18 Methods of Valuation · 18.1 Methods of valuation

18.1.2 Rental (investment) method and rateable value for property tax

The rental method values a let property as net income × YP, where net income = gross rent − outgoings; rateable value applies the same idea to property tax — the annual rent a property might reasonably fetch from year to year, less a statutory allowance for repairs.

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Key terms

  • rental method
  • investment method
  • income capitalisation
  • gross rent
  • outgoings
  • net income
  • years' purchase
  • rent fixation
  • standard rent
  • under-rented
  • rateable value
  • annual letting value
  • ten per cent repairs allowance
  • assessed value
  • capital value system
  • hypothetical tenant
  • property tax

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Mains writingMains writing
  5. Common trapsFoundation
  6. Quick revisionFoundation

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