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ARTICLE · 26 JANUARY 2011

Empty Property Rates Relief Cut - Return To Bombsite Britain?

DMH Stallard LLP
DMH Stallard LLP
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DMH Stallard LLP

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The Government has announced that from 1 April 2011 the empty property rates threshold will revert to £2,600 from the current level of £18,000.

United KingdomReal Estate and Construction

The Government has announced that from 1 April 2011 the empty property rates threshold will revert to £2,600 from the current level of £18,000. This will be a matter of concern for commercial property owners who have any empty premises in their portfolio.

The changes will have a widespread impact on both landlords and tenants, whether you or your clients are:

  • landlords and wish to discuss how to make your commercial leases more attractive to prospective tenants; or
  • tenant of business premises and wish to discuss how you may be affected by the virtual scrapping of the scheme.

Currently the relief provides that owners of unlet commercial property with a rating value of under £18,000 pay no business rates on their empty property. The Government has estimated that it would cost £400m to continue the scheme, and as part of its wider spending review believes that cost can no longer be justified.

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