Britain's high street seeks government rent support
Covid-19 renders thousands of retailers unable to pay their rents
Bengaluru
BRITAIN'S commercial tenants and landlords have the asked the government for rental support, saying the novel coronavirus pandemic makes it impossible for thousands of retailers to pay their rents.
The scale of the crisis facing the retail sector is grave and businesses are now at risk of administration due to the impact of the virus, trade bodies British Retail Consortium and British Property Federation wrote in a letter to the government on Friday.
The letter proposed a Furloughed Space Grant Scheme (FSGS) that would mirror similar schemes being introduced in other European countries, with the state supporting the fixed costs of businesses that have experienced dramatic falls in turnover due to the coronavirus outbreak.
While sales may have increased in certain sectors such as food retailing and household items, these are temporary and the majority of business are experiencing dramatic falls in turnover of up to 100 per cent, the trade bodies wrote.
British retail property owners and tenants are becoming increasingly weary as they work together to defer rent payments and find other ways for shops, businesses and landlords to cope with a countrywide shutdown due to the coronavirus pandemic.
A NEWSLETTER FOR YOU
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
Mall operator Intu said last month it received only 29 per cent of rent in the March quarter, and requested its banks to waive its borrowing terms.
"Unless further action is taken, we will see many otherwise viable companies file for administration, with the consequent loss of jobs, devastating impact on communities and high streets, and increased cost burden on public funds, not to mention threats to the income generation for pension funds, amongst others", the letter said.
The government has already taken steps to prevent hardships for retailers by passing a law last month to prevent landlords from evicting commercial tenants who cannot pay rents.
Department store chain Debenhams and fashion brands Oasis and Warehouse are among the well-known British high-street businesses to have fallen into financial difficulties in the past couple of weeks due to inability to pay rent for the period during the lockdown. REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
Country Garden delays earnings report, Vanke net tumbles as woes deepen
UK landlords bet on green offices as hybrid work makes tenants picky
How Country Garden plays into China’s property mess
Older US office buildings left ‘stranded’, Morgan Stanley says
Chinese property developers’ 2023 results hit by sector downturn
US pending home sales bounce back after slump in January