News

Property Owners Wait And See If They’ll Be Allowed To Collect Rent Again

JD Sports at Liverpool ONE
Photo credit: Courtesy of Liverpool ONE

The government is set to make a decision in the next week on whether to end the current ban on commercial tenant evictions and using the court system to collect rent.

The British Property Federation has written to the government urging it to end the moratoriums, which are scheduled to run until 30 September, The Times reported.

The BPF is arguing that well-capitalised tenants are using the bans to avoid paying rent when they can afford to do so. Tenants have argued that the protections are necessary to help businesses being asked to pay rent even though their revenue has been badly hit by the impact of the coronavirus pandemic.

Bisnow is hosting a webinar looking at how landlords and tenants can work together to save the UK leisure industry on 10 September at 1.30pm. To listen, sign up here.

This week it was JD Sport in the spotlight. The company has been trying to renegotiate rents with landlords even though it has £765M of cash on its balance sheet and sales have dropped only 10% this year.

“Landlords between 2007 and 2015 were increasing rent on a compound annual growth rate of 4-5 per cent every year and they didn’t give a flying toss if I was making any money or not because at the time demand exceeded supply,” JD Sports Executive Peter Cowgill told The Times. “Well guess what — the boot is on the other foot now.”

The counterpoint for landlords was put by Caperon Managing Partner Zvi Noé.

“If you have signed a lease and you can pay, then you should pay,” he said. “Retailers might have a bad year and argue they should pay less, but if they make a multimillion-pound profit another year, they don’t offer their landlord a bonus.”

Continue reading this story with a free account

Log in or register

Bisnow is hosting a webinar looking at how landlords and tenants can work together to save the UK leisure industry on 10 September at 1.30pm. To listen, sign up here. 

Sign up for more articles like this
Subscribe to Bisnow's London Newsletters
Related Stories

Avison Young Had Assets Frozen By Bank Over Unpaid Taxes

Philly Retail Momentum Spills From Rittenhouse Into Northern Liberties

Forget Buildings, Retailers Are Leasing Environments

Equinix Bets Big On Slough Data Centres: The London Deal Sheet

Redevco Buys 560K SF Jaguar Land Rover Logistics Hub In UK IOS Push

Immigration Crackdowns Dealt LA Businesses A Multimillion‑Dollar Blow

Mamdani Adds Millions To Program Helping Retailers Negotiate With Landlords

Unite Looks To Reshape Student Portfolio After £417M First-Half Loss

Arada Pushes Forward £2.5B Docklands Scheme: The London Deal Sheet

How JLL Uses Experiences To Give Retail Customers 'A Reason To Be There'

Culver Commons To Bring New Dining, Retail Options To Bustling Suburban Los Angeles Location

Sony Reopening Hollywood ArcLight, Cinerama Dome Theaters