Markets have been around for hundreds of years and it is right to acknowledge that the markets that existed in the middle ages are very different to many of the markets that exist today. Today we have some wonderful examples of modern market halls, markets situated in shopping malls and iconic market buildings. Against this background markets need to be considered in a different context. We are all aware of the classic definition of a market as being a concourse of buyers and sellers and this still applies to many hundreds of markets operating today, but many markets now operate with complex landlord and tenant arrangements with tenants enjoying legal protection. This raises the question of whether such arrangements actually fall with the classic definition of a market.
Some years ago we saw the Valuation Office embark upon a series of revaluations of market halls because they were satisfied that the shops/units in many market halls gave rise to a separate valuation status. A significant part of the argument used by the Valuation Office turned on the letting arrangements used by market operators and the degree of security given to traders. Thankfully the Valuation Office seems to have completed its list of target markets, but the aftermath of these revaluations are still being felt by some Nabma members.
On a different issue there has always been a general understanding that when a market hall is in receipt of a planning approval there is no need for a separate planning approval to be obtained when a shop/unit changes one use to another. However it seems the attitude of some planners on this issue is now changing and markets are coming under pressure to ensure that separate applications are made where, for example, the change is from general retail to hot food. The argument advanced by planners ancillary to the main retail use it will not give rise to a requirement for a separate planning approval. What is ancillary? Normally up to a ten per cent change will be viewed as ancillary. This means that market managers need to be aware of the impact of any detailed changes to the markets offer and be aware of the potential planning consequences of such changes. It is important that you are conversant with the planning authority’s planning policies and objectives. Of course there are substantial benefits for both market operators and traders in providing security of tenure and ensuring that shops/units are covered by proper letting arrangements, but just a word of caution, that market which you have known and referred to as such for many years might not be seen as a market within the classic definition that I mentioned at the beginning of this article.
While we are dealing with how markets are viewed by external agencies can I end by dealing with the position of markets/street traders and rating liability. This issue has arisen, at a meeting of the Association of London Markets, and I promised to follow up with the Valuation Office. It seems that the Valuation Office takes the view that markets, both indoor and outdoor, fall to be rateably assessed because of the powers that are used to establish markets but street trading is not normally viewed as being rateable assessed. There are a few street trading in pitches in London rateably assessed but they are very much an exception to the current approach. The Valuation Office uses the case of Newham LB V Hampsher (Valuation Officer) May 1970 as a basis for taking this view. Here Newham issued street trading licences in respect of Rathbone Street Market and the Lands Tribunal held that the market was not in beneficial occupation. Whatever views one might have on the issues addressed in this case there are no plans to change this approach, which must be a great relief to the many London Boroughs that operate street markets via street trading licences. There are some of the most famous markets in the country operated in London. They promote themselves as markets not as street trading activities. However they are not regarded as markets for rating purposes. Perhaps another reason for again looking at the classic definition of a market?
When is a market not a market? Perhaps thats something we should debate at the Nabma Conference. Are you coming? 22nd-24th September at the Imperial Hotel, Torquay. You will be very welcome.
Graham Wilson OBE
Chief Executive,
Nabma
