Government moves to squeeze more money from business rates will mean prices plummet on empty properties, a Midlands commercial property expert has warned.

Redditch-based John Truslove has written to clients to warn them that prices and rents could tumble.

Rates relief for vacant buildings with a rateable value under £18,000 is being scrapped. From April the threshold for exemption will drop to a rateable value of just £2,600.

It is reckoned this will pull in an extra £400 million a year.

In his letter Mr Truslove says there appears to be no way to avoid payment despite some in the sector coming up with "dubious attempts at a dodge" - albeit he is still investigating the position.

He went on: "What will almost certainly happen is that there will be an increase in vacant commercial property available on the market and this will probably mean prices and rents have to be trimmed somewhat.

"Clearly, by what amount is pure speculation at present, but it would not surprise me if it was at least five per cent or ten per cent this year."

Mr Truslove estimates that a 50,000 sq ft factory standing empty could cost its owner £100,000 a year in business rates.

He has branded the Government's decision "outrageous".

For more information on John Truslove, view the website here: www.johntruslove.com