This site uses web cookies · Read our Policy here
UK Free: 0800 047 0597 - Int.: (+34) 952 198 657 - Singapore: +65 6589 9150 - US Free: +1 866 656 7152

Autumn Statement Brings Good News for Commercial Property Market

First name: 

 

Last name: 

 

Tel. Number: 

IPIN Disclaimer.

  We never share your data with any third parties.

Note: IPIN investment opportunities are available subject
to location and / or certain suitability criteria.

News by Category

Archives

Read More News

United Kingdom  Commercial property  Jones Lang LaSalle  Tim Beattie  Property Rates 

By - Monday 10 December 2012

Autumn Statement Brings Good News for Commercial Property Market

Wednesday's (December 5th) Autumn Statement brought good news for the commercial property market in the UK and there is hope that the changes will lead to further growth. Jones Lang LaSalle claims that the decision to exempt all newly built commercial property completed between October 1st 2013 and September 30th 2016 from empty property rates for the first 18 months will help to promote private investment. The exemption will apply up to the state aid limits and is currently subject to consultation.

Tim Beattie, lead director, rating at Jones Lang LaSalle, stated: "Subject to the detail of the consultation process and the state aid limits, [we] could clearly see some speculative schemes being started sooner rather than later but there will also be a tension between these provisions and the localism agenda enshrined in the Local Government Finance Act 2012.  Billing Authorities are expected to take a keen interest in new development in their area after April 1st 2013 because they will benefit from the increased tax take."

Nevertheless, the measure has been welcomed and property investment in the UK is expected to be revitalised over the coming years. The move to extend the temporary doubling of the Small Business Rate Relief scheme is also hoped to stimulate improved market activity. The scheme will now run for an additional 12 months from April 1st 2013.

Further positive news was provided in the announcement that the government will extend the temporary doubling of the Small Business Rate Relief scheme for a further 12 months from April 1st 2013.  However, this follows calls from "hard pressed retailers and local businesses" to reverse the decision to postpone the 2015 Revaluation to 2017, Mr Beattie explained. This means that the benefits that a Revaluation brings to these businesses are delayed, in what has been deemed an "ill thought out decision".

"The next revaluation would re-distribute the rates burden in line with current economic activity thus easing the pressure on high streets in particular," Mr Beattie claimed, which would in turn provide an economic boost.

Subscribe to IPIN Live by Email - Get our News & Blog updates delivered directly to your inbox - click here

Glossary

Visit Our Investment Terms Glossary


Comments

 

*This page is provided for information purposes only and should not be construed as offering advice. IPIN is not licensed to give financial advice and all information provided by IPIN regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.