Landlords Set to Face Empty Property Tax

A new empty buildings tax could see landlords facing a bill of £142 million.

The tax, which came into effect this spring, was proposed as way to dissuade owners from keeping their properties empty and force them to find tenants.  It is currently expected to raise close to £950 million in additional revenue for the government.

According to a report by property consultancy NB Real Estate the number of un-let commercial properties has gone up 22 percent in the last two years.  March 2008 saw 9.3 percent of properties standing empty.

Real estate that has been empty for three months or more will no longer receive rates relief and owners must pay the new tax.

Andrew Warde, a director at NB Real Estate, said the new tax is "heaping misery upon misery" to property owners struggling in a stagnant market.

He said: "The government's belief that landlords keep buildings empty without good reason is just plain wrong and the blanket application of additional rates tax just doubles the pain.

"In the longer term landlords will simply demolish empty buildings which are particularly difficult to let rather than pay this tax, a wasteful loss of properties that might otherwise be refurbished when market conditions are right."