Response to budget announcement on rates

The Chancellor has announced that he is extending the business rates holiday from October this year to April 2013. The rates holiday first announced in the 2010 budget allows businesses with a rateable value of up to £6,000 a year will be exempt from paying any rates at all for 12 months, with partial relief for properties rated up to £12,000.

The Chancellor says that this will mean 500,000 rate payers or a third of all shops will have no business rates liability until April 2013.

Fiona Shorey, Head of Rating at dohertybaines said "Business rates are the third biggest cost for small businesses, after salaries and rents and while we are delighted to hear the the Chancellor is taking some steps to help small businesses he has made no announcement about any real help for medium sized firms who are really feeling the pinch during the current economic climate".

The Chancellor also announced that he would be offering businesses the option to defer 60% of the increase in their rates bill next year. Fiona Shorey commented that it would be more helpful to revisit how the increases in rates are set. "A spike in inflation in September has led to a 5.6% increase in business rates across the board. A deferment of this increase is little more than covering over the cracks to the system. When this deferment was offered to businesses in 2008 many didn't take up the option because it was seen to involve too much bureaucracy with little benefit".

For more information on your rates bill contact our business rates department.

Screwfix hook Unit 4 Coomber Way, Croydon

Screwfix have recently taken a ten year lease with a break after 5 years at Unit 4 Coomber Way, Croydon.

The scheme, a terrace of 4 units, is now fully let and includes Rexel Senate, Dash Finishers and Balmoral Group on the estate.

The unit was let at a rent of £7 per sq ft.

Please contact Paul Londra of dohertybaines for further information.

Lettings for Blackstone

Unit 5 Colonial Drive, Bollo Lane, W4 has been let to The Original Door Company on a 3 year lease. The property comprises a warehouse/industrial unit of 10,507 sq ft.

For further information, please contact Michael Haines.

Freehold Sales for Hillview

At Genesis Business Park, Park Royal, NW10 Unit 15 (2,115 sq ft) has been sold to Ambros. The unit was a brand new two storey business unit.

For further information, please contact Michael Haines.

SEGRO Lettings across the A40 Portfolio

In Greenford, UB6, Unit 11 Fairway Drive (8,858 sq ft) has been let to Cooper Associates Ltd on a 5 year lease and at Metropolitan Park Unit 45 (3,051 sq ft) has recently completed to Saffron & Saffron Interiors Ltd for a term of 5 years.

At Victoria Industrial Estate, Park Royal, W3 Unit 7 (5,371 sq ft) has been let to VMI.TV Ltd for a term of 10 years.

For further information, please contact Michael Haines.

Wolseley tap into Six Bridges

Plumb centre have taken a 10 year lease with a break after 5 years at Unit C3 Six Bridges Trading Estate, London SE1. The unit was approximately 5,234 sq ft and was fully refurbished prior to marketing. The unit is just off the Old Kent Road and has good road links to the West End and City.

Also recently completed are two north London lettings:

Unit 8 Mowlem Trading Estate, London N17 let to RA Trading on a 3 year lease. This unit was approximately 7,433 sq ft. The last remaining unit on the estate was Unit 15 and this is now under offer. Again both units were refurbished by the landlord prior to marketing.

Units 7, 8 and 9 Crusader Industrial Estate, London, N4 were let as a combinedd unit, to Europride Ltd. The units had an extensive mezzanine across all three units and was let on a five year lease with a break after 3 years.

The last remaining unit on the Crusader Estate is also under offer.

If you require any further details on the above, please contact Paul Londra at dohertybaines.

Only 1 unit left for Canmoor at Vision, W3

Following the successful letting of Units 2 & 4 Vision, only Unit 15 is now available.

Unit 15 is a brand new HQ warehouse of 27,429 sq ft with high quality offices and demised yard and car parking.

Unit 2 (3,835 sq ft) was let to Louise Bradley for a term of 10 years.

Unit 4 (4,646 sq ft) was let to Chevalier Technologies for a term of 10 years.

For further information, please contact Michael Haines.

More Letting for SEGRO across the A40 Portfolio

At Acton Park, W3 Unit 33 (8,671 sq ft) has been let to Allan Reeder for a term of 10 years.

Units 10 & 14 Victoria Industrial Estate, W3 have also been let. Unit 10 (7,317 sq ft) has been let to The Soundhouse for a term of 15 years and Unit 14 (3,164 sq ft) has been let to Visual Impact for a term of 5 years.

Medco Health Solutions have taken 27 Greenford Park, UB6 (3,995 sq ft) for a term of 6 years.

For further information, please contact Michael Haines.

Inflation reaches record levels sparking fears of business rates hike

RPI increased from 5.2% in September sparking fears of a spike in the tax if the Government continues to use September's RPI rate to set the rates multiplier. If the increase goes ahead businesses will face the biggest increase in rates in over 20 years.

The Uniform Business Rate will rocket from 43.3p to 45.7p per £1 of rateable value. London firms will face rates nearing 50p in the £1 for the first time as a result of the additional 2p rate levied to help pay for Crossrail.

The increase will affect all businesses as well as owners of empty premises. Being prepared for the increase will help with the burden, dohertybaines can provide free budgets for your business rates liabilities and advise on ways of mitigating this tax.

Please contact Fiona Kelly to discuss your liability further.

Rating Reform in Scotland

The Scottish Government announced various business rates measures in its recent Budget which have potentially serious implications for Scottish property owners and occupiers. The most relevant is the reform of empty rate relief which it appears is being reduced dramatically.

At the moment vacant commercial properties in Scotland benefit from 100% rates relief for the first three months they are empty and unoccupied, followed by 50% relief thereafter. Vacant warehouse and industrial premises and listed buildings pay no empty rates. Mr Swinney announced that empty rates relief will be reformed in Scotland from April 2013 claiming that this is 'to provide strong incentives to bring vacant premises back into use, reducing the prevalence of empty shops in town centres and supporting urban regeneration'. Similar claims were made prior the major reform of empty rates relief in England and Wales in April 2008 and there is no evidence that the removal of rates relief after a short rates free period (6 months for warehouse/industrial property and 3 months for other commercial property) has reduced the number of vacant units.

It is not clear whether the Scottish Government intends to replicate the empty rates rules in England and Wales.

The only announcement that may be good news to Scottish businesses is the intention to continue the support of small businesses through the Small Business Bonus Scheme, whereby 74,000 businesses occupying small properties benefit from nil or reduced rates liabilities.

If you would like more information on your rates liability for property anywhere in the UK, please contact me and I would be happy to advise further.

Fiona Kelly

fkelly@dohertybaines.com