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Landlords ready to play their part as government unveils riot damage recovery plans

The British Property Federation has welcomed a package of measures unveiled by Government to help businesses recover from four days of rioting and looting across the UK.

The measures announced today included £30m funding to repair high streets, an extra 28 days for businesses to claim for damages they have suffered – even if uninsured, an exemption from business rate liability for the worst hit properties and a fast track planning regime to bring these buildings back into use.

Liz Peace, chief executive of the British Property Federation, said: “These measures are extremely welcome and will give businesses hope that in affected areas life can quickly return to normal.

“Landlords will play their part in helping their communities to recover, and the extra time they now have to make insurance claims will give them valuable breathing space as they work with tenants to take stock of the damage and disruption that has been caused.

“If, as it appears, the removal of rates liability for substantially damaged buildings is also to be given to empty properties that have been rendered uninhabitable then this is also extremely positive.”

The BPF expressed particular concern at the impact the riots had on small and medium sized firms, which often form the economic backbone of local communities, but warned against scaremongering over the impact the violence may have on the wider property industry or its ability to generate investment in UK towns and cities.

Liz Peace said: “Any damage to property is of course appalling, but what has been truly heartbreaking is to see the carnage that has been inflicted upon small, family-run shops and businesses. These enterprises are often the lifeblood of their communities and have a vital role to play in maintaining the economic health of high streets across the UK.

“However, and as disturbing as recent events have been, it is important not to overstate their impact on the property industry or the consequences for investors. Contrary to the somewhat apocalyptic voices from some quarters, the sort of assets that attract large-scale and overseas investment in commercial property are definitely still standing and are largely unaffected.

“Moreover, while it is still early days, we would very much hope that the property industry’s ability and appetite for delivering much-needed and sustainable development in UK towns and cities will remain strong.”

ENDs

Patrick Clift, Media and Public Affairs Manager, on 07834 439 505 or at pclift@bpf.org.uk

Paul Sweeney, Media Officer, on 07841 732 194 or at psweeney@bpf.org.uk

Notes to editors

The package of support being announced today includes:

• A £10m recovery fund to help councils with the immediate costs of making their areas safe, clear and clean again. This fund can be used, for example, to clear debris left strewn in streets and make immediate repairs to pavements and roads. This Recovery scheme can also be used to support councils who use their powers to offer council tax discounts or council tax relief to those whose homes have been damaged but are still habitable.

• A £20m High Street Support Scheme - funded jointly by the Departments for Communities and Local Government, and Business Innovation and Skills, which will be made available immediately, for the streets and areas where businesses were affected by the rioting. The money is intended to finance those measures that will get business trading again and meet short term costs. Councils will distribute the money and could use it to reduce business rates, finance building repairs and encourage customers back to the affected areas.

• In addition, seriously damaged homes and business properties will be taken off the respective valuation lists, and Mr Pickles has strongly encouraged the Valuation Office Agency and local authorities to do so as promptly as possible. This removes any liability for council tax or business rates.

• Councils have the power to offer rate relief for local firms, but must pay a quarter of the cost; central government automatically pays for three quarters of the cost. This Scheme will help reimburse councils for their costs, to facilitate immediate and real financial help to be given to small and medium firms to rebuild their local businesses. Business rates are typically the third biggest outgoing for firms after rent and staff.

• Affected businesses and homeowners can seek compensation under the Riots Damages Act 1886, even if uninsured. The time for applying for compensation will increase to 42 days from the existing 14.

• Pledge to make planning permission for fixing properties, and easier and faster process than normal.

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