an “advertising right” in the first instance.
Where the same goods as are sold by a particular trader are advertised by posters, painted metal, electric signs, hanging signs, “A” frames etc attached to or placed in front of the building concerned, most of these advertisements are likely to be of minimal value, especially if they are commensurate or “in keeping” with that expected at that particular business property (for example a newsagent would be expected to have an advertisement displayed on his sunshade awning).
However, where the advertisement appears out of keeping or excessive, its value being over and above that expected to be derived from a commensurate display, it should be taken into account when making the assessment of the hereditament.
If a Form Of Return (FOR) discloses the receipt of a rent for advertising, the VO should consider making such further enquiries, either informally or serving a supplementary FOR, as would enable a decision to be made as to whether the advertising warrants separate assessment as a right let out from land.
Where buildings are let out in parts, it may be that the occupier of a part displays an advertisement on his own or some other part of the building. In cases where such signs are "directional" (i.e. to assist in locating an occupation) or for identification purposes rather than for advertising, they should have no value placed upon them.
However, if, by virtue of their size, prominence or obvious advertising value they are clearly advertisements (and therefore distinguishable from directional and identification signs), they should be assessed as rights or stations as appropriate.
Normal advertising displays, such as 48 sheets, erected around a building site are likely to be rights let out and should be assessed. However, temporary signs to indicate their presence erected by building contractors on land where they are engaged on constructional or repair work may be disregarded, as may unauthorised fly posting.
For the purpose of this paragraph, “small format” advertising displays are the size of a 4-sheet or 6-sheet. Location maps and timetables clearly in the occupation of the bus operator should not be assessed. The relevant revaluation practice notes tend to provide valuation advice and guidance in respect of small format advertising displays and these should be referred to as necessary.
All advertising on bus shelters should be assessed, with the value of the structure usually being based on the cost of providing either the bus shelter itself (where the hoarding and bus shelter are dependent for support on one another) or where the display is capable of standing with or without the shelter “attached”, the cost of providing such a freestanding structure.
A typical agreement, usually in the form of a licence, for such displays as between the advertising company and a local authority will usually include terms that the former shall:
and that the Local Authority shall:
It is unusual for any rent to pass on the basis that the council presumably considers that the total value of the provided, and their ongoing maintenance, offsets the revenue that could otherwise have been collected by letting out the rights. Sometimes a few additional shelters are provided where no advertising is included and occasionally other facilities such as automatic toilets may be provided and maintained as part of the agreement.
Small Format advertising on lampposts should be assessed, with the value of the structure usually being based on the cost of providing a freestanding structure capable of making that display at the height at which it is made.
Care should be taken when comparing with bus shelters. Although a similar size of display, the visual impact, height from the ground and costs of structure are likely to mean a difference in rateable value to those of bus shelters.
For the purpose of this paragraph, “small format” advertising displays are the size of a 4-sheet or 6-sheet. Very small “plaques” or “name plates” in a flowerbed in a roundabout do not fall into this category and instead are dealt with in paragraph 9 below.
Arrangements for the use of roundabouts as advertising are ordinarily entered into between the local authority and the advertising companies, both parties being subject to similar rights and responsibilities as outlined in paragraph 7 above, depending on the nature of the advertisements.
The roundabouts used for such displays are often referred to “sponsored roundabouts”. A feature of the arrangement in respect of “sponsored roundabouts” is that the money raised appears to be targeted directly into the improvement of the amenity value of the roundabouts in the locality. In this way, local companies can be seen to play a part in improving their local area, benefiting from the advertising as a result.
For the purpose of this paragraph, “very small advertising displays” are those being less than half the size of a 4-sheet.
Very small displays exhibiting advertisements are sometimes placed on street furniture and other features on the highway. Examples include parking meters, roundabouts, street signs, lampposts, bus stops, traffic light poles, litter bins and utilities cabinets.
It is considered highly unlikely that individual assessments will arise in such instances. However there may be a case for assessment if the rental value of very small format advertising displays is not de-minimis. Similarly, assessment may be appropriate by agglomerating the values of very small displays. Care should be taken before taking the latter action and facts must be carefully established; the displays must stem from the same right, or be on the same piece of land (if no right is let out): it is therefore recommended that specialist advice be sought using the established protocols before doing so.
