Frances Plimmer

Consumer Behaviour in the Valuation of Residential Property: A Comparative Study in the UK, Ireland and Australia

This paper reports the results of empirical investigations that examine behavioural aspects of residential property valuations. Following the house price collapse of the late 1980s in the UK, there was considerable criticism of the valuation methods used by residential valuers. In particular for the current research, the valuation methods employed by valuers had not taken account of buyer behaviour in the valuation process, which contributed to inaccurate valuations. This research investigates both the attitudes of the consumers of residential property and the actual valuation methods used by valuers to determine whether they account for buyer behaviour accurately. The study was undertaken on a cross‐national comparative basis in the UK, Ireland and Australia and pursued on a qualitative basis. Overall, the research concludes that although valuers believe that buyer behaviour is an important part of the valuation process they simply do not consider buyer preferences. In effect, valuers have reduced the valuation task to a confirmation of bid price and, because of lender pressure which occurs worldwide, valuers overlook the economic sustainability of the property asset, which has severe implications for housing markets and national economies that interact with these markets.

Mutual Recognition of Professional Qualifications

In the light of Europe’s experience of its Directive on mutual recognition of professional qualifications and the World Trade Organisation’s (WTO) intention to achieve a global marketplace for professional services by identifying “disciplines” which can be applied to all professions, this paper considers a potential methodology for achieving a global system for the free movement of professionals. The paper explains the process of mutual recognition as implemented within the European Union and discusses the approach which the WTO is likely to adopt towards the globalisation of services. The problems which face the surveying profession (including the problem of identifying the various surveying professions which exist in different countries), the role of professional organisations, the nature of “professional competence” and the threshold standards applied to professional competence as a vital component of any mutual recognition process are also discussed.

Valuation banding – an international property tax solution?

Since 1993 Britain has used a ebandedi property tax as opposed to discrete values for the assessment of residential property. The expressed views of the British Government on its operational worth as a means of assessing and administering a residential property tax are examined and the possibilities of reviewing and revaluating the tax base are explored. In summary, the purpose of this paper is to present findings on the operation of this unique system highlighting strengths and weaknesses and its viability/applicability in other countries and jurisdictions. Initially the paper provides an empirical analysis demonstrating a number of the operational advantages and disadvantages of the system. This aspect will focus on equity issues, effective tax rate analysis and a number of administrative aspects/concerns. Since the initiatory research work was completed the research team has been afforded access to domestic property survey data in Britain as part of a new pilot project it is conducting in conjunction with the Inland Revenue Valuation Office Agency (IRVOA). This body is charged by the UK Government with the responsibility of valuing (inter alia) all real property for local and central taxation purposes. The additional data thus provided affords the opportunity for a larger geographical area of study and the paper will present these analytical findings. The paper concludes by drawing together recommendations in relation to how the system can be improved; does it represent a fair and equitable alternative approach to discrete value based systems? This part of the paper will examine the potential for such a system in other jurisdictions particularly where resources are limited in terms of experienced appraisers, availability of technology and tradition of applying ad valorem taxation. In addition, there is the opportunity to take advantage of the available technology of mass appraisal. For domestic property taxation this could entail a discrete valuation process, easily subsumable into banded allocations as and if required under the extant banded property tax system, with the added opportunity of frequent updating at minimised cost and effort.

Reform of UK local government domestic property taxes

The importance of local government within the UK has never been stronger, and this has direct implications as to the most appropriate method of financing this level of government. The council tax in Great Britain and traditional domestic rates in Northern Ireland represent the two primary sources of local government finance based on domestic property, which currently require significant reform. Weaknesses of the existing systems include the lack of buoyancy due to infrequent revaluations, horizontal and vertical inequities and the need to ensure that domestic property tax systems are seen to be fair. The paper makes a number of important recommendations which would enhance the acceptability and ultimately improve the operation of these forms of ad valorem taxation.

