The empty buildings tax runs the risk of becoming an unfair tax according to Andrew Warde, rating consultancy director with NB Real Estate.

The tax was brought in to try and curb the number of landlords who were letting commercial properties stand empty while property prices were increasing. The tax was announced last summer but was not brought in to effect until April 2008. In the intervening months the commercial property market has begun to feel the affects of the downturn in the economy. In a recent survey NB Real Estate projected that since coming in to force there has been a 15% increase in the numbers of vacant properties.

Warde told PIN: “The Government should accept its responsibility to take steps that avoid rates becoming an unfair tax. Vacancies can happen to any property, not necessarily because it is unfit for purpose. For a property investor to lose income in the present market causes difficulty enough, but the position is now being made more serious by inflexibly applied rates costs.

“The Government is counting on ratepayers and their pressure groups having difficulty in putting together specific evidence that paints a picture of the difficulties being caused. Property owners are becoming trapped over liability for rates on some buildings that cannot be let in the present market on the one hand and on the other have become unsellable due to the rate costs.”