Non domestic rates, which apply to commercial properties, and which are commonly referred to as business rates, are set to soar this year due to high levels of inflation. Some people think that in time, rates will exceed rents and these combines costs will make occupying some commercial properties unaffordable.
Landlords may soon see the effects of increased business rates when their tenants can no longer afford to stay in occupation. This will result in increased vacancies which in turn will cause commercial property values to fall. Many landlords are pre-empting this and seeking to sell now whilst their tenants are still paying rent as opposed to waiting for their tenants to vacate which will make selling their properties very difficult.