Commercial mortgage holders 'must be offered rates relief'

06 May 2011

Written by Steve Olejnik

Access to empty property rates relief for commercial mortgage holders in Scotland must not be removed, the Scottish Property Foundation (SPF) has warned.

The body argued that the winner of the Scottish elections - which looks set to be the Scottish National Party - should ensure rate relief is not removed, as doing so would place further strain on a "fragile" economy.

Figures from the Registers of Scotland show the total value of commercial property sales was down by over 50 per cent to £401 million during the first quarter of 2011 when compared to the final three months of 2010.

Director of the SPF David Melhuish said the "shocking" figures highlight the perilous state of the country's finances.

"Empty rates would be a tax on hardship at the worst possible time," he remarked, adding that if the Scottish government is "pinning its hopes on a private sector-led economic recovery" then the elected party must do everything it can to assist businesses.

From April 1st, rates relief for empty properties in England with a rateable value of under £18,000 was removed by the government, a move that was criticised by the British Property Federation.

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