The owner of empty premises in Perth city centre says business rates have made it hard to find a new tenant.
Tim Duffy admits he is finding it tricky to attract an entrepreneur to manage 133 South Street.
To bolster interest, he submitted an application – approved by the council – for a takeaway to operate at the site – should one be interested in taking it over.
The property was previously occupied by Betfred and sublet to PKVAS charity shop, but its lease ended last autumn and has been for rent since.
Business rates ‘significant factor’ in empty Perth shop
Tim, from Belfast, told The Courier: “We don’t have any particular takeaway in mind.
“One of the problems we have is Betfred was paying £37,000 a year and the agent advised reducing it to £17,000.
“But a significant factor in rental levels is the level of rate support for businesses. From £15,000 you get a lot less relief.
“A nearby shop said they’d be interested but they could pay the rent but not the rates.
“There are other shops now dropping to £12,000. This becomes the defacto cap from the Scottish Government who are basically setting the rent.
“We applied for a change of use to make it more appealing for potential new tenants.”
Tim bought the property back in 2007 when it was up for sale on a nationwide auction.
At the time, he said he identified Perth as a “strong retail city” after scouting Scottish areas for commercial opportunities.
Currently, Tim continues to pay rates on the property while it remains empty.
The 62-year-old added: “It’s 50% relief for three months and then 10% after – I’m basically paying full rates.
“Having to pay rates on an empty property is a kick in the stomach.
“I do have someone looking to open a fashion retail store just now, but until the lease is signed I’m still looking for someone.”
Scotland has ‘UK’s most generous’ scheme, says Holyrood
It comes after a Perth hairdresser previously told The Courier that business rates forced the closure of his hairdresser in the city centre.
Any development would be a boost to South Street – which has a vacancy rate of 20% according to The Courier’s high street tracker.
The Scottish Government claims it has the “most generous scheme” in the UK and delivers £685 million in non-domestic rates relief.
A spokesperson added: “The basic property rate on properties with a rateable value of up to £51,000 has therefore been frozen, delivering the lowest such rate in the UK.
“The small business bonus scheme is also available to businesses where the combined rateable value of their premises is £35,000 or less and the values of individual premises are £20,000 or less.”
Perth and Kinross Council says that until April 2023 a Scotland-wide statutory scheme was in place, and was kept by the council until April this year.
A spokesperson added: “As of April 1, 2024, any empty non-domestic property will receive a full exemption from rates for up to six months, then the standard rates charge will apply.
“Any property which was already empty for six months or more as of 1 April 2024 would as a result no longer be eligible to pay a reduced charge.”
Details on rates relief and support can be found on the council’s website.
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