The budget has been deemed a success for the commercial property market and a ‘perfect launchpad’ to secure a bright future by Devon based commercial property specialists Charles Darrow.
The firm claimed that the market has been dealt a significant boost thanks to the budget, with commercial property investors given a lift.
Introducing a zero rate band for commercial stamp duty is one of the main points that Charles Darrow has said will bring optimism for the future.
Commercial stamp duty rates start at zero up to £150,000, with a duty of 2% on the next £100,000, rising to 5% over £250,000.
These reforms have been forecast by the Treasury, ensuring that more than 90% of commercial properties will see tax bills cut or stay the same.
Chancellor George Osborne also announced a business rate tax relief, which will rise from £6,000 to a maximum of £15,000, resulting in 600,000 smaller firms not paying business rates altogether.
Under his new plans, 250,000 firms will end up paying less in business rates and half of all properties will pay no or less business rates.
This means that commercial property investors will see less of a risk if properties with rateable values under £15,000 become vacant, as they would be exempt from paying business rates on the empty property.
Director of Charles Darrow, Paul Heather, said the business rates reform would have a massive impact on the sector’s transformation, adding that it would be a positive impact on the South West.
“This news should encourage residential property investors to look to commercial property investment.”
He goes on to say that Westcountry will feel the benefits, adding: “We are already seeing residential property investors shift to commercial property investment, which can offer more than double the return on investment when compared to residential properties.
“We are also experiencing an influx of property investment coming to the Westcountry in favour of lower property values in the region, which offer much better value for money than property in London and South East and this will only accelerate that process.”