Valuation: Principles into Practice
Sixth edition
Edited by R E H Hayward BSc (Est Man) Lond, FRICS
2008
First published 1980 by Estates Gazette
Second edition 1984
Third edition 1998
Fourth edition 1992
Fifth edition 2000
Sixth edition 2008
Published 2014 by Routledge
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Routledge is an imprint of the Taylor & Francis Group, an informa business
For details as to copyright see end of each chapter
All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.
Notices
Knowledge and best practice in this field are constantly changing. As new research and experience broaden our understanding, changes in research methods, professional practices, or medical treatment may become necessary.
To the fullest extent of the law, neither the Publisher nor the authors, contributors, or editors, assume any liability for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions, or ideas contained in the material herein.
ISBN 13: 978-0-7282-0524-6 (pbk)
Cover design by Rebecca Caro
Typeset in Palatino 10/12 by Amy Boyle, Rochester
Contents and Authors
Charles Cowap MBA, MRICS, FAAV, MRAC, DipREM (Gold Medal), FHEA
Principal Lecturer in Land Management and Director of Work Based Learning, Harper Adams University College, Shropshire
Eric F Shapiro BSc, FRICS, IRRV, FCIArb
Chesterton Global Ltd, 913, Swiss Terrace, Finchley Road, London NW6 4RR
Prof. C Charles Hubbard BSc, FRICS
Edmund Kirby & Sons, Liverpool L3 9NY
Prof. Del W Williams BA, MCD, LLB, FRICS, MRTPI, ACIArb
R W Solutions Ltd, Liverpool
John K Hayward BSc, FRICS
Aldwych Asset Management Ltd, Siddington, Cirencester GL7 6HL
LM Grenville-Mathers BSc, MBA, FRICS
Mathers and Showham, London W1X 0DT
AA Taylor FRICS
Donaldsons, London W1B 5NL
Christopher JJ Osmond MA, FRICS
Cushman & Wakefield, 16 Old Bond Street, London W1S 4PS
Crispin P Freeman FCA, CTA (Fellow)
Perkins Copeland, Eastbourne BN21 4RA
Hilary Allan AIIT
European VAT Services Ltd, Lymington SO41 0PP
Chris Hart FRICS
Hart Consulting, Wellesbourne, Warwickshire CV35 9RB
Keith Murray FRICS
Keith Murray Associates, Bushey Heath, Herts, WD23 1EE
Richard EH Hayward BSc (Est Man) Lond, FRICS
Litlington, Sussex BN26 5RA
Michael Jervis MRICS, FIQ
Star Energy Ltd, 1516 Buckingham Street, London WC2N 6DU
PR Deakin, FRICS, C Eng, MIMM, FIQ, FRPS
Matthews & Son, London WC1E 6AB
MR Jayne MA, FRICS
Principal Lecturer, Nottingham Trent University, Nottingham NG1 4BU
Nigel Dubben MSc, BSc (Econ), MRICS
Postgraduate Course Director, School of Surveying, Kingston University, Surrey
Simon R Galway BSc, MRICS, MEI, MIMI
CB Richard Ellis, London EC4M 7HP
Appendix I Example of an Arbitration Award
Appendix II Example of an Independent Expert Determination
Terry Corns FRICS, MCIArb
Lambert Smith Hampton, Birmingham B3 2TA
Chris Thorne FRICS, FCIArb
Atisreal, Bristol BS1 6NP
Stephen Crocker BSc, FRICS
Head of Leisure and Licensed Property Valuation, Chief Executives Office, Valuation Office Agency
B Scott MRICS
Partner, Gerald Eve & Co, London W1G OJB
Prof. Sarah L Sayce BSc, PhD, FRICS, IRRV
Head of School of Surveying, with
Anna Sundberg BSc
School of Surveying, Kingston University KT1 2EE
Geoffrey Laird Jackson FRICS
Plas Newydd, Llanfair DC, Ruthin, Denbighshire LL15 2EP
Arthur Broadhurst FRICS
Thornburn & Co Ltd, Manchester M3 2GP
Philip CL Hall BSc (Hons); BTP, DMS, MRTPI, MCMI, MRICS
Director, GLP Taylors
John Murdoch LLB, Hon RICS
Emeritus Professor of Law, University of Reading RG6 6AH
This is the first edition without Bill Rees at the helm. His death in January 2004 left a hole that cannot be filled. The idea for this book was his, he saw to its publication through the first five editions. The Prefaces to the first and fifth editions are reproduced here as they show exactly what his intentions and wishes were, and I hope that this edition is faithful to those.
In 1978 Bill sought out authors to write specialist chapters for Principles . He wanted, and achieved, a balance of practitioners and academics a meeting of town and gown which remains one of the books strengths. From his invitation to contribute to the book came a friendship that lasted until the day Bill died. His request that I lend a hand with editing the fifth, with a view to taking over thereafter, came out of the blue, and was not a little daunting, coming as it did from the owner of one of the finest intellects in the surveying profession.
Working with Bill was, simply put, sheer delight and enormous fun. We shared the view that we did not have to restrict ourselves to what was necessary to get the book published on time, but it provided an unimpeachable reason to meet for long lunches at The Sign of the Pink Moggy to swap bundles of documents and eat those things which our wives and doctors thought we should not. The Pink Moggy is known to some, I believe, as the Red Lion at Turners Hill.
So to the sixth edition. It is inevitable that in the seven years since the previous edition was published some of those who contributed will have retired. Of those who have put down their pens several have written for all five of the earlier ones. They deserve long-service awards. That said, fourteen of those who contributed to the fifth have written for the sixth.
Sadly, DC Elgar, the author two chapters in the fifth, and earlier, editions died before that edition was published. My thanks go to his son and daughter, John and Caroline, for agreeing that their fathers work could be used in this edition in whatever way the new authors chose. The other contributors who have retired have almost without exception made their work available to their successors, although in the event these chapters have all been completely re-written from scratch. I am grateful to them all for their generosity in making their work available, for their help in the past and, particularly, their active participation in helping me to find their successors.
So, I record a grateful parting Thank You to Richard Baldwin, RE Clark, Charles Goodwyn, John Ratcliffe, Bill Taylor, Ron Westbrook and Brendan Williams. At the same time, a welcome to those who have taken over from them: Charles Cowap, Stephen Crocker, Nigel Dubben, Geoffrey Jackson, John Murdoch, Keith Murray and Chris Thorne; to Simon Galway who has taken responsibility for , with the continuing assistance of Peter Squire, and to Christoper Hart who has added a substantial contribution to the tax chapter. Each is an expert in his field. In expressing my thanks to the authors it is appropriate that I explain that their opinions are confined to their own chapters, and that I should disclaim all responsibility for the views expressed.