Agreements may exist between an authority and advertising company for the co-ordinated use of certain multiple items of “street furniture” for the display of very small format advertisements. It is expected in such instances that both parties be subject to similar rights and responsibilities as outlined in paragraph 7 above, depending on the nature of the advertisements.
Although unlikely that individual assessments will arise in such instances, should a valuation officer wish to proceed to assess very small displays of this nature, full details of the arrangements between the advertising company and “authorising authority” must be established before proceeding. Caseworkers should also seek technical advice from CEO Rating using current protocols.
Clearly unauthorised campaigns of advertising, whether seemingly co-ordinated or not, such as plastic coated A4 sheets held on to traffic light poles by plastic ties, should not be assessed as they are effectively unauthorised fly posting.
Where an advertising display on a phone box or kiosk is clearly let out by the telephone company to an advertising contractor, the display should be assessed as an advertising right. This applies whether the kiosk is on the highway or not.
Where the display is advertising services provided exclusively by the company concerned, it is probably not let out and therefore should not be assessed separately, its value should be included in the assessment of the phone box or where a company is a hereditament in the central list, included in that assessment.
For further information about the valuation of telephone kiosks and the like for rating purposes, refer to Rating Manual Volume 5, Section 1035.
The position historically in respect of those railway hereditaments shown in Central Lists is that their advertising sites have been included in the valuations, and until recently no agreements were identified which have the effect of creating any rateable occupier other than the statutory operator.
Railtrack plc was created on 1st April 1994 and all land used for railway purposes was transferred to it from the British Railways Board (B.R.B.). Surplus property not required for Railtrack PLC’s purposes continued to be held by British Railways Board. B.R.B. ceased to be a “designated person” in the 2000 Central List Regulations and their occupations are now individually assessed in the local lists with effect from 1 April 2000.
Following a period during which it was in administration, Railtrack PLC was renamed Network Rail Infrastructure Limited, and continues to be a designated person for the purposes of the 2000 and 2005 Rating Lists.
For the avoidance of doubt, advertising displays should be placed in local rating lists where they are either let out from land or stationed on land that is not in the occupation of a person designated to appear in Central Lists.
Included in the Central Rating List for Network Rail Infrastructure Limited are those advertising sites managed by CBS or Titan Outdoor under their central management agreements that are situated on land associated with operational railways, which is being used wholly or mainly for the purposes of the carriage of goods or passengers by rail. As a result no separate assessment in Local Rating Lists falls to be made for such sites. It is understood that there may also be a number of similar agreements with other poster companies and, where situated on land occupied by for Network Rail Infrastructure Limited, these should be treated in the same way.
For the purposes of dealing with advertising displays, there is no distinction between “operational” and “non-operational” railway land, and the expression “operational land” should not be cited as a reason to distinguish between the way advertising on railway land is dealt with. Instead, the distinction is between;
a) land that is being used wholly or mainly for the purposes of the carriage of goods or passengers by rail, that is in the occupation of Network Rail Infrastructure Ltd, and
b) land that is not being used wholly or mainly for the purposes of the carriage of goods or passengers by rail, (or “defunct” railway land) that is in the occupation of BRB (Residuary) Ltd.
For the avoidance of doubt, once it is established that National Rail Infrastructure Ltd occupies the railway land in question, that is enough to satisfy the Central Valuation Officer that any advertising sites managed by them are to be placed in their Central List assessment.
Where land is not being used wholly or mainly for the purposes of the carriage of goods or passengers by rail, or is defunct railway property occupied by BRB (Residuary) Ltd, then the advertisements let out from that land would be expected to be assessed in accordance with the ordinary law of rating.
Once the facts are established as detailed above, the way to deal with advertising on railway land should become clearer. However, details of any disputes over such assessments should be submitted to the Technical Adviser. Current protocols for seeking further advice should be followed as considered necessary.
It is understood that no advertisements are situated on land that is not being used for the relevant purposes.
For further consideration of advertising and railways, refer to Rating Manual Vol. 2 section 12 and the relevant practice note, where available, which will ordinarily have a paragraph on advertisement sites incorporated therein.
It is understood that all advertisements displayed by The British Waterways Board (BWB) on canal hereditaments are used for purposes ancillary to the provision of facilities for traffic by inland waterways or in harbours and as such are thus included in the valuations. Any other advertising right displayed on canal premises should be assessed and entered in the appropriate Local Rating List. Details of any disputed assessment on the grounds that a right is included in a BWB valuation should be submitted to the Technical Adviser.
