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LRC INFORMATION
BOND STREET RATING DECISION
December 2003.
A total of 20 retailers on Bond Street presented evidence to the Central London Valuation Tribunal claiming that following the events of 11 September 2001 there was a material change of circumstance, by virtue of a substantial fall in the numbers of visitors to central London and that the number of visitors to central London had not yet recovered to the levels existing at the date of compilation of the 2000 rating list.
The Tribunal accepted footfall was reduced sufficiently to be physically manifest but concluded that the footfall effect of 9/11 in tourist numbers was only observable from 11 September 2001 to 31 December 2001.
The Tribunal considered the valuation effects of the reduction in visitor numbers, for the period 11 September 2001 to 31 December 2001. Evidence was taken of a lease renewal due on 13 September 2001 that was delayed until 25 December 2001. This amounted to a 50% reduction in rent for the period.
Although the actual case is not an open market one the Tribunal considered that if a hypothetical landlord and tenant had been negotiating the lease of a hereditament vacant and to let shortly after 9/11, the landlord would have offered the tenant temporary inducement to achieve a deal at this time of great uncertainty.
The Tribunal accepted the property market evidence as a guide to determine a 50% reduction in rateable value, from 11 September 2001 to the year-end. On an annual basis this would equate to a 15% reduction but the tribunal considered it appropriate to apply the whole of the reduction to this short period after 9/11. This temporary allowance was determined for all proposals before the Tribunal with a material date up to and including 31 December 2001.
Additionally the Valuation Officer is ordered to reinstate the rateable values appertaining in the rating list prior to 11 September 2001, with effect from 1 January 2002.
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