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08/09/2008
Public sector 'affected' by empty rates legislation |
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The public sector will suffer as a result of the empty rates bill, Propertyweek.com reports.
According to a rates expert, public organisations such as the NHS and Ministry of Defence (Mod) will not be exempt from paying rates on empty property.
Previously, the public sector would sell unused land to housebuilders and make healthy profits from it.
However, the credit crunch has had an impact on the value of land, which according to Savills has dropped by over 20 per cent, so developers have stopped buying.
Now, organisations such as the NHS and Mod are not only missing out on these additional revenue streams, they also have to pay rates on an increasing number of empty properties.
Commenting on the current situation, Steve Turton, director in Atisreal's rating team, said: "While the impact of empty rates in relation to vacant specialist public sector buildings can be limited by appeal action, empty rates will still affect this sector and it is a major blow to the public purse in a time when funding is difficult to come by."
Last month, Swindon council admitted that its empty rates bills could force it to demolish buildings to avoid payment. |
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