The British Retail Consortium (BRC) has reported a dramatic 13.9% rise in overall vacancy rates across the UK in the second quarter of 2023. Their findings also revealed that 6,000 retail outlets have closed their doors in the past five years. Financial pressures, such as rising insurance and supply chain costs, are thought to be the main cause of the exodus.
Property managers and landlords are struggling to fill the spaces left by the likes of Arcadia Group, who collapsed into administration in 2021. Despite incentives and reliefs, retailers are finding it difficult to offset the burden of increasing business rates and commercial property rents. As a result, footfall remains relatively unchanged compared to the same period in 2022, and decreased in six UK counties and regions.
Helen Dickinson, CEO of the BRC, commented in September: “The chancellor must freeze [business] rates to help keep a lid on retailers’ already high costs. A £400m rates rise will cost jobs, harm the economy, and damage the vibrancy of our town and city centres.”
Anthony Hughes, Managing Director of RVA Surveyors, said: “Consumers and businesses are time poor. Online retailers offer greater convenience to consumers. This equals less foot traffic in shopping centres, and high streets. Big or small, if the audience is not there, businesses are going to struggle. Reliefs are designed to help offset the disadvantages, but with significant increases expected early next year, many may still face having to close their doors.”
Local authorities have a responsibility to continue investing in these social spaces. Warwickshire Council, for example, are relaunching a Christmas campaign to encourage locals to shop at independent retailers. Meanwhile, Habitat for Humanity (Great Britain) estimated that 7,000 commercial properties owned by local authorities in England, Scotland, and Wales have been vacant for more than 12 months by 2020.
Anthony Hughes concluded: “Commercial premises aren’t empty because landlords want to keep it that way. They want people in there and, ideally, on long-term leases. Removing reliefs for landlords and empty properties isn’t going to help anyone in the long run; let alone our high streets.”
According to the British Retail Consortium (BRC), vacancy rates across the UK have increased by 13.9% in the second quarter of 2023, resulting in 6,000 retail outlets closing their doors in the last five years. Financial pressures, such as rising insurance and supply chain costs, have been cited as the main reason for the exodus.
Property managers and landlords are finding it difficult to fill the spaces left by the likes of Arcadia Group, due to high rents and business rates. Helen Dickinson, CEO of the BRC, commented in September: “The chancellor must freeze [business] rates to help keep a lid on retailers’ already high costs. A £400m rates rise will cost jobs, harm the economy, and damage the vibrancy of our town and city centres.”
Despite incentives and reliefs, retailers are still struggling to offset the burden of increasing business rates and commercial property rents, resulting in footfall remaining relatively unchanged compared to the same period in 2022.
Local authorities must continue investing in these social spaces. Warwickshire Council, for example, are relaunching a Christmas campaign to encourage locals to shop at independent retailers. Anthony Hughes, Managing Director of RVA Surveyors, said: “Removing reliefs for landlords and empty properties isn’t going to help anyone in the long run; let alone our high streets.”
Habitat for Humanity (Great Britain) estimated that 7,000 commercial properties owned by local authorities in England, Scotland, and Wales have been vacant for more than 12 months by 2020, highlighting the need for continued investment in these spaces.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.