Retail businesses are going bankrupt, shop premises are empty, retail rents are falling and the value of commercial properties are in decline.
Property companies are trying hard to divest. The government has told Councils not to buy in High Streets and shopping centres, as property prices and rental incomes are likely to collapse, so the debt cannot be repaid.
In response, the Liberal Democrat run administration at St Albans and District Council intends to speculate £18.75m to buy a part of Harpenden High Street and buy a large building on St Peter’s St in St Albans for c£7M. This will be financed through 107% loans over 50 years. The Council is small, only raising c£10M per annum in Council tax.
Conservative Councillors will continue to oppose this desperate plan, devised to deliver a few years revenue to get this administration out of the black hole they are creating in the Council finances.
Local Council tax payers will be the losers from this, covering this debt for decades to come.