The Creation of Fiscal Space for the Property Tax: The Case of Central and Eastern Europe

The case for the property tax as a significant revenue generator has been well made by many eminent scholars in public finance. It nonetheless continues to remain a tax that is under-utilised in many transition countries. The purpose of this paper is to investigate whether there is the fiscal space to develop the property tax within the eight CEE-super-1 countries that joined the EU in May 2004. Currently, property tax revenues within the selected countries represent approximately 0.5% of GDP, whilst the average for the OECD is just over 1%. This difference in relative importance would appear to suggest that, whilst there is potential for the property tax to create greater revenues, there are structural problems that are preventing this. The paper highlights a number of these problems and suggests mechanisms to address them. It is argued that properly designed, the property tax could crowd out many of the ‘nuisance’ taxes and fees that already exist within local government.

An investigation into the use of compulsory acquisitions by agreement

Compulsory purchase is a subject which, over the past decade, has received much attention, particularly with major infrastructure schemes such as the Channel Tunnel and the associated rail link. Examines an area of compulsory acquisition which has received scant attention; that of acquisitions by agreement. Outlines the research focusing mainly on public sector organizations. Outlines the legal and statutory background to acquisitions by agreement; and more importantly the reasons why an authority will choose to pursue the route of acquiring by agreement, as opposed to acquiring by compulsory purchase, particularly when both options are available. Also considers the advantages, and disadvantages, to both the acquiring authority and vendor in acquisitions by agreement.

Land Administration for Sustainable Development

SUMMARY For more than three decades, Ian Williamson, Stig Enemark, and Jude Wallace have been fascinated by land issues. Five years ago Ian and Stig decided to document their lives’ work in the land-related field. Both have a strong cadastral background with Ian having strength in institutions, particularly in the English speaking world, and Stig bringing knowledge of European systems with a focus on land management. They recognized the need for a strong legal perspective, which was provided by Jude, who has spent a lifetime working as a land policy lawyer. All recognized the need for solid technical support, with the expertise provided by Abbas Rajabifard, who has many years of experience in spatial data infrastructure (SDI) and geographic information systems (GIS). The end result is a book titled “Land administration for Sustainable Development” with all authors taking responsibility for the entire text. After a five year journey the book was published by ESRI Press in early 2010. This paper overviews the philosophy of the authors as they explore the concept of land administration for sustainable development. The result is a practical treatise with a strong and universal theoretical foundation that explores the systems that administer the ways people relate to land. The authors believe their experiences are equally of use to both less developed and developed countries. This global context necessitated a holistic view of land administration as a central component of the land management paradigm. The authors have used this paradigm as the theoretical basis for delivering a holistic approach to LAS in support of sustainable development. While the authors recognize that all countries or jurisdictions are unique and have their own needs, they propose ten principles of land administration that are applicable to all countries. Key themes promoted by the authors include the adoption of a toolbox of best practices for designing LAS with general, professional, and emerging tools that are tailored to specific country needs. Also, there is a focus on using common land administration processes as a key to understanding and improving systems. The authors explore the relationship between land administration and land markets, the central economic driver for most countries. The authors conclude by emphasizing the importance of land administration to the spatial enablement of society, where government uses place or location as the key means of organizing information related to activities ranging from health, transportation, and the environment to immigration, taxation, and defense.

Unoccupied Rating: The Case for Reform

On 1 April 1990, with the introduction of the Uniform Business Rate, came new provisions relating to the rating of empty non‐industrial hereditaments. In a booming marketplace, with almost full occupancy, the imposition of a 50 per cent compulsory unoccupied rate charge might pass unnoticed. However, in a depressed market, costs incurred by owners of unoccupied property have widespread implications. Based on under‐graduate research, concentrates on why unoccupied rate liability was introduced in its previous and present form, the reasons for its past reform and the justification for reform of the present legislation. Analyses the plight of owners today and prepares a case for the reform of the current legislation.

Rating of Markets

Considers the problems of rating valuations for street and indoor markets. Discusses the most suitable way to solve them using three different types of market as examples. Queries whether the rates bill should be charged to the landlord or the occupier of the individual stall. Provides guidelines for the rating valuation of markets throughout the country.

The Valuation Profession in France

Outlines the nature of the valuation work undertaken by valuers in France, the personnel involved and their professional education and training. Describes the three main property professions in France. Places their work into the context of the single european market and the Commission′s Directive on the mutual recognition of professional qualifications throughout the European Union.