Auckland Council and QV in stoush, thousands of property rates valuations affected

Monday, 16 July 2018

Auckland Council is unhappy with the quality of QV's work.

Thousands of property rates valuations in Auckland are caught in an unprecedented dispute between the council and state-owned valuer QV.

QV has been found to have taken short-cuts in thousands of valuations for setting property rates, and missed two deadlines to complete the work.

'Council is disappointed in the quality of QV's work, which has resulted in lengthy delays for ratepayers, and considerable re-work for the council and QV,' it said in a briefing statement to councillors obtained by Stuff.

The council is withholding undisclosed payments to QV, the country's biggest valuer, until the work is sorted.

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Thousands of property owners may get demands for rates that will change during the course of the year, if QV's valuation is found to be wrong.

The problems centre on the way QV re-assessed many of the 7,893 properties where owners had challenged the valuations done last year, upon which the council calculates property rates.

'An audit by the Valuer General in June confirmed that QV were being inconsistent in following the rating valuation rules regarding on-site inspections,' said the council.

The Valuer-General who oversees local body property revaluations advised the council to urgently carry out a legal review of how QV was carrying out what should be individual on-site inspections.

'They did not follow the law, or their contractual requirements, by not carrying out on-site inspections required,' said the statement.

Stuff has sought comment from QV, but a spokesperson said they were unable to respond.

The council says 5,200 ratepayers' objections remain unresolved, with rates bills for 2018/19 about to be mailed out.

Thousands of these are expected to involve work done by QV which the council is now having to revisit.

It's the biggest-ever snag in the three-yearly property revaluation process carried out by Auckland Council, and thought to be unprecedented nationwide.

Auckland Council said QV failed to meet an April 30 deadline for re-checking individual properties, and also failed to meet a three-month extension to the end of June.

The council said ratepayers are required to pay rates as stated on the bills going out, and any adjustments necessary after re-checking QV's work would be made during the course of the year.

Auckland Council will write to affected ratepayers next week.