Business rates revaluation: Supporting the recovery of UK secondary property
The business rates regime in the United Kingdom has faced increased opposition in recent years. A tax typically faced by property occupiers, and broadly based on annual rent, opposition has been most vocal in secondary locations where business rates have been rising at a time of low economic activity.
As the UK economy returns to growth, the clamour for action may fade, but for investors the impact of rates should not be forgotten. For many occupiers, rates are a key consideration in deciding where and how much space to take. With this in mind, the planned revaluation in 2017 is likely to provide considerable support to parts of the secondary property market, particularly retail, while reducing the relative appeal of certain prime assets and locations.
Although there seems to be a keen desire to reform the rates regime, this is unlikely to occur in advance of 2017. However, irrespective of reform, the outlook remains one of a rebalanced tax burden that supports both oc