Business rates increases causing demolitions

Tuesday, December 29, 2009

Business rates increases is leading to property being destroyed by some landlords, it has been suggested.

By Ashley Brunskill

Business rates increases is leading to the destruction of commercial property, it has been suggested.

The Conservatives have criticised the government for imposing a tax on empty buildings after data seemed to suggest owners may have demolished thousands of such buildings to escape it, reports the Financial Times.

JPMorgan has recently reported uncertainty about taking up its option on a commercial relocation of several London buildings to one new headquarters in Canary Wharf due to government measures.

Justine Greening, shadow local government minister, said: "It appears thousands of buildings are being demolished across the country to avoid business rates bills they cannot afford."

However, the government has argued that the suggestion is not fair as properties had been removed from the list for varying reasons.

Ministers changed the rules in 2008 to make landlords pay full rates on empty commercial buildings they suggest that the figures also show changes to thousands of properties from commercial to residential use in the past two years.

Source: ask-re The Property People LLP