The scrapping of empty rate relief...worst thing labour have ever done?

openside

For the economy that is

And I include the multi billion pension grab, other stealth taxes and Mandelson as business secretary

This incredibly stupid act is destroying the construction industry leading to 'bombsite Britain' in our industrial centres as empty industrial units are demolished to avoid paying this stupid tax the cancellation of commercial construction projects hundreds of thousands of jobs lost and at risk

If I didnt know better I would say that they are deliberately stting out to destroy the country

Rant over:A

1echidna

Do you have a personal interest?

fc123

openside wrote: »

For the economy that is

And I include the multi billion pension grab, other stealth taxes and Mandelson as business secretary

This incredibly stupid act is destroying the construction industry leading to 'bombsite Britain' in our industrial centres as empty industrial units are demolished to avoid paying this stupid tax the cancellation of commercial construction projects hundreds of thousands of jobs lost and at risk

If I didnt know better I would say that they are deliberately stting out to destroy the country

Rant over:A

I disagree in some ways as it will encourage landlords of vacant properties to get them let asap rather than keep rents arificially high as prior, keeping property vacant didn't cost them anything.

Helps create new true 'values' too.

I can only speak from a retail commercial property perspective.....perhaps the new rules weren't thought through properly (there's a surprise) and they didn't anticipate companies flooring sites as they couldn't pay. But that's civil servants for you. They don't understand how real business works.

openside

Do you have a personal interest?

I am in the construction sector so its a related issue, but this effects us all

Thing is fc owners of empty buildings used to be able to claim empty rate relief after a period, a very sensible rule, this has been totally scrapped for ALL types of commercial property including incredibly industrial units

Wharehouses office blocks industrial units are now being pulled down in their hundreds by owners faced with bankruptcy by rates demands of £50k+ on buildings they are finding it is impossible to get tenants for

The double whammy is that there will be virtually no new office/industrial construction projects as what developer in his right mind would invest now if he knew that on completion if he was unable to find a buyer or a tenant he would be bankrupted within a few years by huge rate bills which wouldnt have happened previously as you only started paying when the building was let

Absolute madness

CLAPTON

could you give us some typical figures

cost of land
cost of building new buildings
cost of rates
rental income

etc.

fc123

openside wrote: »

I am in the construction sector so its a related issue, but this effects us all

Thing is fc owners of empty buildings used to be able to claim empty rate relief after a period, a very sensible rule, this has been totally scrapped for ALL types of commercial property including incredibly industrial units

Wharehouses office blocks industrial units are now being pulled down in their hundreds by owners faced with bankruptcy by rates demands of £50k+ on buildings they are finding it is impossible to get tenants for

The double whammy is that there will be virtually no new office/industrial construction projects as what developer in his right mind would invest now if he knew that on completion if he was unable to find a buyer or a tenant he would be bankrupted within a few years by huge rate bills which wouldnt have happened previously as you only started paying when the building was let

Absolute madness

One of those 'unforseen consequences' that always seem to crop up after legislation is brought in.

On the other hand, is there still enough demand for all these new industrial units?

We have leased retail commercial property for 20 years and the rise in business rates has been huge.

In terms of retail units, big error was exempting only business under 15k. Should have had a higher value plus applied to any business trading from only one property.

Councils are also reluctant to let owners covert small commercial to residential as the Govt lose so much tax. Huge difference in council tax payable to business rates.
Much small retail that is abandoned now will never be suitable for retail again.

openside

No I couldnt clapton thats not my area

I work mainly on large commercial construction projects (Office blocks the Olympics now), non industrial/domestic sites

have finished some work at British lands new HQ in Marble arch and they are seething over the effect this having in a) their business and b) the general economy

The fall off in investemnt from overseas because of this stupid act is simply astounding, tens of billions lost, if the government wanted to deliberatly add 500,000 to the dole queues i cant think of a better way they could do it

Are they secretly in the employ of a hostile foreign power do you think? :-)

openside

One of those 'unforseen consequences' that always seem to crop up after legislation is brought in.

On the other hand, is there still enough demand for all these new industrial units?

We have leased retail commercial property for 20 years and the rise in business rates has been huge.

In terms of retail units, big error was exempting only business under 15k. Should have had a higher value plus applied to any business trading from only one property.

Councils are also reluctant to let owners covert small commercial to residential as the Govt lose so much tax. Huge difference in council tax payable to business rates.
Much small retail that is abandoned now will never be suitable for retail again.

Im in the same boat FC, I along with my business partner own the freehold on a building that has a flat leased out upstairs and an office on the lower floor converted from a shop, (nothing fancy just your typical little shop unit) the council will not allow a reversion to office use as, as you say they will lose money, (I realise you were lookinging for change from commercial to residential, its the same re retail to commercial as they get more from retail rates) have no gripes with that as we knew what we were buying

The exemption btw only lasts for 1 year as I understand it?

The government will probably get in a few hundred million extra but lose tens and tens of billions in new investment job losses you name it, nobody in the industry can comprehend why they have done it unless they are truly incompetent, or more likely more deperate for money than they are letting on

fc123

openside wrote: »

The government will probably get in a few hundred million extra but lose tens and tens of billions in new investment job losses you name it, nobody in the industry can comprehend why they have done it unless they are truly incompetent, or more likely more deperate for money than they are letting on

You have probably answered your own query there..

The commercial use converting to resi will happen one day for sure..just takesa decade or so for them to wise up.

I wrote about an old LL of ours from years back who took a chance on industrial riverside land/buildings in the late 80's/early 90's. He is a very wealthy bloke now..and was always a decent chap too.

B+B's are the next casualties....councils won't let owners convert back to a house.

openside

The commercial use converting to resi will happen one day for sure..just takesa decade or so for them to wise up.

With the death of the high street shop, something will have to be done you are right, conversion from retail to commercial and commercial to residential might be the only way to regenerate what will soon start to look run down areas

Property might get a boost too iof they let people buy residential property with their SIPPS, instead of the carve up now where they insist we put the money with pension funds who take their massive commisions from our investments!

(wonder how many mp's are on their boards)
Im in rant mode tonight!

1echidna

We had a thread not long ago about bulldoze and rebuild (some ref to what might happen first in the US)