Plans to scrap dilapidated building rate relief

A consultation on the proposed changes will run until 17 October

Plans have been outlined to remove rate exemptions for dangerous or dilapidated buildings in a bid to discourage the long-term vacancy of properties.

The change proposed by Treasury would affect 398 properties across the island, bringing in an expected income of about £265,993 for the 2025-26 financial year.

The government said the intention behind changes to rate exemptions for dilapidated buildings was to "disincentivise" property owners leaving the buildings empty or derelict and encourage their renovation.

However, Chris Kelly from developers Kelproperties, which owns the former Newson's site in Douglas, said the proposed changes were "grossly unfair" and "discourages investment".

The firm's previous proposals to redevelop the site, which is on the registered building list, were rejected by planners in 2022, with the latest application still under consideration.

"Now we face having to pay thousands of pounds on a property that nobody wants," he said.

The Treasury's proposed rate reform is part of a raft of measures included in a six-week consultation outlining proposed amendments to the Rating and Valuation Act 1953 to tackle a number of anomalies in the existing laws.

Rate reforms

Chairman of Castletown Commissioners Tony Brown said authorities "need to do everything we can to encourage owners to improve properties" and the changes would motivate them to renovate.

Last year Douglas Council made changes to rate relief for derelict sites and has since issued warnings to property owners in the capital to encourage development of those buildings.

Leader of Douglas Council Devon Watson said the proposals changed the incentives around having dilapidated buildings and land banking.

"If these buildings can be brought back into circulation it reduces housing pressure," he added.

He said he believed the changes that were made in Douglas had sparked the proposals by Treasury.

Introducing the consultation, Treasury Minister Alex Allinson said the changes could be implemented "quickly".

Plans also include introducing a discount or cap on rates for quarries, which are currently determined by the previous year's turnover, with the change aiming to decrease uncertainty for the businesses.

The public will also be asked whether all charities should be exempt from paying rates on properties they hold, or whether charges should be placed on profit-making parts of their property portfolio.

Views on the proposals can be submitted online or by post until 17 October.