RETAILERS WELCOME LANDLORD PLAN
Listed under: News
Published: Friday, July 25, 2008
Commercial landlords have backed a campaign by the British Retail Consortium (BRC) to offer retailers a helping hand during the economic downturn.
Although the average new commercial lease is now 5.7 years, some retailers have complained of financial trouble because stemming from having to pay rent three months in advance. Landlords have said they would be happy to consider monthly payment terms as part of new lease negotiations.
Liz Peace, chief executive at the British Property Federation (BPF) which represents the UK property industry, says, "It goes without saying that landlords want to help any tenant genuinely in trouble. Landlords are committed to providing their customers with a high quality service. It is not in a landlord's interests to see a tenant go under.
“Commercial landlords are always willing to discuss flexible terms with their customers – but any changes would have to be negotiated into the contract and would take account of the financial position of both sides.”
The news was received positively by retailers. Adam Rushton at Rushton's Delicatessen in Newark says, “It is a positive thing. I am lucky to have a very good landlord, but I sympathise with those on the high street who have to deal with someone greedy.”
However, some believed this move by landlord to support retailers would not change the root of the financial worries for some shops. Rob Williams at Blackeney Delicatessen says, “I guess it is a good thing if someone is really struggling. Times are hard and it's the right moment to show a bit of compassion. However, it only seems like a short term solution when there's no better prospects.”
Liz Peace, chief executive at the British Property Federation (BPF) which represents the UK property industry, says, "It goes without saying that landlords want to help any tenant genuinely in trouble. Landlords are committed to providing their customers with a high quality service. It is not in a landlord's interests to see a tenant go under.
“Commercial landlords are always willing to discuss flexible terms with their customers – but any changes would have to be negotiated into the contract and would take account of the financial position of both sides.”
The news was received positively by retailers. Adam Rushton at Rushton's Delicatessen in Newark says, “It is a positive thing. I am lucky to have a very good landlord, but I sympathise with those on the high street who have to deal with someone greedy.”
However, some believed this move by landlord to support retailers would not change the root of the financial worries for some shops. Rob Williams at Blackeney Delicatessen says, “I guess it is a good thing if someone is really struggling. Times are hard and it's the right moment to show a bit of compassion. However, it only seems like a short term solution when there's no better prospects.”
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I am one of those who has to deal with a greedy landlord. If I want to pay my rent monthly rather than quarterly they charge me £250 + VAT and interest at 8% above base rate for the privilege. I want to move out and have offered that they keep the deposit but they won’t even do that as officially the earliest I can break is next June (2009). If he won’t back down I could end up losing my house I as am the personal guarantor, they know this but they don’t care. Incidentally I checked them out on companies house and they make £1,000,000 profit a year - yes that’s profit! And they are trying to sting me for about £2,500 at the moment. Sometimes I wonder if we are in the 21st century or the 16th. My landlords are Hargreaves - yes I will name and shame so if you are in Sussex or thereabouts avoid them like the plague!