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King Sturge

“BUSINESS RATE BOMBSHELL” TO HIT SOUTH WEST COMPANIES

King Sturge expert warns of flood of appeals next year 

Commercial property occupiers and owners in the South West have been warned to brace themselves for a “business rate bombshell” in the spring.

The latest revaluation in Business Rates means that thousands of companies will have to carry a major new financial burden from 1st April 2010, according to an industry expert.

And Tim Western, partner in the business space team at international property consultants King Sturge, says the revaluation could prompt a flood of appeals from businesses as the region struggles to emerge from recession.

“This amounts to a ‘double whammy‘ for commercial property owners when you also take the empty rates burden into account,” said Mr Western.

“The problem is that the new rateable values are based on values in April 2008, when the economy was still buoyant. Since then values have fallen dramatically and we have gone into recession, yet still businesses will be asked to find the finance for what will in many cases be a massive increase in their business rates.

“The ‘Exe Box‘ for example, which is Exeter‘s largest distribution building, will see its rateable value soar from £444,000 to £550,000.

“Meanwhile in Plymouth, Western Mortgage Services, which has three floors within the Money Centre, has seen its rateable value rise from £295,000 to £395,000.

“The effect of all this will be to put some buildings out of reach, and to harm rental growth, so this bombshell could not have come at a worse time.

“I predict that the Valuation Office will be inundated with appeals on 1st April, many of which could take years to settle due to the sheer volume. In the meantime rates will have to be paid on the new rateable values.”

ENDS  2nd December 2009

For further information please contact Neil Fraser, Sturgess Van Damme, on 01275 349011 or email neil@sturgessvandamme.co.uk

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