One solution to the housing downturn

[DimPrawn]

http://news.bbc.co.uk/1/hi/business/7582473.stm

Buildings are being knocked down as businesses seek to avoid paying tax on empty properties, a government regeneration chief has warned.

In April, the government scrapped rate relief on empty industrial property such as warehouses.

The tax was aimed at landlords who kept premises empty in hope of better rents.

But John Nicholls, chief executive of the Urban Regeneration Companies, said the tax was leading to "pre-emptive demolitions" to avoid the tax bill.

"As well as the problem of pre-emptive demolitions, it's having an effect on supply of new property," Mr Nicholls said.



If you can't sell it, raze it to the ground!

[Cyberman]

Brilliant. I see a worse housing shortage looming !!

[TykeMerc]

Some years ago I was working in central Leeds and there were several empty office blocks which had all of their floors and non structural walls removed leaving basically just the shells. It transpired that this was done to reduce the floor square footage to drastically cut the Business Rates.
When they got tenants they just put the insides back and fitted them out, it seemed a bit nuts to me but I assume it was a valid tactic at the time as the buildings had different developer contact names on them.

I suppose this is the logical extension of that policy with new rules applied.