Empty rates shrink the property market
For the first time since government records on the subject began in 1998, the amount of available commercial property in the UK has fallen, according to research by NB Real Estate.
The company, part of Capita Symonds, says that in 2008 around 1.2m sq metres of commercial property were taken out of the UK property sector, after some owners demolished empty buildings that had become a liability under empty rates legislation. The research reveals that much of the net losses was among former factory sites.
A second factor behind the decline is of course the economic downturn, which has put the brakes on the development of new commercial property.
NB Real Estate warned at the start of March that increases of more than 20% in business rates for some central London landlords this month could accelerate the demolition of empty buildings.
