Empty Rates Liability Set to Hit Landlords

19/02/2008

Landlords of vacant industrial and retail premises and offices have only a few weeks left in which to act before they are potentially hit with a full rates liability.

The Rating (Empty Properties) Act 2007 comes into force on 1^st April 2008.  The government will scrap the 50 per cent relief on business rates from which all non-industrial premises currently benefit three months after a property has become empty.  Relief currently given to vacant industrial premises of 100 per cent in perpetuity will now last just six months. 

“Since the announcement in last year’s budget it has been estimated that the cost to business is likely to be around £1 billion” says David Goodchild, head of rating at property consultants Aitchison Raffety.  “The higher cost of owning a building could make regeneration less viable and deliberate damage could increase”.

Once a property is let, landlords could seek to increase service charges to recover some of their costs and occupiers could get caught in leases which make them liable for empty rates even when the property is no longer suitable and they cannot assign the lease.

“Both landlords and tenants need to take professional advice and consider whether pursuing a rating appeal may reduce their rates liability” says David Goodchild.   

Aitchison Raffety has a team of specialist rating surveyors who are focused on maximising rates savings operating from a regional network of offices including Milton Keynes.