The British Retail Consortium (BRC) is calling on landlords to deliver on their promises to “go the extra mile to support firms”.
A recent survey conducted by the BRC shows that only 12% of shop property leases are on monthly rental terms despite landlords’ public commitment to be more flexible on rental terms.
Stephen Robertson, British Retail Consortium Director General, said:
“We welcome this public commitment by landlords to be more flexible, but they need to back up their words with action.
“Our objection to quarterly payments has always been a point of principle – not just about helping businesses through tough times. Monthly rents are now more common on new leases, but our figures show many landlords have yet to deliver the flexibility they promise – especially on existing leases”
Almost 90% of shop owners, who have been authorised the move to monthly rental payments, said that they had been or will be, penalised with higher charges. Two-fifths said it is allowed on a temporary basis, on average of 12 months.
It is apparent that the majority of retail tenants are still faced with the outdated practice of quarterly rental payments. The retailers’ organisation has always said quarterly rental terms are wrong in principle and obsolete.
The BRC’s campaign has been ongoing since before the recession. Although, the impact of the downturn has given the campaign a new necessity as the extra costs and cash flow effects of paying rents three months upfront have become more significant.
Similar Posts:
- Retailers need friendly Budget in March
- Shop price inflation rises
- Landlords get easier access to information
- Turning Home ‘Buyers’ Into Renters
- Shops caution over increasing minimum wage
