British Property Forum supports monthly leases

Landlords encouraged to accept monthly rents

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The British Property Forum said monthly payment terms should be considered on new leases and renewals, at the Owners' and Occupiers' Property Forum meeting on Wednesday.

The Forum said that over the last year monthly payment terms had been agreed on new lettings and, in keeping with the 2007 Lease Code, should be considered going forward.

In return, it was agreed that it was acceptable practice to ask for payment by electronic means. The move will be welcomed by retailers who have been battling with landlords to negotiate from quarterly to monthly payment terms.

Landlords were asked to be open to discussions on revising existing lease terms to incorporate monthly payments.

Landlords have also been encouraged to "respond positively" to requests for changes to payment terms that could ease cash flow pressures for retailers facing financial difficulties.

But the Forum has also advised retailers to contact their landlords at the "earliest opportunity" to make rental payment changes.