Empty rates review welcomed

A RATINGS advisor has welcomed the Government’s decision to carry out a full review of the Empty Property Rates legislation introduced in April 2008.

John Hayward, head of rating at Eddisons Chartered Surveyors said the legislation was ill-conceived and had hampered new development since the start of the recession.

“The introduction of the new legislation was poorly timed when demand in the property market was falling dramatically and the credit crunch was beginning to bite,” he said. “There is no doubt this has had a negative effect on new development and with finance still constrained, any reduction in the tax burden to small businesses would be very welcome news.”

The Chancellor of the Exchequer, George Osborne, has agreed to set up a working party, led by York Outer MP Julian Sturdy and six parliamentary colleagues.

The proposals are expected to include a three-year exemption from rates for new development to encourage regeneration and full rate relief for low rateable value properties, which are typically occupied by struggling smaller businesses.   

Mr Hayward said: “There is still a long way to go but I am hopeful the working party will take on board the concerns of the property industry and react accordingly.”