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Saving For a Space Ship

Uk Business Property Demand At Decade Low

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http://www.ft.com/cms/s/0/5cd57cdc-5699-11...?nclick_check=1

Published: July 21 2008 00:08

Demand for commercial property has fallen to its lowest level in more than a decade, intensifying pressure on landlords who are facing demands to rip up rental agreements in the tough economic climate.

The Royal Institution of Chartered Surveyors says on Monday that the outlook for commercial property has not been worse since it started its survey a decade ago, with weaker retail sales, frozen expansion plans among the big banks and plentiful office space.

The Rics survey measures the gap between the proportion of its members reporting a fall in demand for commercial property and a rise. That gap between pessimistic and optimistic surveyors now stands at 50 per cent, compared with 31 per cent in the first quarter.

Confidence in the retail sector has been hit hardest, with 64 per cent more surveyors reporting a fall than a rise in demand.

The findings will add momentum to a new consortium of retailers, including Sir Philip Green’s Arcadia, which is this week expected to appoint a “rents champion” to lead a campaign against landlords.

The group wants to scrap quarterly payments in favour of monthly rents, a move that could save £145m a year, according to the British Retail Consortium, which has been campaigning on the issue since 2006.

The move will not be welcomed by commercial landlords, including most listed property companies and pension funds, which have seen more than 20 per cent wiped off the value of many properties during a 12-month cyclical downturn.

Many landlords are open to negotiations on leases but one said on Sunday it was unlikely that contracts would be rewritten.

Edit: Related hpc post on bold text part of article

http://www.housepricecrash.co.uk/forum/ind...showtopic=82653

Edited by Saving For a Space Ship

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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