What is the interrelationship between utility and highest and best use?

1 Answer

Answer :

Property Utility - is the current use and functionality (function, service, value, efficiency, practical usefulness) of a property. If the property use is optimised, the property is said to have a higher functional utility and when it is underutilised the property is said to have a functional utility lower than comparable market value.It may occur that a reduction of a property's utility or value has advanced to such an extent that it is no longer capable of an economically viable use in its current state, e.g. a collapsed building or a commercial building that has become isolated due to lack of access brought about by road changes.Given the highest and best use is applied as productively as possible within the given potential and constraints of the property, the property utility would be optimised (used to its highest capability) and therefore the property would be optimised in use and value.The interrelationship between the 2 concepts of the highest and best use and the property utility is the question of: Does the property provide reasonable use for a particular value (the property's current functional utility) or would one find/appraise a higher and better use for the property?

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