Rate rises will hit warehouses

Retail warehouse occupiers need to brace themselves for big rates rises, according to property agent Chesterton.

Analysing the provisional figures released by the Valuation Office Agency, Chesterton identifies retail warehouses as the property sector likely to be hardest hit by next year's rating revaluation, with rateable values likely to see an average increase of 35 per cent.

In the Southeast, out-of-town rateable values could soar by as much as 40 per cent, the agent forecasts.

Peter Chapman, director of rating at Chesterton's City office, warned: 'For the average 20,000 sq ft (1,860 sq m) unit in the Southeast, this could mean an increase in rates next year of more than£20,000.'

However, the increases will be phased in over a period of up to four years, albeit faster than in past revaluations. The maximum increase in the first year will be 12.5 per cent, followed by 17.5 per cent in year two, 20 per cent in year three and 25 per cent in year four.