When a commercial building is empty, the owner, not the tenant, usually becomes liable for business rates. This is one of the biggest costs of a void period.
Empty property relief in England
- Most commercial property: no business rates for the first 3 months after it becomes empty.
- Industrial and warehouse property: no business rates for the first 6 months.
After that, full business rates are normally payable. Some properties are exempt, for example those with a low rateable value or where occupation is prohibited by law. Check with the local council.
Scotland, Wales and Northern Ireland
Each nation has its own business rates system and empty property rules.
Why investors care
A warehouse that falls empty stops earning rent and starts costing rates, insurance and security. Lease length, break clauses and tenant strength matter because they reduce the chance of this happening. Find your council's rules on GOV.UK.
This guide is general information, not financial, tax or legal advice. If you are unsure whether an investment is right for you, speak to a regulated financial adviser.