RSUA responds to DoF survey on vacant rating

In June 2025, the Department of Finance (DoF) announced the beginning of a Strategic Review of a Small Business Rate Relief Scheme and Non-Domestic Vacant Rating (NDVR) exclusions and liability.

As part of its engagement, DoF issued a short survey in relation to some key questions around both measures, which closed for responses on Monday 15 September 2025.

RSUA responded to the survey, incorporating comments from our Conservation Committee. We had no comments on Small Business Rate Relief.

Overarching stance on rating policy

RSUA began its response by stating that, firstly, the rating system should incentivise the return of vacant buildings to use by rewarding those who occupy them and penalising those who leave them empty.

Secondly, we emphasised that rates should encourage the repair and maintenance of derelict or dilapidated properties, offering relief to new owners committed to this work and imposing higher charges on those who allow such buildings to deteriorate.

Rating vacant buildings

In its response, RSUA asked DoF to consider:

• Raising NDVR liability to at least 100% to incentivise the use of vacant properties and discourage speculative holding or long-term neglect.
• Continuing to levy rates on listed buildings to encourage owners to bring them back into use as quickly as possible.
• Applying penalties to listed buildings that are not kept in good repair.

We also outlined scenarios where a period of rates relief might be appropriate, including:

• Charging full rates to new owners of derelict listed buildings until sufficient repairs are completed, then granting a period of relief as a reward.
• Providing a period of relief for owners whose property is listed during their ownership, recognising the added restrictions and potential loss of value that listing can entail.
• Offering a means-tested period of relief for those inheriting a listed building, giving owners time to assess whether they can afford the rates or need to arrange a sale.

Regenerating our settlements

Asked to suggest possible changes to NDVR policy in relation to regeneration, we requested DoF to consider:

• Avoiding rate structures that make the demolition of structurally sound non-listed buildings financially attractive and instead apply rates to empty sites based on the former building’s character and the circumstances of its demolition.
• Introducing a levy on surface car parks to prevent speculative vacancy, generate public revenue and help reduce car dependency in line with net-zero goals.
• Establishing City and Council Architect roles to help coordinate rating policy with planning policy, regeneration funding, listed building regulations, climate change commitments and the work of local councils.

RSUA’s full response to the survey can be accessed here.

If you have any questions or comments about our response, please contact Curtis Large, RSUA Policy and Public Affairs Officer, at curtis@rsua.org.uk