The commercial property sector in Northern Ireland and the rest of the UK could face tougher times in future because the empty property rates (EPR) has led to a rise in demolition cases.

According to the Royal Institution of Chartered Surveyors (Rics) and Lambert Smith Hampton's Empty Property Rates Survey, an increasing number of owners are demolishing their properties to avoid paying the rates.

The survey shows that a staggering 93 per cent of respondents agree that the EPR is worsening the financial difficulties of many property companies as well as occupiers.

Properties in perfect condition are now being demolished by owners, with 85 per cent of respondents saying this was taking place to get around paying the rates.

The industrial sector is the worst affected by the phenomenon and this could result in a shortage of such properties in future when the economy turns around, Rics warned.

According to Drew Nesbitt, a member of the commercial property department at Wilson Nesbitt Solicitors, commercial property owners "are feeling the strain of the current economic situation on a number of fronts including the impact of the empty property rates".

He said: "There are however various options available to them to curb the losses they could stand to suffer, and careful planning and adherence to legal and financial advice could prevent commercial property owners from having to resort to the drastic action of demolishing perfectly good buildings."
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