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'Shocking’ Scots sales data underlines importance of empty property rate relief

‘Shocking’ Scots sales data underlines importance of empty property rate relief

The Scottish Property Federation (SPF) has warned whoever wins tomorrow’s election must keep empty property rate relief, after data published today highlighted the perilous state of the Scottish commercial property industry.

Following the news that residential sales in Scotland slumped by 40%¹, further data paints an even bleaker picture for commercial property with the number of sales plunging during the first three months of 2011.

Compared to the previous three months the total value of commercial property sales fell by over 50% (from £828m to £401m), and compared to the same period last year by over 25% (from £610m to £401m).

Such alarming news arriving the day before the Holyrood elections has prompted the SPF to renew its call for empty property rate relief to be maintained whoever emerges victorious.

David Melhuish, director of the Scottish Property Federation, said: “This data really is shocking and underlines just how fragile the Scottish economy is.

“If Scotland is pinning its hopes on a private sector led economic recovery then whoever wins tomorrow must do what they can to create conditions where business can thrive. Empty rates would be a tax on hardship at the worst possible time. The majority of the properties that would be affected would be in areas that are already economically disadvantaged and focused on smaller businesses.”

Dubbed the “bombsite Britain” tax, empty property rates levies full business rates on unoccupied offices, shops and warehouses, and has famously led to many properties being demolished in England since its introduction two years ago.

Melhuish continued: “The fact is that business rates relief where there is market failure, such as empty property rate relief, is a lifeline for many businesses that cannot sell or let disused commercial premises. We must be careful not to penalise failing businesses during this prolonged economic downturn.”

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For more information or to organise an interview please contact:

Paul Sweeney, Media Officer, Scottish Property Federation, psweeney@bpf.org.uk  – 07841 732194

David Melhuish, Director, Scottish Property Federation, dmelhuish@bpf.org.uk – 07841 080989

Notes to editors

1.       http://www.ros.gov.uk/pdfs/ros_statistical_report_jan-mar2011.pdf

2.      Data collected by the Registers of Scotland

3.      Data covers all sales of commercial properties, where applications are received for registration with Registers of Scotland in the period

4.      The data includes both cash sales and properties bought with a mortgage. The analysis includes single sales of blocks of properties to a commercial company

5.      Data will not include major one off shopping centre transactions whereby a company might have been transacted as much as a property.  Therefore Land Secs £140mn purchase of Dundee’s Overgate Centre is not included in the figures, but neither is the Hammerson / Canadian £300mn purchase of Silverburn in late ‘09/ early 10