Charities have reported significant difficulties in finding operational space, data from a new survey shows.
The survey by Temporary Use Aid, a company that helps charities find vacant properties, found 73 per cent of respondents said it was moderately or extremely difficult to secure spaces.
The research gathered insights from more than 200 charities, volunteer groups and social enterprises, addressing issues including finance and space acquisition.
More than three-quarters of the charities polled said they were unaware of the abuse of empty rates relief but after finding out about it, 67 per cent advocated against such practices.
Charities that get empty property relief do not have to pay business rates on empty properties for three months or up to six months for industrial properties.
These properties could benefit from a further period of relief if they were occupied for a minimum six-week period, known as the reset period, before becoming vacant again.
The previous government made changes to extend the reset period of empty property relief from six to 13 weeks on 1 April 2024, after a consultation last year.
“With some property owners today finding it difficult to rent out their properties, due to their liability to pay business rates, they may choose to avoid paying business rates by ‘box-shifting’,” Temporary Use Aid said.
“This is a practice where commercial properties are left unoccupied for a certain period of time to claim empty rates relief, before ‘reoccupying’ it with boxes or other furniture, triggering a reset on empty rates relief and allowing them to restart the cycle.
“This is not only highly detrimental to charities, denying them access to commercial spaces otherwise left empty, but the loss of rates revenue to councils has led to service cuts, pushing many closer to bankruptcy, as seen with Birmingham City Council.”
The survey also found that charities need locations to operate from for long periods of time, with nearly half of respondents (49 per cent) saying they needed a space to occupy for at least two years.
“By working with charities, property owners can save more on business rates, more quickly than they would through ‘box-shifting’, while charities benefit from temporary residence,” Temporary Use Aid said.
“By working together, this provides key support for vulnerable residents.”