Analysis conducted by the Scottish Property Federation on the most commercial property sales figures July to September) 2017 shows that the total value of commercial property transactions in Scotland fell for the third quarter in a row.
The figures, released by the Registers of Scotland, show that there was just £693m worth of sales in Scotland during the quarter, down 12% on the previous. The number of sales also dipped by 8% to 1,089.
There was also a big drop in the number of £5m-plus commercial properties sold in Scotland, with transactions in this tier at their lowest since the second quarter of 2014; 22 were sold, worth a total of £332m, compared with 32 sales with a combined total of £385m in the previous quarter. “We have not seen three consecutive quarters of negative growth in commercial real estate sales since 2012 and I think that it is a reminder of just how fragile our market is currently,” said David Melhuish, director of the SPF.
Groups representing manufacturing, commercial property, retail and tourism in Scotland have called for business rates to be increased by no more than the Consumer Price Inflation index. The switch to CPI from the Retail Price Index (RPI) was endorsed by the recent Barclay Rates Review, and would almost certainly lead to a reduction.
Following last week’s Budget from Chancellor Philip Hammond, CPI is being introduced for ratepayers in England from next spring. The industry groups told the Scottish Government this week that keeping rises in line with RPI would put businesses north of the Border at a competitive disadvantage.
Business rates director at BNP Paribas Real Estate, Michael Harkin, said: ““Many Scottish ratepayers are already paying higher rates than their counterparts in England due to the higher level of Large Property Supplement (LPS) which is applied to properties with a RV in excess of £51,000 – 2.6p in Scotland v 1.3p in England.
“Hopefully, in the upcoming Scottish budget, the finance secretary Derek Mackay will take the opportunity to reduce the level of the LPS, as recommended in the recent Barclay Review of Business Rates, as well as proposing a change from RPI to CPI in line with England. Anything less will leave Scottish businesses at a competitive disadvantage.”
Related posts
Interviews
Comment
Please mind the gap… or healthcare may fall
Imagine sharing a lengthy train journey with others. From beginning to end, imagine how often you might hear ‘mind the gap’ messages about embarking and disembarking safely. Picture how navigating…
Women Lead: My journey from Dragons’ Den to Silicon Valley
Following her appearance on Dragons’ Den, Sheila Hogan, serial entrepreneur, founder and chief executive of digital legacy vault, Biscuit Tin, shares her experience of her time in the Den and…
Look anywhere – the future is ‘aged tech’. But Scotland needs to be more adventurous
Scottish Care, as the representative body of independent social care providers of care home, care at home and housing support services, has been working over several years with colleagues in…
Women Lead: Engineer turned entrepreneur
We are always fascinated by other people’s stories. It’s how we connect, grow and learn from each other. Until very recently I always felt like I didn’t have a story to tell. Who…
‘Women – together we will change the dynamic in tech’
I was inspired to start a career in technology when personal computers were in their infancy and the internet decades away. My childhood dream of becoming a scientist was shaped by…
It’s time to change the future of tech apprenticeships – and we need your help
In his latest exclusive column for Futurescot, Ross Tuffee, chair of the Skills Development Scotland (SDS) Digital Economy Skills Group, calls on tech employers to get involved in shaping the…
What AI difference a year makes
Amazingly, it’s been one year since the publication of Scotland’s AI Strategy. And what a year it has been. Demanding but rewarding, with good progress made and great foundations laid…
International Women’s Day: It’s time to harness power of women in technology
As we celebrate International Women’s Day, I hope to be part of a future where barriers that prevent women from competing on a level playing field in the work environment…