Landlord group hits back at 'archaic rent payment' claims

The British Property Federation (BPF) has hit back at claims that commercial landlords are behaving inflexibly towards struggling retailers.

Responding to claims by the British Retail Consortium (BRC), which yesterday published the findings of its Monthly Rent Snapshot Survey, the landlord group highlighted its "incredulity" at the BRC's stance, which called for more flexible arrangements in the light of cash-flow problems caused by the recession.

The retail organisation's survey found that just 12% of landlords are allowing retailers monthly rental terms, and claimed that many are still insisting on upfront quarterly rental payments. It also found that nearly 90% of respondents who have moved to a monthly payment agreement said that they had been, or would be, hit by higher charges.

Stephen Robertson, BRC director-general, said that the practice of quarterly rental payment "has no place in our modern world of email and online banking".

However, the BPF pointed out that the survey was based on just 19 firms, and said it did not show the whole picture, questioning BRC claims that quarterly rents were "wrong in principle".

It argued that the BRC's claims "fail to explain that many landlords have to also take account of their other interests, shareholders, pensioners, who rely on the income being generated by rents, and bankers, whose permissions for switching from quarterly to monthly terms... is usually necessary".

Liz Peace, chief executive of the BPF, added: "What this recession has shown is that where landlords and occupiers are willing to engage in dialogue the best results can be achieved, and it is disappointing therefore when one side acts unilaterally like this."

IMAGE: John Giles/PA Wire