The increase in empty property taxes heralded in April’s budget will lead rents down one of two routes, as asserted in the Wall Street Jounal.
Landlords of empty office spaces will be particularly hard hit by this new tax which will force them to decide whether to either drop rents in the hopes of attracting new tenants or tear down office spaces that may otherwise lay vacant.
The tax change “may lead to forced sales or lettings [rentals] at much lower prices,” according to Harm Meijer, a property analyst at J.P. Morgan Chase. “Both are now unwelcome in the current uncertain property climate.”
Brixton PLC, a real-estate investment trust, said that this change will cost them an extra £5m in taxes – the equivalent of 7% of its rental income.
Tags: Brixton PLC, Empty office tax, Office Space, vacant office space