A new Rating List comes into effect on 1st April 2010 which will be based upon values as at 1st April 2008. It is believed that commercial rental values have risen throughout England, in the five years up to April 2008, as much as 21%. This will give rise to an overall increase in the liability of 8% despite the fact that the post-April 2008 rental market has shown signs of stagnation, even decline, with the onset of the economic recession.

 

Smith Price are therefore concerned that the new rating value will not reflect the current economic climate. Shops in central and outer London, along with a number of major regional centres, will be most severely hit by the revaluation with rates liabilities perhaps rising as much as 15%. Those in the south-east will also endure significant uplifts. Outside London and the south-east, high street rental growth has been varied meaning some major cities might even expect lower rates bills.

 

Shopping centres have only shown modest rental growth yet there is likely to be a substantial regional variation. Schemes in the south are likely to be confronted by major uplifts whereas those in the north might see flat or even falling liabilities. In addition, retail warehousing and fashion parks are also likely to be hit with major uplifts while bulky goods parks may benefit due to sluggish rental growth.

 

It is the first time that rating values will be a major issue for both tenants and landlords, in view of empty rates liabilities, therefore any parties requiring advice should contact Smith Price.