Twitter Facebook RSS FEEDS

Landlords set to face £142m empty property tax

Monday, 7 July 2008 12:00 AM

Landlords could face a bill of £142 million due to a new empty buildings tax.

The tax - announced last year, and implemented on April 1st as a means dissuade owners from keeping properties empty - was originally expected to raise £950 million.

However, falling occupancy rates in the commercial sector, means as much as an additional £142.5 million could now be raised.

A report by property a consultancy NB Real Estate reveals the numbers of unlet commercial properties has risen by 22 per cent over the last two years to 9.3 per cent in March 2008.

The rule changes mean most property that has been empty for more than three months will no longer receive relief from rates - exposing them to the new tax.

Andrew Warde, director of rating at NB Real Estate, said: "This empty rates tax was conceived when the property market was performing strongly, but the downturn is heaping misery upon misery.

"The government's belief that landlords keep buildings empty without good reason is just plain wrong and the blanket application of additional rates tax just doubles the pain."

He explained commercial properties are often left empty due to low demand and high tax rates will have little effect on landlords pushing for tenants.

"In the longer term landlords will simply demolish empty buildings which are particularly difficult to let rather than pay this tax, a wasteful loss of properties that might otherwise be refurbished when market conditions are right."

Mr Warde added about six million sq ft of space due to be completed in the City by the end of the year, adding to seven million sq ft already unlet.

"We could have up to 11 million sq ft empty just in the City alone a year from now. The cost to the property sector of paying rates on all these vacant buildings since April has been considerable, and is likely to increase."

Mr Warde concluded as a lot of construction is speculative, "developers will have to think twice about building without a pre-let in future".

Daniel Barnes

Related stories

Landlords in the North West were especially active say ARLA.

Landlords set to slow property trading in 2012

More buying and selling of rented homes at the end of 2011 but active landlords set to sit tight this year, says ARLA.

 Anyone who has owned a home in France for between 15 and 30 years could be particularly badly affected. Image:Thinkstock

Owners of French property set to pay more tax

Brits who have owned French home for between 15 and 30 years could be hardest hit.
Man with calculator

Landlords failing to take advantage of tax breaks

Landlords are failing to take advantage of tax breaks open to them, according to new research issued today.

 Property owners who leave their home empty for more than two years could face a council tax hike under new government plans.

Council tax threat to owners of empty homes

Government consults on new council tax premium as part of drive to tackle 700,000 empty homes.
Abolition of stamp duty and reform of council tax tops list of recommendations from Mirrlees Review. Image: Thinkstock

Review calls for property tax shake-up

Abolition of stamp duty and reform of council tax tops list of recommendations from Mirrlees Review.

Empty houses are a controversial subject with so many people unable to afford to get on the property ladder. Image: Liquid

Scots plan council tax levy on empty homes

Double council tax on 25,000 homes empty for more than six months could raise £30 million for affordable housing.
ARLA says landlords need help to improve homes they could be banned from renting from 2018. Image: Thinkstock

Private landlords failing on energy efficiency

ARLA says landlords need help to improve homes they could be banned from renting from 2018.

Trains are expected to travel at around 225mph on the new route.

Property owners face up to HS2 go-ahead

Transport secretary approves high speed train line with extra help for homes on route.

39 per cent of professional landlords said their rental income increased this year. Image: Thinkstock

A third of landlords increase rents

Landlords raise rents in third quarter on back of rising tenant demand.

 The Halifax survey shows that the North West has the highest number of long-term empties. Image:Thinkstock

Increase in empty homes is blow to campaign

Survey by Halifax contradicts government figures showing a fall in empties.

Search property

Headlines

Directory

Alaris

Alaris Logo
Alaris specialise in quality Bathrooms and Kitchens along with many other unique products for your home. The range of kitchens, kitchen worktops and bathrooms is extensive and the highest quality so you are sure to find what you want. New bathroom furniture, bathroom suites, taps, showers and cabinets are added regularly.

Bathrooms365

Bathrooms365 Logo
Bathroom365 supply all areas of your new bathroom - leading-edge designed bathroom suites, stylish bathroom taps and showers, all styles and forms of shower enclosures and a vast collection of bathroom furniture.

Beds Direct

Beds Direct Logo
Whether you've just moved into a property and need to furnish it or just fancy having something new to sleep on, Beds Direct offer you a wide array of beds to order online or via the telephone.

Fitmykitchen

Fitmykitchen Logo
Fitmykitchen are specialist suppliers of kitchen appliances, sink taps, waste bins and furniture. So whatever you want from kitchen sink taps to waste bins look no further than fitmykitchen, UK, the specialist suppliers of kitchen appliances, stainless steel sink taps, waste bins and kitchen furniture.

MyStampDuty

MyStampDuty Logo
We help people buying property all over the UK to minimise Stamp Duty Land Tax on residential and commercial property. If you are looking at purchasing a new home or business premises over £500,000, contact us today by completing the form on the right

Oak Furniture Land

Oak Furniture Land Logo
For hardwood furniture, including Solid Oak, Mango, Mahogany, Sheesham, Acacia, Ash and Birch, look no further than Oak Furniture Land.

Propertywide

Propertywide Logo
Propertywide.co.uk is Countrywide plc's dedicated property website. Created to provide online access to all our estate agency, lettings and property related services, Propertywide.co.uk has been designed with the consumer at heart.

The 21st Century Radiator Company

The 21st Century Radiator Company Logo
Welcome to 21st Century Radiator Company. We supply a stunning range of traditional reproduction high quality cast-iron radiators and cast-iron baths. All our cast-iron radiators and cast-iron baths are brand new, fully tested and guaranteed for ten years.

Rated People

Rated People Logo
Whatever type of home improvement or garden remodelling project you have, Rated People can help you to identify the right tradesmen for the job in a way that is quick, easy, convenient and, as it is based on real-life recommendations, trustworthy.

Residential Land

Residential Land Logo
If you are looking for short or long term rentals in Central London, Residential Land have a portfolio of over 1200 flats and houses in the best postcodes across the Capital.

Simply Bedrooms

Simply Bedrooms Logo
Simply Bedrooms, a part of Sleepwell Bedrooms Ltd, supplying quality beds, wardrobes, sliding door wardrobes and bedroom furniture at low prices and great service, London and Home Counties Specialists.

Door Handles UK

Door Handles UK Logo
Door Handles UK is the UK's largest online range of Door Handle accessories, Door Hinges, Locks and Latches and so much more and all at genuine internet prices. We have a wide range of Chrome, Brass and Glass Crystal Mortice door knobs in both traditional and contemporary designs, whatever your taste and budget you will find a design to suit.

Woodlands Furniture

Woodlands Furniture Logo
We are an established family business situated in rural Herefordshire specialising in beautiful handcrafted classic reproduction furniture. Our comprehensive ranges are readily available from stock.

Join our directory aboutproperty.co.uk

Twitter

Join the conversation at #aboutproperty

Directory articles

Why increasing amounts of people are opting for house shares

London is an expensive place to live, however, house shares offer you the opportunity to enjoy the hustle and bustle of the capital for a fraction of the price you would pay to live on your own, making them a cost-effective way forward.

Why sliding door wardrobes are the best choice for small spaces

When bedroom space is at a premium, you need to be creative with the furniture you invest in. In terms of the wardrobe, you may want to consider those with sliding doors, as they are the most practical in small bedrooms thanks to the doors.

The durability of mahogany furniture is ideal for the office

For office-based businesses it is vital to invest in high-quality furniture that is both practical and comfortable to use. While there are many products to choose from, the benefits on hand with items made from mahogany mean it is an option you should be certain to consider.