Statutory Valuations (3rd ed.)

Citation

Deddis, B. (1998), "Statutory Valuations (3rd ed.)", Journal of Property Valuation and Investment, Vol. 16 No. 1. https://doi.org/10.1108/jpvi.1998.11216aae.003

Statutory Valuations (3rd ed.)

Statutory Valuations (3rd ed.)

Andrew Baum and Gary Sams

International Thomson Business Press,London,1997,262 pp.,ISBN 1-86152-195-2,£18.99

This third edition of Statutory Valuations is a timely update of an established standard reference text for Estate Management students. Over the seven years since the second edition appeared, significant new Acts have been placed on Statute and new case decisions have added to the body of knowledge. The authors continue to target students and practising valuers as the end users of the text. As with earlier editions, the objectives set have been realised and the limitations of the text clearly identified.

The primary objective is to interpret the legal framework and recommend specific approaches that facilitate the resolution of valuation problems. Numerous valuation examples are utilised and form an integral part of the text. The textbook is not concerned with basic valuation methods. The authors assume readers have a working knowledge of valuation techniques.

The secondary objective is to update readers, taking account of the changes in legislation and case law. Consequently, where the effects of changes have resulted in significant impacts upon property valuation, chapters have been thoroughly revised, or rewritten and redundant material expunged. The glossaries of Cases and Statutes, have been substantially revised (to include 57 new cases, 8 new statutory provisions, and the removal of cases and statutes now obsolete).

The divisional structure established in the earlier editions is sensibly retained. In Part I, the concern is the legislation relating to and affecting the valuation of commercial and residential property. Significant changes have occurred in both of these important sectors of the property market. The extent of the changes is borne out by the major revisions and re-writes to Chapters 1, 2, 3, and a completely new Chapter 4. Part II deals with compulsory purchase, planning and the valuation of interests in a variety of situations. Chapters 5, 6, 7 and 8 (formerly 4, 5, 6 and 7) are revised to reflect the consolidation in legislation (the Town and Country Planning Act 1990) and the compensation changes arising from the Planning and Compensation Act 1991. The abolition of site value compensation has rendered the material in Chapter 8 of the previous editions no longer relevant and consequently this chapter has been deleted. Chapter 9 has been updated to account for all the changes (such as the abolition of the unexpended balance of established development value) arising from the 1991 Planning and Compensation Act.

Looking at the chapters in more detail, Chapter 1 deals with introductory matters, including the valuer's role, relevant definitions, landlord and tenant relationships and the impact of the new Landlord and Tenants Acts upon the valuation process (with useful valuation examples). Some new valuation examples appear throughout the chapter to demonstrate changes that have occurred (the effect on rent of reverse premiums for example). In the valuation examples it is an acceptable expediency for the authors to use simplified figures. Unfortunately, many of the examples do not exhibit value or data currency. Nevertheless the unrevised examples continue to provide a useful insight into the valuation process. Case references are appropriately utilised within the context of both the discussion and associated examples. Residential property is dealt with in Chapters 2, 3 and 4 with the focus being predominantly within the private sector. Chapter 2 is concerned with the Rent Acts and deals succinctly with the legislative framework, definitional treatment of the various forms of tenancy and the law relating to tenancies. (Valuation examples are included where relevant). The law of Landlord and Tenant is common to all types of property and changes within the law are clarified. Without going into detail, some relevant elements concerning public sector housing (for example introductory tenancies) are dealt with in summary. Chapters 3 and 4 consider leasehold reform for houses and for flats respectively. The substantive legislative changes (The Leasehold Reform Housing and Urban Development Act of 1993 and The Housing Act 1996) are considered in a revised Chapter 3 and new Chapter 4. Given that the law directly affects valuation work, the authors set out clearly the valuation rules applicable to the enfranchisement of both houses and flats. A number of apposite examples together with relevant case law references appear within the text. Contentions are not avoided and a balanced exposition is delivered. The enfranchisement valuation process under original and revised bases is clear and concise. Decisions made in the Lands Tribunal are recorded with appropriate commentary. Concerning changes arising from the Housing Act 1996, the impact on the valuation of flats is well explained.

As previously, the introduction for Part II forms Chapter 5 (formerly 4) and has been largely unaltered. Similarly, as with previous editions, the basic principles and rules of compensation form the material substance of Chapter 6, which has been revised appropriately. Changes in these chapters are largely of a minor revisionary nature. In a textual context some comment on Housing Act acquisitions, is included. A number of new and updated valuation examples have also been included. In Chapters 7 and 8 (formerly 6 and 7) the meaning and mechanics of severance, injurious affection and disturbance elements within compensation claims are revisited. Examples are updated in metric terms, but the values within the example are dated. Finally Chapter 9, a not insignificant rewrite, considers changes in Planning legislation. Relevant material, (for example, purchase notices, revocation and modification of permission), is considered at a general level and illustrated with appropriate valuations.

In conclusion, this is a useful reissue of a widely utilised basic text for students (primarily, I suspect, at undergraduate level). From the practitioner's viewpoint the revised textbook may already be dated. The valuation impact, resulting from changes in legislation or case decisions, is so important that most valuers will already have updated their reference material (of necessity). Furthermore there is a need for the continual updating of reference material. Nevertheless, a niche market may exist among newcomers to the professional ranks, particularly those seeking to become more specialist. In some respects however the textbook falls short of an in-depth treatment of some contentious areas. Over the past decade, the basis for the payment of compensation has been the subject of some criticism. The Royal Institution of Chartered Surveyors (RICS), although not the only professional body or group to suggest revisions, has targeted areas where problems exist. To date, some of the RICS proposals have resulted in legislative action. Other issues have not yet been tackled. This revised edition does not investigate contentious areas, nor incorporate some of the new thinking. Clearly some original research, particularly concerning compulsory acquisition and compensation, is long overdue.

Bill Deddis School of the Built Environment, University of Ulster