Rate relief has been removed, but don’t panic

9:23am Tuesday 8th April 2008

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PROPERTY developers and agents need not panic over the Government's removal of rates relief on empty buildings, according to Worcestershire's Property Service.

From this week, office buildings will no longer qualify for half rates after three months of being empty - six months for warehouses and factories.

The Government hopes the controversial move will dissuade investors from sitting on derelict property, but its actions have come under fire from property agents, who fear it will discourage speculative investment.

However, Worcestershire's Property Service (WPS), the county council-run service that helps businesses looking for premises in the area, believes the county is in a strong position.

"Naturally, this move has been met with much criticism, but we feel that Worcestershire's commercial property market is strong and will weather this setback," said Geoff Palmer, of WPS.

"Everyone across the country is going to be in the same position, but Worcestershire has the advantage of being in demand.

"Figures we released last year showed that property enquires rose every month, and were almost double those from the previous year.

"With an excellent grounding like this, the county is on a good footing for future development."

Charles Robinson, of Worcester-based estate agents, chartered surveyors and auctioneers, Griffiths and Charles, said: "I think this could actually stimulate property owners into doing something as opposed to sitting on empty property.

"So while some people might focus on the negative aspects of this move, this could also be a positive vehicle for keeping valuable commercial property in business use.

"It will also ensure property owners keep their rent to a sensible level."