EUROPE

More pressure on UK warehousing to come

17 years ago

As a consequence of changes to the Empty Property Rate (EPR) taxation in the UK, it has emerged that landlords are demolishing perfectly good warehouse property as a way of avoiding paying the substantial amounts of tax that unoccupied facilities now incur.

And Roger Williams, chief executive of the United Kingdom Warehousing Association (UKWA), adds that the cost of EPR is proving a major deterrent to speculative warehouse construction.

“By encouraging the early demolition of otherwise useful warehouse buildings and discouraging new speculative development, the imposition of EPR means that when this recession ends there will inevitably be a shortage of warehouse accommodation and rents will rise significantly,” he said.

“The imposition of EPR on warehousing and other properties could not have come at a more difficult time.”