empty building rate relief refers to the temporary relief provided to property owners who have vacant commercial buildings. This relief allows property owners to avoid paying business rates on their empty properties for a certain period of time. The intention behind this relief is to encourage property owners to bring vacant buildings back into use, thereby revitalizing and adding value to the local area.
The empty building rate relief scheme was first introduced in 2008 as part of the Government’s efforts to stimulate the economy during the financial crisis. The scheme was set up to provide relief to property owners who were struggling to fill their vacant properties due to the economic downturn. Since then, the scheme has been extended and revised multiple times to provide ongoing support to property owners facing difficulties in filling their vacant buildings.
One of the main benefits of empty building rate relief is that it gives property owners some breathing space while they market and find tenants for their vacant properties. Without this relief, property owners would have to pay business rates on their empty properties, which can be a significant financial burden, especially for those struggling to find tenants in a tough market.
Additionally, empty building rate relief is a positive incentive for property owners to invest in improving their vacant properties to make them more attractive to potential tenants. By providing relief on business rates, property owners are encouraged to invest in refurbishments and upgrades to their vacant buildings, which can make them more appealing to potential tenants.
Moreover, empty building rate relief can also have wider benefits for the local community and economy. By encouraging property owners to bring vacant buildings back into use, the scheme can help to revitalize and regenerate areas that have been blighted by vacant properties. This can have a positive impact on local property values, attract new businesses and residents to the area, and create a more vibrant and dynamic community.
However, empty building rate relief is not without its criticisms. Some argue that the relief encourages property owners to keep their buildings empty for longer periods in order to avoid paying business rates. This can have a negative impact on the local area as vacant buildings can attract vandalism, squatting, and other antisocial behavior. Additionally, empty buildings can detract from the overall appearance and desirability of an area, which can deter potential investors and businesses from moving in.
Another criticism of empty building rate relief is that it can be seen as a subsidy for property owners who are not actively using their properties. Critics argue that property owners should be incentivized to actively market and find tenants for their vacant buildings, rather than simply receiving relief on their business rates. This would help to address the issue of vacant properties more effectively and encourage property owners to take more proactive steps to bring their buildings back into use.
In response to these criticisms, some local authorities have introduced measures to encourage property owners to actively market their vacant properties in order to qualify for empty building rate relief. For example, property owners may be required to provide evidence of their efforts to find tenants, such as marketing materials, viewing logs, and rental histories. This helps to ensure that property owners are actively working to fill their vacant buildings rather than simply benefiting from the relief without making any efforts to bring their properties back into use.
Overall, empty building rate relief can be a useful tool for property owners who are struggling to fill their vacant properties. By providing temporary relief on business rates, property owners are given the breathing space to market and find tenants for their buildings, while also being incentivized to invest in improvements to make their properties more attractive. However, it is important that empty building rate relief is carefully managed to ensure that it is not abused and that property owners are actively working to bring their vacant buildings back into use for the benefit of the local community and economy.