BPF: Empty property rates will halt development, increase demolitions

The changes to empty rates relief will see developments cancelled and unused buildings demolished, according to the British Property Federation (BPF).

It warned that firms occupying commercial premises are being hit hard and taking at least half of the tax burden through leases on property they no longer need, Property Week reports.

Earlier this year the Rating (Empty Properties) Act 2007 increased liability to business rates for unoccupied properties from the previous level of 50 per cent of the occupied rate to 100 per cent.

Peter Cosmetatos, finance director at the BPF, told the news provider: "The tax is causing older buildings to be demolished early and new projects to be shelved.

"The result will be less available property and higher rents when demand begins to recover."

A hotline has been set up by the BPF for firms to report the effects of the changes and has already shown that hundreds of buildings are being demolished.

Last month the news provider reported that London-based Salmon Developments is to demolish older buildings it cannot let in a protest against the legislation.

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