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Domestic Reform Archive

It has been decided to change the basis of valuation for domestic property from rental to capital value from April 2007. This section of the website provides information about the background to this decision, our proposals and the process required to implement the reform.
The first of two Orders in Council giving effect to domestic rating reform, the Rates (Capital Values, etc.) (Northern Ireland) Order 2006, came into operation on 1 April 2006. For further information on consultation on the order access the background page.
This Order enables the Commissioner of Valuation to publish the capital values of all domestic properties in Northern Ireland, in advance of the new system coming into effect in April 2007. It also contains a number of non - domestic provisions Read more about the further proposals relating to the Non Domestic Sector
The publication of all domestic property capital values commenced from the start of July 2006 on a phased basis. These are available at Valuation and Lands Agency (VLA) website.
In addition, individual ratepayers will be sent notification of the capital value of their property, including information such as the size and type of property, number of rooms, etc. Ratepayers will have an opportunity to inform VLA of:
  • any inaccuracies in this information;
  • obtain further information on how their capital value was determined; and
  • if necessary seek an informal review of their assessment
well before the new system comes into operation in April 2007.
As well as changing the basis of valuation for domestic property from rental to capital value, other reforms are to be introduced from April 2007. To find out more, you can view the summary of domestic rating reforms.
Privacy Impact Assessment (PIA): The VLA Publication of the Capital Value Domestic Revaluation List in Northern Ireland; August 2006.
This PIA was conducted and progressed with the guidance of the Information Commissioner’s Office in Northern Ireland. The report is designed to inform the domestic ratepayer about the reform to the domestic valuation list and the publication of the list - subsequent to the reforms.
The full PIA: The VLA Publication of the Capital Value Domestic Revaluation List in Northern Ireland; August 2006 – can be viewed below
A second Order in Council entitled 'draft Rates (Amendment) (Northern Ireland) Order 2006' was published for a 7 week consultation on 27 July 2006. It contains details of the remaining domestic reforms including a new rate relief scheme, transitional relief and the establishment of an independent valuation tribunal. The relief package also includes full relief from rates for a property occupied solely by those in full - time training and education, 16/17 year olds and young people leaving care. Comments are invited on whether the legislation contained in the draft Order gives effect to the Government's policy intentions. This consultation closed on 15 September 2006.
Updated New TSN Impact on Domestic Dwellings in Northern Ireland
The Department has updated its analysis looking at the impact of the domestic reform in terms of New Targeting Social Need (New TSN). This updated analysis has been produced using the final capital valuation list produced by the Valuation and Lands Agency (VLA) in June 2006 and the updated Multiple Deprivation Measures (MDM) provided by the Northern Ireland Statistics and Research Agency (NISRA) using Noble indicators of deprivation for April 2005.
The previous New TSN report used the 1998-2002 sales sample of c.47, 000 domestic dwellings and MDMs from April 2001, provided NISRA. The results, of this original analysis were included as Annex 3 of the Reform of the Domestic Rating System in Northern Ireland: Policy Paper, published in August 2004.
The findings of the updated New TSN analysis by and large confirm earlier findings. That is, it suggests that the reform will be New TSN positive. In other words, it will result in a shift of the burden of rate liability from higher deprivation areas to lower deprivation areas.
Analysis of Regional Rate Element using Capital Value Estimates:
Further analysis into the impact of domestic rating reform was undertaken by the Northern Ireland Statistics and Research Agency (NISRA) as part of the process of policy review.
The results were published in a report dated December 2006. The study estimated and compared average regional rates bills by reference to various population groups, under both the current NAV and the new Capital Value models. The population groups broadly represent those described in Section 75 of The Northern Ireland Act 1998.
The Valuation and Lands Agency (VLA) provided NISRA with information on the current rates bill (NAV based) and the capital value (as assessed at 1 January 2005) for every domestic property in Northern Ireland. NISRA's subsequent analyses, which also utilised information from the 2001 Census, provided an estimate of the effect of the policy across both socio-economic issues and the population groups noted above.
NISRA survey (pdf 611Kb)