Commercial landlords back BRC to help struggling retailers

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by Lin Freestone

The British Property Federation (BPF) has been campaigning for property owners to offer retailers a helping hand during the economic downturn.

The BPF, which represents the UK property industry, has said that its members will endeavour to work with their tenants to find solutions to any financial problems they may face as a result of rental payments.

BPF’s chief executive Liz Peace has said that landlords are always willing to discuss flexible terms with their customers, but any changes would be negotiated into the contract and would take account of the financial position of both sides.

Although the average new commercial lease is now 5.7 years, some retailers have complained of being in financial trouble because of having to pay rent three months in advance.

Landlords have said they would be happy to consider monthly payment terms as part of new lease negotiations, which has been the focus of the British Retail Consortium’s (BRC) two-year campaign. It is not in a landlord’s interest to see a tenant go under, so where tenants are in trouble, they should speak to their landlord. Retailers who are in trouble will find landlords willing to explore options to help them.

The BPF’s Commercial Landlord Accreditation Scheme (CLAS) offers tenants the security of knowing their landlord abides by the highest standards of service. It guides businesses towards landlords who offer a wider range of flexible, manageable leases, who understand business needs and who deal with their customers’ complaints fairly and quickly.

Many BPF members are signed up to CLAS. The BPF is encouraging more landlords to sign up to it via www.clascheme.org.uk.