Tax bill for landlords 'to rise by £150m'

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Landlords are set to pay out an extra £150 million in tax with the introduction of a levy on empty buildings, it has been claimed.

This is the calculation of NB Real Estate which based its figure on the fact that since the law was proposed last year, the overall vacancy rates for residential, retail and industrial property have risen by 15 per cent to 12.4 per cent.

The £150 million is on top of the £950 that the government had expected to raise through the charge.

Andrew Warde, director of rating at NB Real Estate, said: “This empty rates tax was conceived when the property market was performing strongly, but the downturn is heaping misery upon misery.

"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."

The emptybuildings tax has been introduced to encourage landlords to put properties to practical use rather than leave them unused.

It is hoped that this will help address housing shortages.

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