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The Government has now unveiled legislation that delivers another blow to the property industry reports commercial property agent, prop-search.
Only a year after extending business rates relief for empty commercial premises - with rateable values up to £18,000 - the Government has now u-turned on this exemption. It has now confirmed that from 01 April 2011, landlords will face full business rates bills for warehouses that have been empty for six months and for shops and offices that have been unoccupied for three months, irrespective of a property’s rateable value.
Chris Billson, a Director of prop-search, said:
“We are extremely disappointed that the Government has cut this relief which will no doubt come as a surprise to a lot of landlords and present an additional hardship.
“It had been hoped that should this relief be cut that it would not apply retrospectively - and that landlords with empty properties would qualify for a period of relief from 01 April 2011. However, this is not the case and f rom 01 April, any property that has been empty for more than three months - or six months in the case of industrial buildings - will be liable for empty property rates.”
Prop-search is concerned that the changes to reliefs will introduce a significant additional burden on landlords that may find themselves holding empty properties or on investors struggling to let properties in a difficult letting market.
There are however, some measures that can maximise the reliefs that are available to landlords/tenants. For further information on these and other possible measures to reduce your exposure to void rates please contact prop-search - Tel: 01933 223300.