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Rents move welcomed

Catherine Deshayes

Landlord flexible rents move is welcomed by retailers...

One of the UK's largest landlords today offered its tenants the chance to pay rents monthly in return for compensation.

Hermes, the post office pension fund, has agreed a change in payments from monthly to quarterly in return for financial compensation to recognise the resulting loss in the time value of money.  

The move, which is fully in line with the British Property Federation's (BPF) long held position on flexible leases, was immediately welcomed by the British Retail Consortium (BRC) which represents retailers.

Stephen Robertson, Director General of the BRC, said, "Hermes' announcement is a significant step forward for our campaign.

 "By agreeing to a fairer rents regime landlords will be contributing to the retail prosperity on which they themselves depend."

Ian Fletcher, Director of Commercial Policy at the BPF, said, "Hermes' stance simply reflects that of the Federation. We are glad that the BRC, in supporting Hermes, has accepted that it is fair for a landlord to be compensated on moving from quarterly to monthly terms on existing leases.

"That is something the retailers felt they could not agree to only three weeks ago. If they have changed their position that is to be welcomed and provides grounds for a constructive dialogue and resolution of this issue," added Mr Fletcher.

Source: www.bpf.org.uk