Prime commercial property will always be in demand, the British property Foundation has said.
Its head of media, Andrew Teacher acknowledged a recent down turn in demand and expressed his concern that government legislation is making the situation worse.
“Prime property will always be in demand but what the government is doing with empty rates is harming the supply of secondary property,” he said.
Empty property tax rules have changed recently and provoked outrage in the industry – sentiment backed by several members of parliament.
“The government’s belief that landlords keep buildings empty without good reason is just plain wrong and the blanket application of additional rates tax just doubles the pain,” said Andrew Warde of NB Real Estate.
Research by Investec Private Bank’s Structured Property Finance division has revealed most sector professionals predicted valuations would stabilise by the end of this year.