Unstable Property Market Delays Revaluation

Instability in the local commercial property market has prompted a delay in a planned revaluation of business properties.

To allow time for the market to recover, NI Finance Minister Sammy Wilson has announced his decision not to proceed with the revaluation of non-domestic properties, planned for April 2011 that had originally been due to take effect in April 2010.

Speaking about his decision, the Minister said: "I announced last year that I was postponing the revaluation of non domestic properties until 2011.

"I had taken this decision in light of the instability in the local commercial property market, to allow time for the market to recover.

"I also wanted Land and Property Services to monitor the market and, if possible, review the valuations to reflect the changed conditions.

"The analysis my Department has undertaken over recent months supports the Commissioner of Valuation’s view that there is insufficient market evidence at this time to establish a reliable new Valuation List of non domestic properties.

"The analysis also suggests that, if the revaluation proceeded, it would fall well short of international valuation standards.

"I cannot allow this to happen because the stability of the tax base is all important, not simply for the Assembly but for local government finances as well."

He continued: "Unfortunately, while there are some signs of recovery in the wider economy, I do not believe that the commercial property market has stabilised sufficiently to allow a revaluation to proceed with any confidence.

"I know there will be some who will be disappointed with this decision. However, I think a cancellation is in the best interests of the business community, as well as the local councils who rely on certainty in these matters to plan for the future."

In order to avoid any further uncertainty, the Minister has also announced that the next revaluation will now take place in April 2015.

"This will allow Northern Ireland to align with the next revaluation of non domestic properties in the rest of the UK, which is due to occur then.

(NS/BMcC)