Commercial property occupiers warned to expect business rates hike
AHEAD of the business rates revaluation process commercial property occupiers in the north are being warned to expect a hike in 2020.
Businesses will receive electronic questionnaires from LPS this weekend, which will request details on current lease agreements including rent, incentives and capital contributions. This information must be returned within a short time frame and will be relied upon in the valuation process.
The next business rates revaluation for non-domestic properties in Northern Ireland will come into effect on April 1 2020, five years since the last revaluation, and seven since the antecedent valuation date.
Director of professional services at Lambert Smith Hampton, Mark Elliott said he expects to see an increase in rates across the board.
“A lot has changed in the Northern Ireland property market since the last valuation process. We have seen improvements across all property types and as a result of that we are likely to see an increase in most rates for the period from 2020. "
“LPS relies solely on the details it receives during this questionnaire process to apply property rates and we are aware of several appeals which are still ongoing from the last revaluation. The organisation will be keen to ensure that it is working with clear and reliable facts. Due to a limited amount of available information following the last questionnaire a number of shopping centre schemes faced rates bills which were significantly higher than they should have been and following an appeal process they were reduced by up to 30 per cent.”
“Providing as much correct information as possible will support the integrity and reliability of the process to ensure that more businesses receive fair valuations which are reflective of the market rent of their properties. We are recommending that our clients take professional advice before submitting information, and we are providing detailed business rates advice in respect of all commercial property sectors," he added.