Payment three months in advance must end
The British Retail Consortium (BRC) has called for an end to the standard practice of payment of three months' rent in advance by retailers.

The practice is costing retailers£145 million a year, the industry lobby group said, and is at odds with standard business procedures, where payment is normally required only after goods and services have been received.

The BRC said monthly payments would ease cashflow pressures, particularly for smaller retailers. The organisation also pointed out it is in the long-term interest of property firms to encourage a thriving retail sector.

A survey conducted by the BRC found that 60 per cent of commercial tenants were unhappy with their landlords.

BRC director-general Kevin Hawkins will write to the chief executives of Britain's major retail landlords, asking them to consider accepting a month's payment in advance instead.

Hawkins said: 'Over the past 18 months, we have seen a number of well-known retailers disappear from the high street. Rents, rates, service charges and utility bills are now increasing well above inflation at a time when weak consumer confidence and strong competition mean the prices retailers can charge is actually falling.'

Names of landlords complying with the new proposals will be published by the BRC.

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