Important updates and key insights for Academy Trusts

Important Update: Changes to Academy Trust Property Valuations

School buildings and their assets are specialist, purpose-built environments designed to support education. For Multi-Academy Trusts (MATs), managing a diverse portfolio across multiple locations adds another layer of complexity, requiring careful oversight and strategic planning.

Accurately valuing these assets is crucial for financial planning, regulatory compliance, and informed decision-making. A precise understanding of property values ensures academy trusts can effectively manage their estates, plan for future investments, and meet financial reporting obligations in line with statutory requirements.

Engaging RICS-accredited valuers provides independent, market-aligned assessments that not only minimise financial risk but also ensure compliance with government regulations and accounting standards. Professional valuations offer academy trusts the confidence that their asset values are accurate, justifiable, and aligned with evolving financial and regulatory frameworks, safeguarding their long-term sustainability.

Recent updates in the Academies Accounts Direction (AAD) 2024 and the Academy Trust Handbook 2024 mark a significant shift in how academy trusts should approach property valuations.

Historically, many schools have relied on valuations provided by the Department for Education (DfE). However, new government guidance now emphasises the need for independent external valuations, particularly for academy trusts with long leasehold premises.

Why Has the Guidance Changed?

The DfE’s valuations were primarily intended for national assessments and may not always reflect local market conditions. This can lead to discrepancies in financial statements and impact an academy trust’s financial reporting.

The new Academies Accounts Direction 2024 now encourages trusts to obtain valuations from independent professionals to ensure:

• More accurate financial reporting
• Compliance with accounting regulations
• Transparency in asset valuation

How Should Academy Trusts Determine Property Value?

To align with the new guidance, trusts should seek external valuations through one of the following methods:

• Independent valuation from a chartered surveyor (recommended for accuracy and compliance).
• Valuation from the relevant local authority (if applicable).
• Asset valuation from a construction company or transferring academy trust.