Landlords have hit back at criticism from retailers by backing a campaign by the British Retail Consortium to help struggling retailers during the economic downturn.

The British Property Federation (BPF) said that it will endeavour to work with tenants to try to find solutions for them if they hit financial difficulties. Landlords have insisted that they would be happy to look at monthly payment terms as part of new lease negotiations.

The news comes as some of the UK’s biggest retailers vowed to unite against quarterly rental payments. They hope to appoint representatives to negotiate monthly terms to help with cash flow as the credit crunch continues to bite.

BPF chief executive Liz Peace said: “It goes without saying that landlords want to help any tenant genuinely in trouble. Landlords are committed to providing their customers with a high quality service. It is not in a landlord's interests to see a tenant go under, so where tenants are in trouble they should speak to their landlord. Retailers who are in trouble will find landlords willing to explore options to help them.

“Commercial landlords are always willing to discuss flexible terms with their customers, but any changes would have to be negotiated into the contract and would take account of the financial position of both sides.”

BRC director-general Stephen Robertson welcomed the BPF’s actions. He said: “Following our successful monthly rent campaign, rents are being offered on monthly terms for new leases almost as standard practice. The leadership of BPF members has helped drive this, and we encourage other commercial landlords to follow their lead.”

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