Landlords ''opposed to rates relief changes'' - commercial mortgages

03 September 2007

The vast majority of retail landlords oppose changes to empty property rates relief tax outlined in this year''s Budget, it has been revealed.

Research from Hartnell Taylor Cook has found that 95 per cent of property developers and retail landlords say they are against the plans, which would see half rates being applicable for the first three months only, or six in the case of factories and warehouses, according to the Retail Bulletin.

Landlords with commercial mortgages could find themselves suffering as a result, it has been suggested.

"It is likely, if not certain, that owners will react by increasing their service charges, rents and extend lease terms in order to recover from the big tax bills they face when properties are empty," commented Hartnell Taylor Cook rating partner Martin Davenport, writing for the retail bulletin.

Commercial property investors should look at areas they are familiar with rather than automatically heading for high-return regions such as London, Savills suggested last week.