Empty buildings face rate rise

5:05pm Saturday 29th March 2008

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THE owners of hundreds of empty business premises in York will come under pressure to put them back into use next week, when new rates rules come into force.

City of York Council will begin levying a 100 per cent business rate on many empty commercial buildings from April 1, instead of the current figure of 50 per cent.

The change is intended to encourage owners to put long empty properties back into use, said Labour's city strategy spokeswoman, Tracey Simpson-Laing.

The council said that at the beginning of March, there were 502 empty business premises within the local authority's area, of which about 350 were set to be subject to the new higher rate. The others may be excluded from the new rules because they are listed or are too small - such as small workshops - or because the owners have gone into liquidation or bankruptcy.

One notorious empty property in York is the White Swan Hotel, in Piccadilly, which has remained closed and boarded up for more than 25 years.

The mock Tudor building has not been used commercially since the 50-room hotel, nightclub and restaurant closed in 1982. The building was declared unfit for habitation in 1992, and in May 2003, more than 30 squatters took control of the building and began guided tours and art exhibitions, but were evicted after two months.

A council spokeswoman was unable to say whether the White Swan would definitely be subject to 100 per cent rates, but Coun Simpson-Laing said: "Residents often ask me what is being done about the White Swan Hotel. Perhaps the cost of paying the full business rate, rather than a reduced one, will make them consider their position."

She said the changes had come about as a result of The Rating (Empty Properties) Act, which introduced a 100 per cent liability on commercial properties after an initial void period.

"Currently empty retail and office premises receive a three- month period where no rates are charged and then are only charged 50 per cent of the cost," she said.

"From April 1, there will be a 50 per cent charge of rates for three months followed by 100 per cent.

"This change has come about as the Government recognised that many cities like York suffered problems of empty business properties, often due to developers buying up property and waiting for development opportunities to come along.

"There is also a cost to police and fire services of empty properties, as they become the target of crimes which we all end up paying for as individual citizens.

"I am sure there are lots of good owners of business properties, but we all know of ones in York that are not and this legislation is about making them responsible, by hitting them where it hurts when they are not."

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