The British Property Federation (BPF) has called on the government to extend the period of business rates relief to 12 months and reintroduce a 50% rate cut for long-term empty stores in a bid to revitalise the high street.
Owners of vacant shops currently have a three-month exemption from business rates to upgrade stores as necessary and re-let them to a new tenant.
Data from the Local Data Company shows that less than one in ten empty shops (9%) are re-occupied within six months and almost a third (31%) lie empty for more than two years.
There is also greater regional disparity across the UK, with just 4% of empty stores in Yorkshire re-let in six months, along with 5% in the East Midlands and North East, compared to 13% in the South West and Greater London.
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The data shows that re-letting empty units is challenging across all retail location types, as 9.9% of high street stores are reoccupied in six months, compared to 7.5% at shopping centres and 10.3% at retail parks.
BPF chief executive Melanie Leech said the current empty rates relief is “completely out of step with today’s market conditions”.
“We recognise that business rates generate vital income for local authorities, but it is simply not sustainable for property owners to shoulder this tax burden when there is no tenant or income on a unit.
“This is effectively kicking someone while they are down, and only adds to the challenge of upgrading and repurposing older stores and attracting new businesses.
“If the government is serious about supporting high streets and town centres it must extend the period of business rates relief for empty shops and other commercial units in line with the evidence and reintroduce a 50% reduction thereafter.”
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