Insurance News Archive

Rate relief may have 'limited impact'

The commercial real estate market may not benefit as much as was hoped from the empty rate relief changes, it has been suggested.

As part of the pre-Budget report it was put forward the property perk for vacant buildings will be introduced.

However, the Royal Institution of Chartered Surveyors (Rics) commented it may only have a "limited impact" for the sector.

In a statement from the body it is claimed the measures will be a help to small firms renting commercial property, but will still affect larger companies.

The group went on to say: "The change is unlikely to prevent the unnecessary demolition of large buildings in the current economic condition leaving our towns scarred by piles of rubble."

Meanwhile, other issues addressed in the report include the problem of home repossession, with Rics stating the government should put plans in place to help those behind on mortgage payments.

Recently, a spokesperson for the Forum of Private Business suggested the abolition of rate relief for vacant properties had a "significant impact" on the industry.

26 Nov 2008