Few rent reviews allowing change to monthly payments

Friday, December 18, 2009

Retailers mostly paying weekly rather than monthly.

By Ashley Brunskill

Only a small amount of landlords are allowing businesses to switch to paying their rent monthly when rent reviews are carried out.

A survey carried out by the British Retail Consortium (BRC) provided the insight to retailers rental arrangements, reports Property Week.

The BRC said that just 12 per cent of retail property leases are now on monthly terms.

Meanwhile, almost 90 per cent of respondents who had been allowed to move to monthly terms said they had been or would be landed with paying higher charges.

Stephen Robertson, director general of the BRC, said: "It's been a tough year with many thousands of shops falling vacant. Helping out before that happens is in the interests of both landlords and retailers."

He added that thanks to the BRC's work, good progress has been made in establishing monthly rental terms as the standard on new leases.

The BRC is the leading trade association for UK retailing.

Source: ask-re The Property People LLP