Ryan Bembridge is Editor of PropertyWire
Last week we reported that the plan to force commercial landlords to rent out shops or lose them to a third party is gathering steam.
While the plan was first unveiled in May last year, a consultation period is currently under way which closes on the 23rd June, so interested parties should make themselves heard while they can.
Speaking personally, I think it’s a positive move that should serve to revitalise high streets across the UK.
While the growth of online retail isn’t going anywhere, there’s an element of ‘if you build it, they will come’ when it comes to populating a high street with businesses.
As a teenager I found this phenomenon out myself in my home town of Hertford, Hertfordshire. For a while we had a great second-hand video games shop which I visited all the time. But then one day it closed, which surprised me given how much I’d spent in there, and suddenly I had very little incentive to visit that part of town.
As with all proposals like this the question is how it will work in practice.
Will commercial landlords be penalised for failing to let out their properties? They probably should be to some extent, otherwise a number would just lazily leave it to the council to sort out finding a tenant.
Will landlords be forced to accept lower rents to accept a commercial tenant?
That could be great for some low-cost businesses, and if it drove some commercial landlords out of the market I’m not sure it’s a bad thing. You can’t make an omelette without breaking a few eggs, and a commercial landlord with no interest in letting out their property surely isn’t good for society.
In many ways landlords who fail to do anything with their property mirrors what we’re seeing in the residential space, where ‘buy-to-let leave’ landlords have served to price out locals without offering any return in the form of housing for tenants.
Property is finite and it really should be used for something.
Another question is whether the proposal will look to attract a variety of businesses to a town or city – rather than too many coffee shops, or yet another Greggs (even in the North there’s a limit) for example.
Could the council pick and choose which business would be most beneficial, rather than simply who offers the most in commercial rent?
There are clearly lots of details to sort out, but I think the plan is a surprisingly radical and progressive one from this government.
As an aside, I’m happy to have returned in my second spell as Editor.
I’ll do my best to update you on the key goings on across the property market in the months ahead, whether you’re a investor, developer or agent.
