Value shift statistics Value shift statistics summarise the changes that have occurred between two revaluations. They are based on averages and, as such, are affected by outliers. This appendix explains the calculation of value shifts, the tolerances that apply, methods for removing outliers and the outputs required for each stage. Calculation of value shift statistics Table D1: Calculation of value shifts Proposed SV (2019 level) Change in Site Value -1 x 100 Previous SV (2018 level) Proposed CIV (2019 level) Change in Capital Improved Value -1 x 100 Previous CIV (2018 level) Proposed NAV (2019 level) Change in Net Annual Value -1 x 100 Previous NAV (2018 level) Change in Added Value of Detached CIV2019 SV2019 – Homes (AVPCC 110) and Residential -1 x 100 CIV2018 SV2018 – Rural/Rural Lifestyle (AVPCC 117) By subtracting 1 and multiplying by 100, the result is represented as a percentage, with a negative result denoting a decrease in value and a positive result denoting an increase in value. A value shift is produced for each assessment that has valid values in both 2018 and 2019. These are summarised by calculating an average per SMG. Average values are affected by outliers so it is necessary to identify and remove unrepresentative value shifts (e.g. where the nature of the property has changed between valuations and a supplementary valuation has not yet been performed). Value shift stage outputs and tolerances Table D2: Stage 3 outputs Residential (per SMG) Average Change in SV for sale properties and Average Change in SV for non-sale properties Rural (per SMG) Average Change in CIV for sale properties Average Change in CIV for non-sale properties Average Change in Added value of Detached Houses (AVPCC 110) for sale properties Average Change in Added value of Detached Houses (AVPCC 110) for properties HRP Individual value shifts only
Value shift statistics Value shift statistics summarise the changes that have occurred between two revaluations. They are based on averages and, as such, are affected by outliers. This appendix explains the calculation of value shifts, the tolerances that apply, methods for removing outliers and the outputs required for each stage. Calculation of value shift statistics Table D1: Calculation of value shifts Change in Site Value Proposed SV (2019 level) Previous SV (2018 level) -1 x 100 Change in Capital Improved Value Proposed CIV (2019 level) Previous CIV (2018 level) -1 x 100 Change in Net Annual Value Proposed NAV (2019 level) Previous NAV (2018 level) -1 x 100 Change in Added Value of Detached Homes (AVPCC 110) and Residential Rural/Rural Lifestyle (AVPCC 117) CIV2019 – SV2019 CIV2018 – SV2018 -1 x 100 By subtracting 1 and multiplying by 100, the result is represented as a percentage, with a negative result denoting a decrease in value and a positive result denoting an increase in value. A value shift is produced for each assessment that has valid values in both 2018 and 2019. These are summarised by calculating an average per SMG. Average values are affected by outliers so it is necessary to identify and remove unrepresentative value shifts (e.g. where the nature of the property has changed between valuations and a supplementary valuation has not yet been performed). Value shift stage outputs and tolerances Table D2: Stage 3 outputs Residential (per SMG) and Rural (per SMG) Average Change in SV for sale properties Average Change in SV for non-sale properties Average Change in CIV for sale properties Average Change in CIV for non-sale properties Average Change in Added value of Detached Houses (AVPCC 110) for sale properties Average Change in Added value of Detached Houses (AVPCC 110) for properties HRP Individual value shifts only
2019-Valuation-Best-Practice-Specifications-Guidelines.docx