Retailers urge landlords to review rent terms

The British Retail Consortium (BRC) is urging commercial landlords to be more flexible with rental terms, as retailers struggle with the downturn.

Commercial landlords often demand rent on a quarterly basis, and business groups have argued for some time that monthly terms would ease pressure on retailers.

The BRC warned that today would be the toughest commercial rent day for at least 18 years, with the recession making seasonally low levels of revenue in the first quarter even worse.

The BRC's guide on how to ask landlords for new rent terms has been downloaded from their website over 50,000 times since the start of 2008.

Stephen Robertson, director-general of the BRC, said: "A thriving retail sector is essential for the health of landlords and the wider UK economy.

"An unrealistic payments regime can only increase the pressure on hard-pressed retailers and the jobs they support."

The BRC is also calling for the abolition of upward-only rent clauses, which allow landlords to increase rents each year regardless of economic conditions.

The British Property Federation (BPF) responded by saying that many property owners and investors were already allowing monthly rent payments and reducing service charges.

BPF chief executive Liz Peace said: "Demanding massive concessions will not only hurt future development but hit the financial well-being of savers - the general public - who are already suffering from tiny interest rates on deposits."