Following this year’s first quarter day (Thursday March 25), when quarterly rental payments are traditionally due on shops, the British Retail Consortium is calling on landlords to deliver on their promises to “go the extra mile to support firms”.
Reacting to what the British Property Federation is calling a pledge of support from landlords, the BRC says that while retail tenants welcome landlords’ public commitment to be more flexible on rental terms, a recent BRC survey showed that only 12% of retail property leases are on monthly rental terms.
The majority of retail tenants are still faced with quarterly rental payments upfront. And nearly 90% of survey respondents who had been allowed to move to monthly terms said they had been, or would be, penalised with higher charges.
Two-fifths said if they had been allowed to move to monthly rents it was just on a temporary basis – typically a year.
BRC director general Stephen Robertson says: “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.”