News

2010-09-01 : Empty Stores Blight the High Street

Researchers have found that two in five former Woolworths' stores are still standing empty, following its fall into administration in November 2008. Even though several familiar names have already taken most of the prime retail sites, more than 300 of these stores are still un-occupied.

One reason could be that the long established firm may have occupied the same shop for a great number of years. The private landlords who own them have struggled to re let some of these properties, especially the ones that have not been refurbished or are in a state of dilapidation. In 2008, the rules on empty rate relief were tightened and given more rigid timescales. Some owners allowed their stores to run into disrepair rather than spend money to attract new tenants, an action the government had hoped to minimise when it altered the relief.

Previously, when an application for empty property relief was made, the council would grant three months relief on business rates, with a possible further relief of 50% on the rates for a specified term, but it was all subject to the council's discretion. From 1^st April 2008, this was amended to only  three months relief on business rates at the local council's discretion.

Combined with the current turbulence in the market place, it may be that these empty stores will remain commonplace for a while longer yet.

Ruddle Merz have helped many clients reduce their rate liability on empty properties. For a free Business Rate Review please contact the team on 0800 883 0353 or email enquiries@ruddlemerz.co.uk