Rateable valuations

Each year the territorial authority (local council) provides owners with a 'rating valuation' - what they consider the property (land and buildings) is worth. Local authorities use the rating valuation to set 'rates', which property owners pay to cover water supply, road maintenance, rubbish collection and public services such as libraries, parks and swimming pools. The rating valuation is often used as a guide when setting the sale price. However, houses can sell for more or less than the rating valuation - the selling price will depend on market demand, interest rates and when the rating valuation was completed.