Physical changes within a locality may have an impact on the rateable value of property. The rateable value is the Valuation Office Agency assessment of the open market rental value of your property and is used by local councils to calculate business rates.
What is a “material change of circumstances”?
If there are physical changes to property or within the locality of a property, these may have an impact on the rateable value.
As a general rule a temporary MCC would need to last at least 6 months before the VCA would consider it having an impact on the rateable value. This period can be shorter if the impact of the specific MCC is very severe.
What is meant by ‘locality’?
The definition of locality will depend on the nature of the change and the type of property occupied. Usually, the locality is the immediate area around the property however this can vary from case to case. For example, a suburban High Street in a city is often treated as a locality. Road works in the city centre would not be considered an MCC but road works on that High Street could qualify. However, if the change had been the opening of a competing new shopping development on the outskirts of town it is possible that a number of properties in both the suburban High Street and the city centre will be affected and the definition of ‘locality’ would reflect that.