The Development Board for Rural Wales (Transfer of Housing Stock) Regulations 1993

Valuation

16.—(1) The Board shall appoint and pay the reasonable fees and expenses of the valuer or valuers chosen by the Board from a list approved by the district valuer and independent of itself and of any applicant. A valuer shall prepare:—

(a) an initial valuation of housing stock (except retained dwellings) to be included in a notice to be given by the Board under regulation 11(1)(b), and

(b) subject to paragraph (6), a final valuation of stock (except retained dwellings) to be transferred under regulations 12 or 14.

(2) The Board shall give to a valuer or valuers such information and assistance as he shall reasonably require.

(3) The valuations referred to in paragraph (1) shall be on the basis of the price the property to be transferred would realise if sold on the open market by a willing vendor on the following assumptions:—

(a) that any dwellings and other property are sold subject to any subsisting tenancies but otherwise with vacant possession;

(b) that the only bidders in the market for any dwellings (but not for any relevant property) are approved persons and other persons who fulfil the criteria for approval established under regulation 5; and

(c) that any property is to be conveyed on the terms which have been agreed or required to be imposed in relation to its transfer under these Regulations; and

(d) that the rent in respect of a subsisting tenancy mentioned in sub-paragraph (a) of any dwelling occupied as such at the date of transfer:—

(i) for the period ending immediately before the first anniversary of the relevant date after the transfer will not exceed that charged by the Board at the date of transfer; and

(ii) thereafter would increase (if at all) on each anniversary of the relevant date by an amount not exceeding the aggregate of 4% and the amount (if any) by which the valuers estimate that the retail prices index for the month in which the anniversary occurs will be greater than that for the month in which the previous anniversary of the relevant date occurred, expressed as a percentage of the estimated retail prices index for the last-mentioned month.

(4) For the purposes of the valuation assumption in paragraph (3)(d) an estimate of the duration of a subsisting tenancy of a dwelling shall be made on the basis that the tenancy is treated as in effect during any period when a subsequent tenancy of the dwelling is in effect which was granted to a person who was a tenant of another dwelling, which was occupied as such, at the date of transfer.

(5) In paragraph (3)(d) “the relevant date” means the date on which the Board last increased the rent under the tenancy prior to the date of transfer.

(6) Any dispute between the Board and any applicant regarding valuation of the housing stock shall be resolved by the Secretary of State, or else resolved by the Board and the applicant taking such steps as the Secretary of State shall determine.