Empty listed buildings hold a unique place in our architectural history, preserving the past while waiting to be repurposed or restored for future use. However, these vacant properties often come with a hefty financial burden in the form of business rates. Business rates are taxes levied on non-residential properties in the UK, including empty listed buildings. In this article, we will explore the implications of business rates on empty listed buildings and the challenges they present to owners and developers.
Listed buildings are structures that have been deemed as having special architectural or historic significance by the government. These buildings are protected by law, meaning that any changes or alterations must be approved by conservation officers to preserve their historical integrity. While these buildings play an essential role in our built environment, they also come with unique challenges, including maintenance costs, restrictions on alterations, and the burden of business rates on empty properties.
One of the most significant challenges facing owners of empty listed buildings is the financial burden of business rates. Businesses rates are taxes levied on non-residential properties based on their rateable value. For empty properties, including listed buildings, the rates can be as high as 100% of the property’s rateable value after a certain period of vacancy. This can place a considerable strain on owners who are already facing the costs of maintaining and securing a vacant property.
The issue of business rates on empty listed buildings is particularly pressing in the current economic climate. The COVID-19 pandemic has led to an increase in vacant properties as businesses struggle to stay afloat, leaving many listed buildings empty and vulnerable to financial pressures. Owners of these properties are faced with the challenge of balancing the preservation of historic buildings with the financial realities of business rates, making it difficult to find a sustainable solution for their properties.
In addition to the financial burden, business rates on empty listed buildings can also hinder the future development and use of these properties. The high costs associated with holding onto an empty listed building can dissuade potential developers or investors from taking on these projects, leading to further stagnation and decline in our built heritage. This can have long-term implications for the preservation of historic buildings and the revitalization of our urban areas.
Despite these challenges, there are a few options available to owners of empty listed buildings to alleviate the burden of business rates. One option is to apply for an exemption or relief on business rates for empty properties. Owners may be eligible for a temporary exemption or a discount on their rates, depending on the circumstances of the property. Another option is to explore creative uses for the building that may qualify for relief, such as charitable or community use.
However, these options are limited and may not provide a long-term solution to the issue of business rates on empty listed buildings. The government has recognized the challenges facing owners of vacant properties and has made some changes to the business rates system to address these concerns. For example, in 2017, the government introduced a one-third discount on business rates for properties that have been empty for more than three months, providing some relief to owners of vacant buildings.
In conclusion, business rates on empty listed buildings present a significant challenge to owners and developers, putting pressure on the preservation and reuse of our historic buildings. The financial burden of business rates can make it difficult for owners to maintain and develop their properties, leading to stagnation and decline in our built heritage. While there are some options available to alleviate the burden of business rates, more needs to be done to find sustainable solutions for empty listed buildings in order to protect our architectural history for future generations.