Although this is if great if you are looking to change of use from say, A1 to A4 but the vast majority of high street units operate within the A1 user class and cafes operating within A3. It also assumes that landlords will consent to the proposed use of the premises and its change of use. Some landlords are just not that receptive.

‘Critics say ‘the high level of rents and rates are a more serious hurdle than paperwork for new shopkeepers…..’

Clients of RPS agree. Rental, although a high cost of occupation is negotiable and if landlords want to rent premises then they must set realistic levels. By return tenants can negotiate incentives and / or lower rents that result of overall lower occupancy costs.

Business rates however are neither negotiable nor reflective of current commercial leasing deals. Rents are lowering but rates demands are not. This is the same shout coming from many retailers.

We believe the current system of 3 months rates relief at the end of a 3 month tenancy should be turned on its head. Why not offer the relief at the start of the tenancy? Giving the new occupier lower occupancy costs at the start of their business and higher demand for renting retail premises that benefits the landlords.

RPS 22/07/2012

http://www.bbc.co.uk/news/business-18920027