Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

BRC gives retailers documents to help switch to monthly rents

The British Retail Consortium (BRC) is providing retailers with a draft letter and deed to ask landlords to switch from paying rents quarterly to monthly.

BRC has worked with legal advisors to draw up the documents which retailers can present to landlords, ahead of the next quarterly payment day on December 25.

Part of the BRC's template letter to landlords says: "Over the past year we have seen several very well-known retailers, and many smaller businesses, disappear from the high street due to adverse trading conditions resulting from serious cost inflation (labour, rent, rates and utilities) eroding margins and of course the impact of severe contractions in the credit markets.

"One very helpful change which, you could initiate would be to move our payment terms in our existing leases from quarterly in advance to monthly payments in advance. I believe this move is in line with modern business practices, having been accepted as best practice on the majority of new leases and would make cash flow management significantly easier."

The BRC said the move was the latest stage in its three-year campaign to persuade landlords to end "the ancient and unjustifiable practice of requiring rents be paid quarterly in advance".

It believes that monthly terms has become the norm on new leases but is calling on landlords to respond to the economic slowdown by offering flexibility on existing leases.

The BRC said the template letter and deed would especially help smaller retailers which may not have the expertise or resources to do this for themselves.

BRC director general Stephen Robertson said: "The BRC has made significant progress in establishing monthly rents as the norm but today's tough trading conditions mean the impact of paying three months in advance is that much greater.

"Seeing retailers driven to the wall is in no-one's interest. By agreeing to a fairer rents regime, landlords will be contributing to the retail prosperity on which they themselves depend.

"With these draft letters, we are offering the BRC's help to all retailers, but especially those who are unlikely to have the expertise or time to tackle landlords over making this change."

House of Fraser is among retailers who have negotiated to pay rents monthly on some of their stores. It will pay monthly on 15 shops and is in negotiation for more.

The documents for retailers are available below or at the BRC's dedicated website.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.