Insurance News Archive

Commercial property sector 'will be hit by rates rise'

The five per cent rise in business rates will hit occupiers and investors in the commercial property sector when it comes into force at the beginning of April, according to an expert.

Sean Brew, director in portfolio asset management at global real estate adviser DTZ told PropertyWeek that renters are unlikely to have budgeted for such an increase as they are having to carefully manage their cashflow.

"From the occupiers' perspective, this is another rise in the costs of occupation which they can ill afford," he says.

Mr Brew tells the news provider that the rise is likely to raise concerns among commercial property investors regarding "the ongoing viability of their occupier base", as they have already been hit by renters going out of business.

The Forum of Private Business is among the industry bodies to have urged the government to suspend the five per cent increase, but Lord Peter Mandelson has so far rejected the calls.

30 Mar 2009