Partner Article

Decisions we can build on

THERE have been a number of developments in the past week that will have an impact on the property and construction market.

You may recall that the RICS has been pressing the Government on Empty Property Rates (EPR).

When in April 2008 the Government of the day scrapped EPR relief on commercial properties, it heaped a new financial burden on landlords and occupiers. Fast forward to today and we are at the point where the supply of quality office and industrial space across the region is running out.

There is no doubt that EPR is one of the biggest deterrents to schemes being built. Neither developer nor funder will take the risk of building if there is the likelihood of paying EPR because a tenant cannot be found.

Seeing some sense, the Government made a commitment to apply relief from EPR for new properties. Last week it published a consultation paper, a precursor to an exemption for all newly-built commercial property completed between October 1, 2013, and September 20, 2016 for the first 18 months. Hurrah, at last!

Moving to infrastructure, the Government has also announced a widening of the fast-track system for significant infrastructure projects (previously transport, energy and water and waste schemes) to include developments for car factories, office buildings, theme parks and hotels, warehousing, distribution centres and sports stadiums.

This is extended to help bring about investment and jobs, making sure businesses can have confidence in quicker and better planning decisions. Under the proposed changes, developers can ask for their application to be determined at a national level, which would ensure decisions are made within 12 months.

I would rather planning applications were determined locally without interference from Whitehall as I find planning officers in the region are much more tuned to the market.

My third point refers to last week’s column in which I called for the setting up of a Shadow Public/Private Marketing Group for the region.

Earlier this week I read that the public/private sector partnership backed by Sir John Hall, Durham County Council with the South Durham Enterprise Agency and set up to increase Japanese investment in the County Durham area is celebrating a successful first year.

The partnership said stronger relationships have been forged with businesses such as Hitachi, Panasonic and Nissan. It has also aided firms in the North East to visit Japan and the British Embassy in Tokyo. Need more be said?

This was posted in Bdaily's Members' News section by Kevan Carrick .