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Buildings 'could be demolished' following business rate rises
An increase in business rates next month may result in more empty commercial properties being demolished.
This is according to NB Real Estate, which has warned that landlords may look to knock some of their portfolios down so as to avoid paying higher costs on sites that are not in use.
This April, increases of over 20% could bring the annual rent payable on a 155,000 sq ft office in the West End climb to £2.8 million and director of rating at the firm Andrew Warde said that the trend of demolishing buildings in order to avoid the increasing costs will move from regional cities to prime locations in the capital.
"Rates are such a large percentage of the rental value of buildings that the large increases due in April will increasingly make poor quality buildings in high value areas unlettable," he explained.
Last week, the Valuation Office Agency urged business owners to check the rateable values of their properties prior to the introduction of the new charges next month.
This is according to NB Real Estate, which has warned that landlords may look to knock some of their portfolios down so as to avoid paying higher costs on sites that are not in use.
This April, increases of over 20% could bring the annual rent payable on a 155,000 sq ft office in the West End climb to £2.8 million and director of rating at the firm Andrew Warde said that the trend of demolishing buildings in order to avoid the increasing costs will move from regional cities to prime locations in the capital.
"Rates are such a large percentage of the rental value of buildings that the large increases due in April will increasingly make poor quality buildings in high value areas unlettable," he explained.
Last week, the Valuation Office Agency urged business owners to check the rateable values of their properties prior to the introduction of the new charges next month.
Mon, 1st Mar 2010