Rogue business rates agents are on the rise, property adviser warns

Small hospitality businesses are increasingly at risk of rogue rating surveys, a property consultant has warned.

According to the business rates team at Colliers, the potential rise in scams will coincide with the closing of the 2017 list at the end of March 2023 and the introduction of a new 2023 rating revaluation from April 1.

Revaluations are designed to align business rate bills with changes in the wider property market.

A spokesperson for Colliers revealed that out of roughly 1.9m rate payers, 700,000 of them do not currently pay business rates due to relief, but that this system would be subject to change under new legislation.

It was suggested that the situation will worsen if the government introduces annual returns and the ‘duty to notify' system as part of its business rates reforms, which will add further administrative burdens to the rate payer.

The creation of a two-tier system under the latest revaluation may result in some businesses missing out on the reduction in their business rate bills.

Colliers said that this could lead to rogue agents exploiting the period of upheaval to approach hospitality operators, who would claim to offer businesses savings "for a fee".

The group also investigated so-called rating companies that had no qualified members.

It has subsequently called on the government to regulate the rating surveying profession to protect businesses from such abuse.

John Webber, head of business rates at Colliers, said: "Changes will result in these 700,000 ratepayers being required to send one or more pieces of information annually to the VOA [Valuation Office Agency], involving them in a bureaucratic exercise that plays into the hands of rogue "advisers" who will claim to advise them. We are really worried about the consequences of this new legislation."

"The problem is the industry is totally unregulated – anyone can set up and claim they are experts. That is why we have been calling for RICS or failing that, government regulation and for there to be a register of rating advisors, similar to the FCA to make sure the cowboy and criminal element that prey on businesses are kept at bay."