Empty office rates could hit business centre owners
The property firm, Bizspace, is this week suggesting that companies in the north will struggle to find office space when the recovery is in full swing. In 2008 business centre owners who have empty business centres didn’t have to pay business rates thanks to the government’s empty property rate relief initiative.
For 2009/2010 the government have scrapped the initiative stating that business centres with a value of less than 18000 a year do not have to pay business rates. This leaves business centre owners with empty properties over 18000 a year potentially considering demolition or rebranding, leaving a shortage of office space in low value areas.
Bizspace’s Mr. Evans suggests; “By encouraging the early demolition of otherwise useful buildings and discouraging new speculative development, the imposition of EPR means that there will inevitably be a shortage of flexible workspace for the SME sector.”
It seems like the government are determined to tax the upturn in people setting up small business’s but if they tax too early it could leave potential start up companies struggling to find office space.