Tribunal rules on valuation of advertising rights on bus shelters

Introduction

The Upper Tribunal (Lands Chamber) recently delivered a decision concerning the rateable value of advertising rights on bus shelters, a matter that had not been brought before the Tribunal for some time. The case involved two unopposed appeals by Valuation Officers against decisions made by the Valuation Tribunal for England (VTE) regarding bus shelters in Manchester and Sheffield.

Case Background

The first appeal, LC-2024-171, was brought by Ms Amanda Hitchings concerning a bus shelter in Manchester. The VTE had previously reduced the rateable value from £7,200 to £3,600. The second appeal, LC-2024-491, was brought by Ms Joanne Moore regarding a bus shelter in Sheffield, where the rateable value was reduced from £4,800 to £850. Both appeals were heard in January 2025, with Cain Ormondroyd representing the Valuation Officers.

Legal Framework

The appeals centred on the interpretation of Section 64 of the Local Government Finance Act 1988 and the Non-Domestic Rating (Miscellaneous Provisions) (No. 2) Regulations 1989. The key issue was the appropriate ratio for valuing digital versus static advertising displays on bus shelters.

Tribunal's Findings

The Tribunal considered evidence from Mr Chris Royle, an expert in the valuation of advertising hereditaments. The Tribunal noted that traditional valuation methods for static and scrolling displays were not directly applicable to digital displays due to their enhanced capabilities and market value.

Evidence and Analysis

Mr Royle presented evidence suggesting a 1:6 ratio for the value of static to digital advertising displays, based on industry practices and commercial agreements. However, the Tribunal found these agreements to have limited utility due to their broad scope and lack of specificity.

Decision

The Tribunal concluded that the Manchester bus shelter should have a rateable value of £7,200, applying a 6:1 ratio for digital displays. For the Sheffield bus shelter, the Tribunal set the rateable value at £2,950, reflecting a similar ratio for the digital component.

Implications

This decision sets a significant precedent for the valuation of digital advertising rights, acknowledging their increased value over static displays. The Tribunal's ruling provides guidance for future assessments of advertising hereditaments.

Conclusion

The Tribunal allowed both appeals, restoring the original rateable values as sought by the Valuation Officers. This case highlights the evolving nature of advertising valuations in response to technological advancements.

Learn More

For more information on valuation and rating law, see BeCivil's Contractor Law Guide.

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