An investigation into the effects of business rates revaluation on retail property in London and the South East post recession

Sitalo, Zanna (2010) An investigation into the effects of business rates revaluation on retail property in London and the South East post recession. BSc dissertation, University of Portsmouth.

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    Abstract

    This research project concentrates on the impact Revaluation 2010 is expected to have on retail property market and occupiers in London and South-East region post recession. The property rating revaluation due to come into effect on the 1st of April 2010 is one of the major stories for the property market because it has fallen at a particularly vulnerable time for businesses all around the UK. A number of radical changes have occurred in the fortunes of retail development during past few years which has led almost to stagnation. The UK banking crisis made banks very reluctant to provide loan facilities to commercial property development and alienated investors. Capital values of properties fell to 50% in many secondary retail locations due to falling consumer demand and administrations, affectingowners and occupiers. Meanwhile, government legislation has done little to improve this situation and support retailers. Many businesses are expected to be punished with increasing rates liabilities for next five years. This is made worse by accompanying rises in a range of business rates levies, including empty property rates and various business rate supplements. In the present recessionary climate, any growth in rates liability as such will add to costs and have a detrimental effect on businesses. The survey carried out with the landlords and tenants of retail premises for the purpose of this investigation suggested that people who will be affected by revaluation believe that business rates must not be seen as a simple and predictable mechanism to raise revenue to fill voids in the public finances, especially at a time when economic fragility and recession affected many organisations and property industry as a whole. It is therefore concluded that although VOA and DCLG have delivered new valuation list to the highest possible standard and have implemented new strategies and legislation to help retailers, overall they have done relatively little to contribute towards sustainable economic recovery of the retail sector from recession.

    Item Type: Dissertation
    Departments/Research Groups: ?? EDAM ??
    Depositing User: Jane Polwin
    Date Deposited: 20 Jan 2011 12:49
    Last Modified: 28 Jan 2015 11:16
    URI: http://eprints.port.ac.uk/id/eprint/1007

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