Call for landlords to lower business rents in Shrewsbury
Tuesday 27th September 2011, 2:24PM BST.
Landlords should lower the rates they charge to businesses in the heart of Shrewsbury in order to reduce the number of empty shops in the town centre, a councillor has claimed.
Town councillor Andrew Wagner said small businesses often struggled to make a profit due to the rents they had to pay, which could be tens of thousands of pounds each year.
He said the issue was a major problem for the town.
“One of the major things in the town centre is landlords asking too much for leases,” he said.
“People can’t afford the leases and that is why there is so many empty shops.
“Then they are taken over by charity shops as they get really, really reduced rates.”
Councillor Wagner said it was difficult to persuade landlords to reduce rents.
“It is an uphill struggle in the current climate where at the moment landlords want money for their premier locations,” he said.
“But landlords in the town centre need to reduce their rates massively for businesses to make a start or think about coming to Shrewsbury.
“It does put people off when it is £50,000 for rent, £20,000 for rates, then electric, then gas, then you have got to pay staff and then all the stuff to buy for the business.”
He added: “If rents were lowered, you would get more people taking a chance.”
But Charles Howell, at commercial property consultants Pooks, said it was unfair to blame landlords.
“Rents are driven by supply and demand,” he said.
“I could honestly show you one or two shops where rents are lower than 20 years ago, because demand has changed.”
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With Supply outstripping demand, these stingy landlords will need to bring down their rates or they get will nothing!
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And the council could do their bit by reducing the rates these businesses pay. Shall we hold our breath?
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You have hit the nail on the head there Colin. How the council have the audacity to come out with that one given their sleight of hand when it comes to accountability is way beyond rational thought. Apparently we are expecting a hike in our council tax to help fund the fire service whilst having to bear the brunt of a twenty-five percent cut in public services.
I am beginning to think that our councillors were gazing out of the windows during junior school elementary maths lessons.
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All the council needs to do is make landlords with empty properties pay a portion of their rates and you will see the rents plummet.
At the moment the landlords are takign the mick with so many empty premises all over… and yet stioll the council let them build more… Why?
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There’s no telling them though.
I was in Madeley commercial centre today and see that it has a new charity shop gracing it, usually the sign that rents are too high and that they’ve had to offer it to charity to ensure occupancy.
Nothing against charities, but I would have preferred to see a business in there selling stuff and employing people.
That means that opposite Tesco entrance side, there is now a betting shop, two fast food shops and a charity shop.
What a proud achievement! Thanks to high rent demands from the development landlord and agents, Madeley can now boast of having its own archetypal High Street to match the hundreds of others all around the country.
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This statement is laughable…it is the business rates set by Government that are challenging small businesses. Landlords can move rent if able to negotiate to ensure tenants (otherwise how else would they gain any income) but business rates never change.
I don’t see the local authorities battering Government to tackle the elements that fill their pockets along with the other taxes – VAT etc – but are happy to point the finger at private sector as the one’s to blame and yet do nothing.
If the Government are so happy for people to begin businesses to get things moving its about time they practice what they preach – it can all be down to banks lending and landlords!! Where’s this Big Society ethos?
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Never happen, private tenants are struggling to pay rent on their homes assisted by the government through HB it has not pushed down the rents.
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And the genius councillors and officers at shirehall want to build another shopping centre?!?
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Market forces will sort this out and find the right level. There are all kinds of deals done to ensure that landlords can point to headline rents being stable, whilst making rental concessions documented by way of side letters that are not dislcosed to the open market.
If landlords hold out for high rents for too long, they will go bust. It rarely happens.
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Its always the rents to come down , why cant the same deal charity shops have for reduced rates be applicable to small indepentent shops as well.
Keeps a better diversity of shops in the High Street.
Also parking charges if its expensive to park why would you come into shop?
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