How can VOA overvalue individual house and increase tax band?

A question about : How can VOA overvalue individual house and increase tax band?

Hi
We moved house last September to a detached very individual style property. The property had an Improvement marker on it which I was aware of. I did a lot of research before hand and found the last improvements had been done in 1992 and the mortgage valuation and same purchase price where comfortably (Ј40,000) inside the current Council tax band envelope. All the neighbours’ houses are all different sizes, designs and lower bands.
We received a letter from the VOA in October informing us that they where reviewing our banding and that they would contact us within one month if there was to be any change. We did not receive any further communication from the VOA so thought it was unchanged. But we have just received a Council tax demand for the next highest tax band.
I phoned the VOA and asked them to explain how they had decided my property should be liable for a higher tax band. They said that because it had an improvement marker on it, then it would have been automatically increased. I explained to them that using the Nationwide House Price calculator my property value was at least Ј40,000 less than the lowest level of this new band. They said that they don’t go by property value but had increased it because it had improvements done in 1992 and if I had any complaint then I would have to appeal which I obviously do.
I thought Taxes had to be based on a known value. How can the VOA just decide my property should pay more tax even though it has not increased in value relative to market? The property may well have had improvements done in 1992 that increased its appeal and value then. But now the house is dated and requires expensive repairs and modernization just to make it comfortable by current standards. The last owners enjoyed any benefits of their improvements and the lower tax banding.
Concerning the appeal there are no other similar houses I can use as a direct comparison for my appeal. Also what’s to stop the VOA approaching similar sized houses in my area and using my property banding as an excuse to increase theirs.
Thank you.

Best answers:

• 1. If it was a 1992 improvement, it should have already been reflected in the CT band, as that is based on the state of the property as at 1 Apr 1993.
  2. VOA should inspect the property before increasing band. However there is a possibility they had inspected it prior to your ownership or obtained details from plans submitted to the council.
  3. The VOA should have sent you notification of the increased band, there is a 6 month time limit on an appeal against this, which starts from the date of this notification.
  4. As CT bands are based on 1991 values, you cannot use 2015 standards to judge how outdated the fixtures and fittings are.
  5. The need for repair has to be ignored for CT purposes. Every single dwelling is valued as if it were in good repair.
  6. The VOA can review a CT band at any time, so it can increase the bands of other dwellings local to you. However it would be unwise to do this based on the band of a dwelling under appeal, or even still within the appeal time limit and it would be unusual for the VOA to increase a band without good reason.
  7. As there are apparently no similar houses nearby it would interesting to see the evidence the VOA would use at a Tribunal to justify the band increase.
• Hi Thanks for the reply.
  The last improvement post 1991 was approved for granted planning permission in Oct 1992 but I’m not sure when the work actually took place. I also don’t know if it was inspected between then and my purchase date and if it was deemed to be of higher relative value at any stage.
  The property is dated but I am not suggesting that any amount of modernization would increase its value enough to push into the higher band anyway. Surely the band has to base on the current market value as opposed to assumed potential value. Unlike a street of identical properties which generally governed by Fact, being a ceiling value based on previous sales.
  When I spoke to the VOA they seemed to completely disregard its market value and concentrated more on the number and type of rooms (it’s only a 4 bed anyway). My concern is they maybe comparing our house to other larger individual 4 bed properties in my road which on paper could seem similar. In reality because they are larger on larger plots and possibly more appealing they may be worth 50%-100% more than mine.
  I have received my appeal paperwork now so I guess its time to try and justify why it should not have been increased as opposed to them not giving any justification as to why they have.
• As pp was not granted until Oct 92, it's probable the work was not completed until after Apr 93.
  Market value can most certainly be ignored where a dwelling is in poor repair. Also what may well have been acceptable in 1991 would not be acceptable in 2015, so a dwelling up to, say 1988 standards would fetch less pro rata in 2015 than it would have done in 1991.
  Thus the VOA could arguably say that they should value your home without regard to any lack of modernisation.
  The usual comparison by the VOA is with houses of a similar size, you can ask them how your home compares with others in the road.
• The VOA have made us aware that they plan to do a "Drive by" to make an assesment. I still dont understand how any outcome from this will detract from its current market value.
  Its worth pointing out that i purchased this property off the open market through an estate agent. The price had been reduced slightly after several months because there had been no interest in it. How can it be valued by VOA any higher?
• Most pre-owned houses in England are sold via an estate agent on the open market. Wait until the VOA communicate their findings to you, then ask the questions if there is something you don't understand or you disagree with.
• Hi thank you for input but please don't tell me to wait before posting. This is an open forum not yours.
  Cheers.
• Until the VOA tell you their reasons for the increase, we just do not know why they have increased the band. When we do know this, it is much easier to formulate a structured appeal. The fact that the VOA are being pro-active may indicate that there could be doubt about the justification for the increase.