When making an inspection of an advertising display, the survey requirements should include:-
The “address” of the site should be formulated using the relevant RSA addressing protocols.
Include the name of the advertising contractor and the site number (both of which are often stated on the edge of the display panel).
A brief description of the site should be noted, to include details of visibility from passing traffic (i.e. pedestrian, train or vehicular). This is referred to as “opportunity to see” (OTS). The position of the site in relation to passing traffic is a critical consideration, as is the “attitude” of the display: is it facing the traffic or angled to some degree and if so, by how much.
The size and type of display should be noted; together with particular display features such as scrolling, illumination, moving image etc. Some traditional poster sizes are shown in Appendix 1 of this Rating Manual section.
The type of structure should be noted; it may be freestanding or attached to wall or similar support. The method by which the structure is attached should also be noted. For example; a 48 sheet timber frame bolted to a wall, or a freestanding 96-sheet on steel frame set in concrete footings.
Appendix 11 of the VOA Code of Measuring Practice for Rating Purposes deals with this class, and some of the various poster sizes are shown in Appendix 1 of this Rating Manual section.
Refer to the VOA’s Rating Cost Guide for the appropriate list year. Where available and applicable, practice notes attached to this section of the manual may consider structure costs.
Photographs of advertising displays are of great assistance and may be taken from safe vantage points, showing different views of the advertisement.
Photographs should not be taken where the use of the camera (or similar device) will place the officer or members of the public in danger, for example from the middle of a busy road or highway. Similarly, photographs must not be taken whilst driving any kind of vehicle, neither should they involve leaning out of windows and sunroofs of moving vehicles etc.
When inspecting advertising displays, without knowledge of the legal “backdrop”, together with a knowledge of who is the owner or occupier (as appropriate), it is often very difficult to determine “on the ground” whether there is a “right”, “station” or merely “lands”. In most cases this can only be verified beyond doubt once full details of the legal situation have been ascertained.
However, until the full legal picture is ascertained, the following provides a brief guide to assist in making a determination based solely on what is seen “on the ground”.
The display is more likely to be an advertising right when:
Or, alternatively:
The display is more likely to be an Advertising Station or Land Used for Advertising when:
Or, alternatively:
Or, alternatively:
Certain facts may be verified or corroborated by asking questions of the occupier of the land on which the display is being made, if there is such a person. However, it must be reiterated that the above can only provide an answer based on a “balance of probabilities”.
It becomes even more difficult when the land appears not to be occupied for any other purpose and is otherwise a separate site.
Full notes must be made of the position on the ground to create the best opportunity to make the correct assessment once further and better particulars regarding the legal position are verified, which can be ordinarily be achieved by serving a Form of Return.
It is very important to record the date of inspection. Advertising displays can be erected and dismantled with relative ease and planning permission is sometimes applied for retrospectively. This means that the date of inspection is a very important snapshot of the position on the ground at a particular point in time.
The tenets or rateable occupation do not apply to advertising rights, which can have in an entry in the rating list for as little as one day, the importance of recording the situation at a particular point in time cannot be understated.
Valuation will be on the rental method but care needs to be exercised when using the available evidence to ascertain whether or not the amount paid takes into account the value of any structure or sign. In assessing the RV it is not relevant that a structure or sign was provided by the occupier or was provided after a right was let out or reserved, it still falls to be valued.
Market evidence of rental values is usually widely available, especially for larger format advertising displays. Care must be taken in deriving evidence from comparables because as location is the key factor, rental values will vary considerably from site to site.
There is rental evidence available in respect of smaller format displays, but there are also many instances where there is no rent passing, such as advertising displays on bus shelters already mentioned above. In such circumstances it is desirable to devise a valuation scheme; refer to the relevant practice note for the appropriate list year, as attached to this section to see if a centrally formulated scheme is available that may assist.
Where a right falls to be separately assessed from land no account is to be taken of the value or increased value of that land by reason of its use for exhibiting advertisements: this provision ensures that the value of the right is not the subject of duplicate assessment.
In arriving at the rental value care is necessary in considering the position of the hoarding relative to passing motorists and pedestrians, its visibility, the speed and volume of traffic passing the site, as well as the size and nature of the population of the area in which the hoarding is located.
A visible and well-located hoarding alongside a busy commuter route will be seen by large numbers of motorists, especially in urban areas where traffic is slow moving or stationary (road junctions for example) where there is time for the message to be absorbed.
