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Has the PBR affected the commercial mortgage market?

Has the PBR affected the commercial mortgage market?
Date: 12/14/2009

Chancellor Alistair Darling's pre-Budget report (PBR) earlier this week may well have an affect on those with commercial mortgages.

During his Wednesday speech, Mr Darling announced empty commercial properties with a rateable value below £18,000 will not have to pay business rates until 2010-11.

Some 70 per cent of all empty properties in the UK will continue to remain exempt from this tax as a result.

Reflecting on the move, the business development director at retail and leisure data provider the Local Data Company - Matthew Hopkinson - said that the threshold may enable smaller businesses "to go in and start up".

He also suggested that entrepreneurial people may want to try something else and the chancellor's decision will allow landlords to do so.

On the flip side, Mr Darling's announcement will apparently irritate the larger institutional landlords.

Mr Hopkinson said: "The million dollar question is that it has been extended for a year, but actually why not just keep it in place?"

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