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BPF welcomes retail service charge initiative

The British Property Federation (BPF) has welcomed the decision by two of its largest members to reduce service charges, as a trial, at two northern shopping centres.

Land Securities and British Land are cutting service charges at the Meadowhall Shopping Centre in Sheffield and White Rose Shopping Centre in Leeds.

The move comes as part of discussions that have been taking place between a group of landlords and retailers, and their trade body representatives, over the past few months on how the two sides can cope with the economic downturn.

BPF chief executive, Liz Peace, said:

“Our members are deeply aware of the difficulties that many of their tenants are facing, and they are keen to help those in genuine financial difficulty to weather the current economic conditions. This initiative by Land Securities and British Land is a great demonstration of the practical measures they are prepared to take.

“However, discussions must happen between landlords and tenants on a case by case basis. No-one wants to see retailers go out of business, but landlords are businesses too and they are also being badly affected by the downturn. Our position has always been that the two sides must talk and this is a great example of how it can work in practice.”