Sites parallel to the road are likely to be less valuable than those which are angled; and sites visible to traffic from both directions are more valuable than sites which can only be seen from one direction; sites near traffic lights where the flow of traffic is interrupted will be more valuable. If the location is such that it is likely to be seen by a larger proportion of people in socio-economic groups A and B, it may well command a higher rent.
The types of display operators envisage placing on the site typically indicate the value of the site to the advertiser. It follows that the rents agreed in respect of advertising rights (or land used) will take into account the fact that the intended use is a multiple display. Such displays include scrollers, ultravisions and digital displays. See Appendix 1 for further details regarding the types of display.
In general, the value of the right increases in direct proportion to the number of “faces” displayed over a reasonable period of time. For example, a right displayed using a 3x ultravision or scroller would be 3x the value of a static sheet.
Similarly, a “digital” display has a theoretically large capacity for displaying advertisements, however in practice an advertising company sells up to the equivalent of six “faces” per digital display. Therefore, where electronic or digital formats are used, it is anticipated that the valuation of the right be enhanced by 6x as a rule of thumb.
It should be noted that Public Service Broadcast Screens are situated in certain town centres. Although these often have some elements of sponsorship and advertisement, they are not advertising displays and are not treated as advertisements for rating purposes. See Rating Manual, Volume 5: Section 628 for further details about Public Service Broadcast Screens.
Where suitable evidence of similar locations is not available, particularly where a new site is being evaluated, it should be remembered that, ultimately, the rental value of the site derives from the revenue received by the hoarding company from advertisers.
When determining the effective date of any new entry, alteration or deletion, care must be taken to fix an effective date that is as correct as possible, subject to the powers contained in the appropriate effective date regulations. However, due to the nature of the regulatory framework that surrounds outdoor advertising, it is important to exercise caution and apply an effective date that is based on known facts rather than assumptions.
16.1.1 New Entries
Unless the billing authority has provided a date that appears to be reasonable, in which case it should be used, the date of inspection should be taken as the effective date of the new entry.
If the advertising company disputes the effective date (whether such a date is provided by the billing authority or used by the valuation officer), the alleged date of installation should be provided in writing, together with copies of the relevant installation paperwork provided and the name and contact details of the installer (whether a subcontractor or employee).
16.1.2 Alterations
Unless the billing authority has provided a date that appears to be reasonable, in which case it should be used, the date of inspection should be taken as the effective date of any alteration.
If the advertising company disputes the effective date (whether such a date is provided by the billing authority or used by the valuation officer), the alleged date of alteration should be provided in writing, together with copies of the relevant paperwork provided and the name and contact details of the person making the alteration (whether a subcontractor or employee).
16.1.3 Deletions
Assuming that at that date no evidence of the structure or advertisement remains, unless the billing authority has provided a date that appears to be reasonable, in which case it should be used, the date of inspection should be taken as the effective date of the deletion
If the advertising company disputes the effective date (whether such a date is provided by the billing authority or used by the valuation officer), the alleged date of installation, alteration or deletion should be provided in writing, together with copies of the relevant paperwork and the name and contact details of the person who erected, modified or removed the structure (whether a subcontractor or employee).
As already mentioned in paragraph 5 above, where uncertainty exists, it is reasonable to presume, describe and treat the hereditament as an “advertising right” in the first instance.
Where it becomes clear from the subsequently ascertained legal position that the initial description in a rating list is incorrect, its description should be changed.
Any such change to the description in a rating list (from right to station to land used etc) is unlikely affect the valuation of the hereditament, or the validity of the assessment. However, if what was initially considered a right turns out in fact and law to be land used for advertising, rateable occupation becomes a fundamental consideration in relation to permanence (see paragraph 5 above).
In any case where there is doubt about the legal situation, an FOR must be issued to clarify the position and other reasonable enquiries made. If clarification is required because either “permanence” is an issue, or there is some other pertinent issue that has arisen, the VOs should submit full details to the Technical Advisor for advice.
Advertising display hoardings are subject to modernisation and innovation. These may feature in Appendix 1 or the relevant practice note, where available. In any case of doubt, and in particular where new types of advertising display have been identified, VOs should follow the standard protocols for seeking advice, and where appropriate submit full details to the Technical Adviser for advice.
Click here for Appendix 1.