A significant increase in business rates and upcoming changes to tenants' rights are casting a shadow over Somerset’s local estate agency sector. Tor Estates, with offices in Street and Glastonbury, report a staggering 50% rise in their business rates—from under £10,000 to £15,000 for the new financial year. This steep hike has forced the agency to consider layoffs, sparking concerns about the future of the High Street.
Mel Brown, director of Tor Estates, told Somerset Live, “With all these extra government-imposed costs, it feels like the death of the High Street.” She highlighted the impact on local employment and retail, noting that in Street alone, six shops have remained vacant for over two years.
Business rates, which contribute to funding council services including police and fire departments, are calculated based on a property’s estimated annual rent, known as its ‘rateable value.’ While some businesses qualify for relief—such as charities, amateur sports clubs, and small businesses occupying a single property—many are feeling the pinch as property values and associated charges rise.
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In addition to financial pressures, Tor Estates is grappling with the effects of the forthcoming Renters' Rights Act, set to take effect in May. The legislation aims to protect tenants by outlawing no-fault evictions, extending notice periods, and expanding tenant rights to keep pets. However, Mel Brown argues it has had unintended consequences for landlords and estate agents alike.
“We’ve lost 25% of our rental stock as landlords are choosing to sell up,” she explained. “Though the Act is designed to shield good tenants from rogue landlords, it unfortunately offers no protection to good landlords from problematic tenants.”
A spokesperson from Somerset Council clarified that while the council collects business rates, the valuations are set nationally by the Valuation Office Agency (VOA), based on open market rental values at specific valuation dates. The council emphasized available reliefs and support mechanisms for local businesses, including Small Business Rate Relief, Retail, Hospitality and Leisure relief, transitional relief, and rural rate relief, among others. Businesses struggling with rates or disputing valuations are encouraged to contact the council for guidance and potential assistance.
As Somerset’s small businesses navigate these financial and regulatory challenges, the future of the High Street and rental market remains uncertain, with lasting implications for the community’s economic vitality.