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BRC urges commercial property industry to help retailers

The British Retail Consortium (BRC) is calling on all commercial property landlords to allow tenants to pay their rent monthly in advance.

Its move follows the announcement from pension fund manager Hermes that it will accept monthly advance terms in place of traditional quarterly ones on existing leases.

The BRC believes demanding rents every three months in advance is wrong in principle and has been given a new urgency in recent times as costs and cash flow difficulties become more significant.

It has campaigned for two years and seen monthly terms become the norm on new and re-signed leases but Hermes is the first landlord to agree to renegotiate existing leases.

BRC director general Stephen Robertson says Hermes' move is a "significant step forward" and said there is no reason why commercial property landlords cannot offer flexibility in rent payments.

"By agreeing to a fairer rents regime, landlords will be contributing to the retail prosperity on which they themselves depend," he added.

Earlier this month the BRC warned that retailers could be facing even tougher times when the 2010 revaluation takes place.

It warned that rates bills could increase by 16%.ADNFCR-1169-ID-18800825-ADNFCR

29 September 2008.

© 2008 Adfero Ltd. All rights reserved. Unless expressly stated any views are not those of Shepherd and Wedderburn. News supplied by Adfero DirectNews.

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