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Almost 8,000 shops now 'have no retail use'

Published: 10 November 2014
Britain's shop vacancy rate in October remained at its lowest level since June 2010, but one in three empty shops have now been unoccupied for over three years.
Almost 8,000 shops now 'have no retail use'
Figures released today by the Local Data Company show that shop vacancy remained at 13.2% in October, while the overall retail and leisure vacancy rate also stood still, at 11.8%.

In the top 650 towns across Great Britain 7,697 out of 25,393 shops have now been empty for over three years, and have little hope of reoccupation, according to the LDC.

LDC director Matthew Hopkinson said that October had been "a flat month with regards any change in the country's vacancy rates. That said, what this data shows is the balance in supply and demand that we have been seeing in 2014. The increase in development activity may change this but what is very clear - and is reinforced by the number of empty shops - is that the issue of over-supply in many locations has not been dealt with.

"New data that we will track every month from now on shows that one in three shops have remained vacant for more than three years. This equates to nearly 8,000 shops that need to be demolished or re-developed as clearly there is no retail use for them.

"38.9% of the empty shops in the top 650 towns have been vacant for less than a year, which is an acceptable situation, but that means that the vast majority (61.1%) have been vacant for more than a year, with landlords having to pay business rates with limited hope of reoccupation."

Comments

10 November 2014 00:02:00
By Daniel Harrison
The author of the comment Greed!(who hid behind the cloak of anonymity by not leaving their name) displays an incredible lack of knowledge and ignorance of commercial Landlords.
Does the author seriously believe Landlords would rather have their properties remain vacant for lengthy periods rather than have them tenanted ?

I am a commercial Landlord of a number of retail units in various towns throughout the North of England. Many commercial Landlords are not large multi national corporate companies but small family businesses (such as ours)or business people who purchased their property to work from and then kept it when they retired and rely upon the rental income as their main source of income.
The recession has hurt our family business hard. Tenants who had been in situ for many years have entered into administration leaving us with vacant properties to fill. Those properties have had virtually no repairs made to them by the previous tenants meaning that we have had to repair them at a cost of tens of thousands of pounds just to put them in a safe condition, let alone a suitable letting condition.

The quadruple "whammy" of no rental income, large repair costs, increased insurance premiums and business rates liability, means that many Landlords simply can't afford to continue and have little option but to sell their properties or face the prospect of them being repossessed by a their lender.

It would be far better for Councils to provide grants or business rates rebates to Landlords who spend money improving their units and helping them. This would attract investment and the amount of derelict/vacant shops would fall as the areas would be reinvigorated. Sadly the current political atmosphere of all parties is to portray Landlords (both commercial and residential)as greedy and a cause of society's ill's.
10 November 2014 00:01:00
By Never you mind
"landlords having to pay business rates with limited hope of reoccupation"

Awww isn't that too bad, if they wasn't greedy in the first place with rental rates they would have tenants.

I live in Bolton, this is a fine example of this, the town centre looks like a ghost town, all that exist are betting shops, charity and poundlands, all the major companies have gone, HMV, Currys, Homebase.

The market place is full of empty units, just the same on the way out of Bolton too, I counted 6 large empty retail units the other day.

I expect that this is the same in quite a few town centres now, the UK is dead or will be soon.




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