Rating Valuations

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Rating valuations are produced in accordance with the Rating Valuations Act 1998.  These values are for rating purposes only and are intended for the use of Upper Hutt City Council and the Greater Wellington Regional Council.  They are not intended to be used for marketing, sales or any other purpose.

The last valuation date was 1 August 2016.  The city is currently undergoing a general revaluation.  We expect letters to be sent to owners on 7 October 2019.  The new valuations will not be used for rating purposes until 1 July 2020.

Frequently asked questions about Rating Valuations

What is a rating valuation?

A rating valuation is the estimate of the sale price of the property excluding chattels at a particular point in time.  This point in time is the effective date of the valuation. 

When are the rating valuations done?

Rating valuations are carried out on all properties in New Zealand, usually once every three years.  Property markets change over time.  This is why the rating valuations are redone regularly.  It is also why  rating valuations do not necessarily reflect the current market value at a later date. 

Upper Hutt City Council re-values the city every three years.

Who does the valuations?

The valuations can be carried out by the local council or by a valuation service provider on their behalf.  Quotable Value (QV) is Upper Hutt City Council's valuation service provider.

Why does Council do rating valuations?

Most of the rates types set by Upper Hutt City Council are calculated based on capital value:  General Rate, Water Fire Protection and Storm Water.  However, rating valuations are just one of a number of factors Council uses to allocate rates. 

How do the new valuations affect my rates?

There is more to how rates are set using capital values than just the value.  So an increase or decrease in your capital value does not necessarily mean there will be an equivalent increase or decrease in your rates.  Any change in value will not affect your property until the new rating year begins.

At a very basic level there are three steps:

  1. Council works out how much income is needed from rates in order to run the city.
  2. Some rates are for specific things such as water supply.  These are called targeted rates and are charged only to the properties that use these services.  Targeted rates are not calculated using the capital value method.
  3. The 'general rate' rate money is collected to fund things that benefit the general good of the city like roads and parks maintenance.  The general rate amount is then spread across the city in amounts proportional to each property's capital value compared to the total value of the city.

For example, if there were only two properties in the city each worth $500,00, then each property would pay 50% of the general rates required to run the city.  This is because each house makes up half of the total value of the city.

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If, when they are re-valued, house 1 is still worth $500,000 but house 2 is now worth $750,000, then they would no longer pay the same amount of rates.  House 1 would pay less than 50% and house 2 would pay more because each pay a share of the rates in proportion to the value of their house compared to the value of the city as a whole.  In this case 40% and 60% respectively. 

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If you think of Council's rates revenue as a pie, the size of the pie does not get any bigger as a result of the revaluation.  However, an individual property's slice of the pie might get bigger or smaller depending on how the value of the property changed in relation to the average change of the city.

Only rates charged on the basis of capital value will be affected by the revaluation.  In Upper Hutt these rates are the general rate, storm water and water fire protection.  Water and wastewater (pan) will not be affected by any change in capital value.

Why has the land value increased but the improvement value decreased?

In accordance with the Rating Valuations Act 1998, the land value is assessed as if it was vacant.

Assessing the rating valuations involves research into two distinct areas of the real estate market - improved properties and vacant properties.  These markets often behave independently of each other.  If the land value in an area is increasing at a faster rate than the capital value, then the effect will be a reduction of the value of the improvements. 

Remember that the improvements is simply the difference between the capital value and the land value.  It does not necessarily equate to the replacement cost of the buildings or other improvements on the land.

Are valuations available for all properties in the city?

Yes.  The valuations and rates information for all properties are available for public inspection at any time.  You can access the valuations either by using the public computers in the Council reception area or by using your own computer via the rates property search on our website.

What if I disagree with the new valuation?

You can object to a valuation at any time.  However, the process is different depending on the timing of your objection. All objections are handled by Quotable Value. 

Objection in response to a valuation notice

As a property owner you have the right to object to the rating value.  In fact, this is an integral part of the whole process.  Objections allow valuers to assess individual components which may not have been considered in the mass-appraisal process.

Objections can be made online on QV's website or by calling QV on 0800-787-284.  Their team will discuss the process with you further and can provide you with an objection form. 

Each notice of valuation will have a closing date for objections.  If you object during this period, there is no cost to you.  QV will review your property and adjust the valuation if required before the new rating year starts.

Objecting at any other time

There is a lot of work that can be done to a property that does not require a building consent (such as modernising a kitchen, re-roofing and landscaping).  Generally these types of work will increase the value.  Owners can advise QV at any time of work that has been done.  This information will be captured in the new or updated rating valuation. 

If you have not previously told QV about work you've done, you want that work to be reflected in a new valuation and you are outside of the objection period, then you will request an urgent rating value review from QV.  There will be a cost to you involved in this kind of objection.

What is the difference between a Rating Value and a Current Market Value?

It is important to remember that these are two different types of valuations. 

Rating Valuation
  • This type of value is intended only for use by councils as a tool in setting rates
  • The value is only reassessed as requested by councils.  Upper Hutt reassess the values every 3 years.  Therefore the value stays consistent despite a moving market.
  • The value is calculated using a mass appraisal process - most houses are not inspected when the values are set.
Market Valuation
  • Anyone can request a market value at any time from a registered valuer.
  • This type of valuation involves an inspection of the interior and exterior of the property.  Local knowledge and analysis of recent sales data will be used to determine the market value at that time.
  • The valuation will be presented in a comprehensive report.

 

Information on recent general revaluations.

Revaluation 2019

News Release with information about the 2019 Revaluation 
How much as the city increased?

 Main categories

No. of Properties

Capital Value % Change

Land Value % Change

Dairy & Pastoral

45

28.8%

32.3%

Specialist Rural

2

38.7%

44.7%

Forestry

57

34.7%

37.5%

Lifestyle

1,161

30.2%

42.8%

Residential

14,825

39.3%

60.1%

Commercial

314

17.8%

26.3%

Industrial

383

51.8%

36.6%

Other

459

20.8%

53.9%

Utilities

47

5.5%

62.2%

Total

17,293

34.7%

55.7%

What does this mean for me?

The greatest increase in the values of properties is in the residential sector at 39.3%.  This is due to high demand for residential properties in New Zealand.

More information

You can find more information in QV's rating valuation guide(PDF, 284KB) .