Chancellor, George Osborne's Autumn Statement last week revealed
some promising news for the UK commercial property market, with
increasing hope for growth according to global real estate services
firm, Jones Lang LaSalle.

They claim the decision to exempt all newly built commercial
property in the UK completed between October 1st 2013
and September 30th 2016 from empty property rates for
the first 18 months will encourage private investment.

Tim Beattie, lead director, rating at Jones Lang LaSalle, said:
"Subject to the detail of the consultation process and the state
aid limits, [we] could clearly see some speculative schemes being
started sooner rather than later but there will also be a tension
between these provisions and the localism agenda enshrined in the
Local Government Finance Act 2012.

"Billing Authorities are expected to take a keen interest in new
development in their area after April 1st 2013 because
they will benefit from the increased tax take."

The market is expected to be aided further by the decision to
extend the temporary doubling of the Small Business Rate Relief
scheme which should stimulate improved market activity well beyond
London. This will also run for a further
year from April 1st 2013.

Retailers and local businesses are already leading calls to for
the Government to reverse their decision to postpone the 2015
Revaluation to 2017. The benefits that a Revaluation could bring to
local firms will be delayed by two years and Beattie believes this
has been deemed an "ill thought out decision".

"The next Revaluation would re-distribute the rates burden in
line with current economic activity thus easing the pressure on
high streets in particular," he added.

In summary, expectations for UK commercial property prices were
well down on the OBR's 2011 forecast, with a prediction of a 2.1
per cent fall in 2012/13 as opposed to a 1.1 per cent growth
previously forecast.

By 2016/17 the OBR now only expects growth of 3.9 per cent
rather than the 5.4 per cent it predicted a year ago.

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