This work is a legislated requirement, undertaken every three years on behalf of Hutt City Council, and is one source of information to help council set rates. The new valuations are based on property values as at 1 September 2019.
New property rating valuations have been completed by Quotable Value for more than 39,000 property owners in Lower Hutt. The figures show that the capital value of residential dwellings has increased by 30.8% with a new average capital value of $657,100. Corresponding average land values have increased by 56.0% and are now $388,000.
As the population increases and more people pay rates the amount of rates is shared across a larger base. Council takes this into consideration along with the new capital valuations provided by Quotable Value to set rates from 1 July 2020. Total income needed to run the city and to provide services along with the rate of inflation are also taken into account in setting rates.
“Lower Hutt has around 39,000 rate payers and that number is forecast to grow as the Wellington region grows and more people choose to live and do business in our city,” says Hutt City Council Chief Executive Jo Miller.
“A change in the rateable capital value of a property does not mean property rates will change by a similar percentage. Rates charges may vary depending on how a property value has changed in relation to the average change across the whole city.”
“The significant jump in property values and growth in population raises a number of challenges. Housing supply, both in terms of public and private provision, and affordability is a big challenge for Lower Hutt which has seen a significant rise in the rates of homelessness in the last three years and has the largest number of people accessing emergency accommodation in the Wellington Region. We also need to prioritise investment in infrastructure to provide the necessary services for our community,” says Jo Miller.
Quotable Value Senior Consultant Paul McCorry says Lower Hutt residential property has experienced significant growth in value over the last three years, particularly Taita (42.7%), Stokes Valley (39.8%) and Wainuiomata (53.1%).
“More central areas on the valley floor have also experienced growth like Boulcott, Woburn and Central Hutt all increasing just over 20%” McCorry says.
“It’s important to remember the new rating values are a snapshot of a property’s value on 1 September 2019, taking account of any market movement since September 2016.”
“In carrying out the rating revaluation for Hutt City Council, a mass appraisal process is used which takes into account recent sales of similar properties around the effective date of the revaluation and establishes a market trend which is then applied to similar properties in that area. Following that, the rating values are independently audited by the Office of the Valuer General. Rigorous quality standards need to be met before the new valuations are confirmed.”
Council rates will not be updated based on the new 2019 rating valuations until 1 July 2020. New rating values are finalised through the Annual Plan process which gets underway early next year.
New property values will be sent to owners from 11 November. Ratepayers have the opportunity to object to their new rating valuation by the deadline date of 23 December 2019.
More information can be found at huttcity.govt.nz/revaluation2019