Demolition set to boom as developers duck empty property tax

Empty buildings are being reduced to rubble as owners seek to duck the government’s full business rate on empty commercial property.

One-fifth of Sunderland’s Alexandra Business Park has a date with the wrecking ball and another 3,400m² of the almost 70,000m² park is to go.

Its owner O&H Q7 would have been asked to pay more than £150,000 a year in business rates.

Landlords now have to pay full business rates on empty commercial property, following a three month grace period – previously they got a 50% tax relief.

According to the Independent, moves are afoot to remove the tax, with the British Property Federation’s campaign against the rate gathering steam.

Halifax MP Linda Riordan also has the support of 35 MPs to table an early day motion to reintroduce empty property tax relief.

MPs fear the mass demolitions will make it hard for small firms to find affordable and temporary office space when the credit crunch lifts.