Further speculative development in Wales is under serious threat from the new empty properties tax as the Welsh Property Industry pleads with the Welsh Assembly to opt out of joining the new legislation alongside England. Under the new legislation the Assembly could charge Commercial Property operators an empty property rate of up to 50% if their Office Space is left vacant creating a huge financial burden which will hit providers during the economy’s current hostile period.
The new taxes stand to have a damning impact on further development in Wales where property magazine Property Week have reported that Welsh developers Bailey Group are paying nearly £114,000 of empty rates just on one speculative office property scheme in Bridgend!
In defence of the decision the Welsh Assembly have said that if they do not find an alternative way of meeting the costs other budgets will have to be cut, potentially affecting such areas as Health and Education.
Should the legislation be implemented South Wales providers can at least pin hopes on the 2010 Ryder Cup to bring in new clients to the area. However, as sighted in our article “South Wales Offices Thriving Despite Credit Crunch”, the impending opening of the new Regus Plc property at the Wales One Business Park development in Magor will bring in further square footage to be filled in the area as competition continues to increase.
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