Lambert Smith Hampton and the Royal Institution of Chartered Surveyors’ Empty Property Rates Survey points to empty rates liability as the biggest single factor in the demolition of industrial buildings at present.
Richard Wackett, LSH’s director of rating, said: “The industry believes that the demolition of property will increase significantly in coming months as the recessional plight of business is exacerbated by growing EPR debts.
“Many property owners are now left with no option but to demolish buildings that are sitting empty – generating large EPR bills, but no income. This will leave the commercial property market with a shortage of stock when demand picks up.”
The consensus of the 600 property professionals, involved in the survey, is that the government’s goal to provide an incentive for owners to return vacant buildings to use, has been highly unsuccessful.