Business rates set to rise on back of 2008

Apr 28 2008 by Tony McDonough, Liverpool Daily Post

LIVERPOOL’S success as Capital of Culture could lead to an increase in business rates for local companies, property experts are warning.

The rating team at the Liverpool office of commercial property agents Knight Frank claim the “massive resurgence” of interest in property, and the regeneration work that has been sparked by 2008 will lead to rate rises in two years’ time.

The firm says that rates are set to rise nationally because they are based on the rental market, which has significantly changed since the last revaluation in April, 2003.

The next valuation will be based on the rental market of April, 2008, and, over that five-year period, rents in Liverpool have soared, boosted particularly by the city’s Capital of Culture success.

As a result, some businesses could see their rating assessments increase significantly, Knight Frank claims.

Martin Howard, partner in charge of the team, said: “Grosvenor’s Liverpool One is nearing completion.

“The new shopping scheme is likely to move the current prime pitch, which could affect parts of Church Street.

“A further issue is that ratepayers have experienced nearly two years of disruption and have the right to make appeals against their current assessments.

“This cannot be done after the event, and the Valuation Office will not give allowances without the appeals or evidence.”

The Government’s new legislation removing rate relief for empty properties also took effect from April 1 this year.

Martin Howard said: “Empty rates relief will be a significant issue throughout the year and companies are increasingly looking to specialist advisors to help guide them through this new legislation.”

Knight Frank is working with several developers advising them how to minimise the impact of the new charges.

The rating team based in Liverpool has expanded, with Sara Owen, formerly at Gerald Eve, joining as business development manager in 2005, and last year business rates specialist and associate David King, also formerly at Gerald Eve, joined the team.

tonymcdonough