New Hastings rating valuations – FAQs
Hastings property owners will soon receive a Notice of Rating Valuation in the post or via email with an updated rating value for their property.
These rating valuations are usually carried out every three years to help local councils set rates for the following three-year period. In this case, the process has been delayed for a variety of reasons — not least of all has been the impact of Cyclone Gabrielle on the district.
The storm’s impact necessitated a temporary law change, which we will go into more detail about below, along with a number of commonly asked questions that we regularly receive about rating valuations:
What are rating valuations?
Rating valuations reflect the likely selling price of a property at the effective revaluation date, which in this case was 1 August 2022, not including chattels.
Hastings District Council will use these valuations as a guide for setting your rates — but it’s important to keep in mind that a change in the rateable value of your property does NOT mean rates will change by a similar percentage.
Does my rating valuation take into account any damage from Cyclone Gabrielle to my property?
No, the definition of Capital Value has been amended under the Severe Weather Emergency Recovery Legislation Act 2023, which means these rating valuations will not take into account damage to land or improvements, such as houses, vineyards or buildings.
The exception is where a building or improvement is demolished or removed and we have been advised of the demolition or removal. In this case, the capital value will have been reduced. The rating valuation can also be amended post revaluation on removal or demolition of an improvement.
Why doesn’t my rating valuation take damage from Cyclone Gabrielle into account?
The rating valuation process was nearly complete by the time of the cyclone. At that late stage, it simply wasn’t possible to gather information on every damaged property, accurately determine the impact on values without any comparable sales, and to achieve all this before 30 June 2023, which is the date that rating valuations were required by law to be implemented by.
That is why the Government proposed an Order in Council under the Severe Weather Emergency Recovery Legislation Act 2023 to temporarily amend the definition of Capital Value in the Rating Valuations Act so that cyclone damage to land or improvements like houses, buildings or vineyards did not have to be considered when assessing the revaluation of Hastings district properties.
This temporary amendment was approved following a two-week public consultant period.
What is the Order in Council about?
An Order in Council is used by Government to modify legislation allowing Councils to function effectively and recover after emergency situations. Similar orders were put in place for Christchurch City, Selwyn, Waimakariri and Kaikoura district councils after the Canterbury earthquakes in 2010 and 2011, and the Kaikoura earthquake in 2015.
The amendment came into effect on 9 June 2023 and will continue until 30 June 2026 or the implementation of the next revaluation after June 2023, whichever happens sooner. The Order in Council is available to view here.
Why did Hastings District Council need an Order in Council?
The 2022 revaluation had not been completed at the time of the cyclone, and even though the effective date of the revaluation is before the event, the Rating Valuations Act 1998 requires values to reflect the physical state of properties at the time new values are released to the public.
Without the Order in Council, this would require all damaged properties to be identified, inspected and accurately valued to reflect their actual physical condition, which wasn’t possible given the deadline and without any sales evidence within the worst affected areas.
How are rating valuations determined?
These are based on property sales for comparable, nearby properties at or before the valuation date of 1 August 2022. This is standard practice throughout New Zealand.
QV’s website says my house has four bedrooms, but it only has three. Won’t that affect its rating?
Rating values are based on factual data that QV holds for each property – including floor area, land area, age of house, and construction details.
If the estimated number of bedrooms or bathrooms showing on our web site is wrong, you can sign up for a free account on QV.co.nz and update it – but it will not have an effect on your rating value.
If you think the value assessed for your property is wrong, please give our revaluation team a call on 0800 787 284 or email ratingsupport@qv.co.nz. Issues like this one can often be resolved without going to the trouble of lodging a formal objection.
The capital and land value has increased, but why has my house value dropped?
Land values and capital values are assessed independently of each other — meaning the difference between the two is effectively the added value of improvements. As land values have increased at a significantly higher rate than capital values, the added value of improvements (e.g. your house, other buildings, landscaping etc.) can sometimes fall.
For instance, a modest home on a large, flat section would be sought after by developers, who would likely pay little for the home if it had to be removed in order to redevelop the site.
Hastings District Council uses the land value, not the capital value, in setting rates.
Houses in my area are selling for more (or less) now, can that be reflected in my rateable value?
No, the values were set as at 1 August 2022 — any changes to the market since then cannot be reflected in your latest rating valuation.
Can I object to the valuation?
Yes, if you do not agree with your rating valuation, you have a right to object through the objection process, the details of which can be found in your Notice of Rating Valuation.
However, damage caused by Cyclone Gabrielle or other severe weather damage is not grounds for objection.
Where an objection does result in a change to your capital value and land value, your rates will be updated and backdated to 1 July 2023.
If I object, will I get the value I ask for?
Not necessarily. The objection decision value will be based on sales evidence around the revaluation date and may result in a value more, or less, than the contended value.
Where an objection does result in a change to your capital value and land value, your rates will be updated and backdated to 1 July 2023.
I have improved my property recently – can this be included in my valuation?
Yes, absolutely, this is one of the main reasons that people object. Add photos of these improvements to your objections, so our valuers can gain a good appreciation of what has been done.
If you do not agree with your rating valuation, you have a right to object through the objection process, the details of which can be found in your Notice of Rating Valuation.
How can I let you know about the damaged improvements that have been removed from my property?
The best way to do this is to visit www.updatemyproperty.co.nz and provide us with more information on your renovations. Or contact us via phone or email here.
Find out more about the rating revaluation and objection process.
