What difference will two years make? The last business rates revaluation was in 2010. The next one should have been 2015 but it has slipped a couple of years and will now take place in 2017. However, the rateable values for commercial properties will be based on information gathered by the Valuation Office this year. So the key date will be 1 April 2015 and what annual rental values were then.
Had the revaluation taken place every five years as scheduled, the rental values would have been those of 2013 not 2015. In terms of how far the economy has recovered in this two-year period, the April 2015 date takes on a whole new significance.
Reports over the past year indicate that rental values are now rising as a result of the economy growing, with property rental value increases in September 2014 hitting some monthly highs not seen since 2007. Market intelligence also suggests that there is an upswing in rental values.
Paul Giness of The Beattie Partnership has a firm view on these figures, “If you compare this to the news in December 2008, which predicted that the value of UK commercial property would have more than halved by the end of the decade, you get a real sense of an underlying momentum to commercial rental recovery.”
But growth in this area brings with it certain disadvantages. Because with 2015’s rental values forming the basis for the 2017 revaluation, this leaves commercial properties open to having higher rateeable values than they would have if their rental values had been assessed back in 2013.
“Clearly a business rates revaluation on the back of a recovery is going to be very different to one conducted in harder times,” Paul concludes. “It is absolutely crucial that business owners are aware of any factors which might have a negative impact on their commercial rental value as at 1 April 2015. This is where expert professional advice on business rates can make such a difference.”
If you require further guidance on your Business Rates revaluation, please contact The Beattie Partnership on 0161 228 2224 or visit their website.