When it comes to owning and managing commercial property, one of the key considerations for landlords is the payment of business rates. These rates are charges levied by local authorities on the occupiers of non-domestic properties, and they play a crucial role in funding public services and infrastructure. However, for owners of empty listed buildings, the issue of business rates can become particularly complex and contentious.
Listed buildings are those that have been placed on a statutory list of buildings of special architectural or historic interest. Due to the historical and cultural significance of these properties, they are often subject to additional planning restrictions and regulations. This can make it difficult for owners to find suitable tenants or to secure planning permission for alterations or renovations.
In the case of empty listed buildings, owners are still required to pay business rates even if the property is not generating any income. This has led to criticism from property owners and industry groups, who argue that the current system places an unfair burden on those who are trying to preserve and protect our architectural heritage.
One of the main reasons why business rates on empty listed buildings are so contentious is that they can be significantly higher than those on non-listed properties. This is because the rateable value of a property is assessed based on its rental value, and listed buildings are often more difficult to let due to their unique characteristics and restrictive planning requirements.
In some cases, the business rates on empty listed buildings can even exceed the potential rental income, making it financially unsustainable for owners to keep the property vacant. This has led to many listed buildings falling into disrepair or being left empty for extended periods of time, which can have a negative impact on the local community and economy.
In response to these concerns, the government has introduced a number of measures to help alleviate the burden of business rates on empty listed buildings. One of the most significant changes came in 2017, when the government announced that owners of empty properties with a rateable value of less than £2,900 would be exempt from paying business rates altogether.
While this was a positive step, many property owners feel that the threshold is still too low and does not provide enough relief for those struggling to maintain historic buildings. Additionally, the exemption only applies to properties that are unoccupied, meaning that owners who are actively trying to find tenants or secure planning permission are still liable for business rates.
Another option for owners of empty listed buildings is to apply for a hardship relief scheme, which allows local authorities to grant a reduction in business rates on a case-by-case basis. However, the criteria for qualifying for hardship relief can be strict, and many owners find the process to be bureaucratic and time-consuming.
In recent years, there have been calls for a more fundamental reform of the business rates system to better reflect the challenges faced by owners of empty listed buildings. Some industry groups have proposed introducing a relief scheme specifically for listed properties, which would take into account the unique constraints and costs associated with owning and maintaining historic buildings.
Others have suggested implementing a system of graded relief, where the business rates payable on empty listed buildings would gradually increase over time, giving owners a period of grace to find suitable tenants or undertake necessary repairs and renovations.
Ultimately, the issue of business rates on empty listed buildings is a complex and multifaceted one that requires careful consideration and balancing of competing interests. While it is important to ensure that owners contribute their fair share towards funding public services, it is also crucial to protect our architectural heritage and incentivize the preservation of historic buildings.
As the debate continues, it is clear that finding a sustainable and equitable solution will require collaboration between property owners, local authorities, and government agencies. By working together, we can ensure that our listed buildings are preserved for future generations to enjoy, while also supporting a vibrant and thriving commercial property sector.