Scottish shopping centres could be ‘winners’ in next year’s rates revaluations, says EYCO

4th November 2022 | Lucy Millar

Craig Wilson, partner at Edinburgh-based EYCO Chartered Surveyors, confirmed he has been working with assessors on a number of Scottish shopping centres, trying to find their 2023 rateable values, which will determine rates bills next year.

“So far, the results have been very encouraging. Welcome news at a time when other occupational costs are increasing,” he said. “To date, I have been confident enough to report an estimated £18.5m cumulative rateable value reduction across 6 centres, with a number of other centres still under discussion. These results typically exclude the still to be resolved issue of ex-Debenhams and/or BHS stores.”

Wilson explained that the £18.5m represents a 47% cumulative reduction, and added: “I have had discussions on 12 shopping centres in Scotland. The adjustments we can expect to see will not be uniform, but I would anticipate that those enclosed centres of highest value will see the largest percentage decline in rateable value. Adjustments of -40% to -50% would not be unusual, perhaps more in some locations.

“The second tier, lower value enclosed centres already experienced something of a correction at the last rates revaluation in 2017 and, as they are currently at a lower base and typically have smaller retail units, will perhaps decline to a lesser degree, with -20% to -35% being a reasonable expectation.”

However, he warned that this may not be the case outside of enclosed shopping centres, with certain city centre prime retail less likely to offer much in the way of rates savings: “I expect high street retail to present a more mixed picture, although increases should stand out as unusual.”

Source: Craig Wilson, EYCO


Looking for more retail news? you might find these interesting