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Commercial property owners and investors may soon face increased costs when holding vacant premises if proposals currently being consulted on by the Department of Finance are taken forward. The consultation considers changes to Non-Domestic Vacant Rating (NDVR), together with the introduction of a proposed Business Growth Accelerator aimed at encouraging investment in existing commercial property. With the consultation due to close on 23 September 2026, the proposals are likely to be of interest to landlords, investors, occupiers and developers across Northern Ireland's commercial property market.
Proposed changes to vacant property rates
Under the current regime, vacant non-domestic property is generally liable for rates at 50% of the occupied rate, where no exemption or exclusion applies. An initial three-month exemption period and a number of existing exclusions are also available. The Department is consulting on a phased increase in NDVR liability, initially from 50% to 75% and subsequently to 100%. The timing of any increase remains under consideration. The existing exemption period and exclusions would remain unchanged. The stated objectives of the proposals include encouraging occupation, reducing long-term vacancy and supporting the productive use of commercial property.
What could this mean for property owners and investors?
For many investors, the cost of vacancy is already an important consideration when assessing a commercial property asset. Increased NDVR liability would add to the costs associated with vacant premises and may become a more significant factor in investment and asset management decisions.
The proposals could be particularly relevant in relation to:
Where a property includes vacant accommodation, rates liability is already one of a number of issues typically considered during a commercial property acquisition.
Lease events and vacant possession
The proposals highlight the importance of understanding when responsibility for rates transfers between parties. Periods of vacancy can arise following lease expiry, surrender, the exercise of break rights or during refurbishment works between occupancies. Where vacant rates are payable, liability will depend on the particular circumstances and the party entitled to possession of the premises. Landlords, tenants and prospective purchasers may therefore wish to ensure that rates liability is appropriately considered as part of wider arrangements relating to lease events, vacant possession and property transactions.
Encouraging investment: the Business Growth Accelerator
Alongside the proposed increase in vacant rates, the consultation also considers a Business Growth Accelerator designed to encourage investment in existing commercial premises. Under the proposal, any increase in rates arising from qualifying improvements would be deferred for a specified grace period. During that time, rates would continue to be calculated by reference to the property's pre-improvement valuation.
Qualifying improvements under consideration include:
The Department is also seeking views on the length of any grace period and the scope of qualifying improvements.
Looking ahead
Both proposals remain at consultation stage, and their practical impact will depend on the final form of any measures introduced. However, commercial property owners, investors and occupiers may wish to consider how increased vacant rates could affect the cost of holding property during periods of vacancy, particularly where portfolios include vacant accommodation, upcoming lease expiries or refurbishment projects.
The Department of Finance consultation on Non-Domestic Vacant Rating and the proposed Business Growth Accelerator closes at 5pm on 23 September 2026.
For more information, please contact Kevin Murphy, Partner, John Tougher, Partner, Jayne Adair, Senior Associate, or your usual ALG Real Estate Team Contact.
Date published: 16 September 2026
