Retailers being targeted by rogue rating surveyors, Parliament hears

Kevin Hollinrake, MP for Thirsk and Malton in North Yorkshire, named and shamed rogue agents who he claimed are “effectively conning” businesses – including those in the retail, hospitality and leisure industries – into signing long term contracts for reliefs they would have received anyway and then pursuing them through the courts for payments.

The Westminster debate called for industry regulation to protect vulnerable businesses who are suffering financial distress, in part because of high business rates, from falling victim to such rogue rating surveyors.

Hollinrake has called for the Insolvency Service to step in, but so far this body has not agreed that it is their role to regulate. The rating team at Colliers believes the Royal Institute of Chartered Surveyors urgently needs to step in and regulate the ratings industry.

Colliers said some retail and hospitality businesses, unaware they are entitled to reliefs, are being targeted by the rogue agents to secure business reliefs or Covid reliefs despite the fact the businesses are in sectors that would have received them for free by writing to their local authorities. They are then charged an annual fee of up to 52% of the “saving” for the length of the contract. In some cases, businesses have been tied in for 10 or 12 years.

John Webber, head of business rates at Colliers, said: “We believe the situation will only get worse after the end of June, when the 100% rates holiday comes to an end for businesses in the retail, hospitality and leisure industries and government support lessens. Businesses must beware of false promises.”

Webber added: “We have long been campaigning for the rating industry to be properly regulated and we are supportive of Kevin Hollinrake MP raising this issue in Parliament. We believe there should be a register of appeals professionals, which should be regulated by the RICS, in the same way the FCA regulates financial advisors.

“The lack of such a register gives a cowboy element the opportunity to gain credibility and persuade vulnerable businesses that it can save them serious funds. In the current crisis this situation is getting more out of hand. We call the RICS to take robust measures to effectively show these cowboys for what they are and to take some leadership on a problem which has existed for many years.”