A Somerset-based estate agency has warned that a 50% increase in business rates, combined with the impact of the Renters’ Rights Act, may force the firm to make redundancies.
TOR Estates, which operates two branches in the county, has seen its annual business rates bill rise from less than £10,000 to £15,000 for its Street and Glastonbury offices.
High street impact
Director Mel Brown told Somerset Live that the increased costs pose a significant threat to high street businesses. “With all of these extra costs the government is putting in, it’s going to be the death of the High Street,” she said, noting that six shops in Street have remained vacant for over two years.
The firm has also reported a 25% reduction in rental stock as landlords exit the market. Brown attributed this to the recent legislative changes, stating: “It’s meant to protect good tenants from rogue landlords, but it’s done nothing to protect good landlords from rogue tenants.”
Industry-wide concerns
Nathan Emerson, CEO at Propertymark, confirmed that the business rates changes implemented in April have created widespread concern among small business owners. “The amended framework has especially impacted smaller high street enterprises, who operate from multiple locations, in terms of the amount of Small Business Rate Relief entitlement they are eligible to claim,” he said.
Emerson added that many small and medium-sized businesses on the high street are now within a 36-month window for rebates on their main location, and will potentially lose that relief once the timeframe expires. Future revaluations could further increase rates for businesses already facing commercial pressure.
The developments come as the buy-to-let sector faces broader challenges, with landlords reassessing their portfolios amid regulatory changes. The combination of increased operating costs and reduced rental inventory presents a challenging environment for estate agents across the UK.
The business rates increase affects agencies operating from multiple high street locations, with the changes to Small Business Rate Relief reducing the support available to firms with more than one branch.