Graham Green, Commercial Property Solicitor at Fraser Brown says,
“The Rating (empty properties) Act is certainly having a far reaching effect on the commercial property market and it is estimated it will cost the industry around 1 billion pounds. Along with the recession it’s having a big impact on the negotiating positions of the seller and landlord.
There is no doubt that the new measures are providing an added incentive for landlords to either sell or let their properties quickly and it is clear from deals we have been recently instructed on that landlords are having to accept reduced rents and agree to rent free periods in order to do this.
Also, some sellers and landlords are considering offering to pay business rates for certain periods. Usually tenants will be contractually bound to pay the rates at the start of the lease term, but given the current circumstances landlords may well have to actually offer to refund the amount rates to their tenants or buyers for a limited period (or likewise to a buyer).
Whilst the Government claim that these measures are aimed at encouraging the use of empty properties, bodies such as the Royal Institute of Chartered Surveyors have described them as “purely a revenue raising exercise with no thought of the potential consequences”.
We are increasingly hearing the view from our clients that given the current level of recession (which is likely to deepen), the government ought perhaps to consider suspending this recent legislation until the commercial property market has begun to show some sort of recovery.”
Fraser Brown is a dynamic law practice working at premises in Nottinghamshire through its branches in Nottingham, Radcliffe on Trent and Bingham.
Its philosophy is to deliver superior legal advice through a personal and highly professional service for both commercial and private clients. Since 1990, Fraser Brown has acquired eight established and respected local firms as part of its major growth strategy for doing business in the 21st Century.
Fraser Brown is one of the region's longest established firms of solicitors. Over the last 12 months, it has experienced significant growth in areas such as property, contract work, construction and general litigation.