New legislation targets empty commercial property commercial mortgages

11 May 2007

New government legislation has been announced seeking to get disused commercial properties in the UK back in use, in a bid to revitalise local communities and make premises available to businesses.

It is hoped that the legislation will help provide good commercial property opportunities for businesses across the country. Ultimately, it could result in a boost in commercial mortgages uptake as more properties become available.

Announced by local government minister Phil Woolas, the legislation also seeks to modernise business rate relief for empty premises, encouraging the redevelopment, sale or use of empty properties.

Currently, most empty commercial property receives 100 per cent tax relief, a situation that the government deems unjustifiable when UK office rents are significantly high.

"No-one wants to live or work next to an empty property, and it is frankly daft for the state to subsidise it when commercial rents are so high," explained Mr Woolas to 24 Dash.

"That is why a package of reforms that will drive down those rents, encourage business growth, and promote brownfield development is needed."