The high street is in a state of flux, facing challenges from high rents, dilapidated properties, and the evolving needs of modern businesses and consumers.
Vacancy Rates and High Rents
An article I read highlighted the issue of high vacancy rates in high streets. Interestingly, our town, Chippenham, boasts a relatively low vacancy rate of 8%. Despite this, high rents remain a significant barrier for independent retailers. For example, a former Clinton Cards shop is now available for £1650 per month, a prohibitive cost for many small businesses. Some contributors suggest that large investors prefer to keep properties vacant rather than lowering rents, maintaining the balance sheet’s appearance rather than supporting local commerce.
The Role of Local Councils
Local councils play a crucial role in maintaining high street properties. Unfortunately, many councils lack the funds to properly manage and repair units after tenants vacate. This leads to a cycle of decline where properties remain in a state of disrepair, deterring potential new tenants. Somerset Council, for instance, has recently put up all their abandoned properties for sale due to insufficient funds for repairs. This situation underscores the need for councils to employ qualified surveyors and enforce lease agreements to ensure properties are maintained adequately.
Landlords and Property Management
Proper property management is vital to maintaining a vibrant high street. Landlords should ensure that tenants fulfill their lease obligations, particularly regarding repairs. Holding deposits until properties are returned in good condition can prevent long-term vacancies. Moreover, landlords should consider offering incentives, such as rent-free periods, to help small businesses get established. This approach not only supports the local economy but also enhances the appeal of high street properties.
Business Rates: A Complex System
One of the major financial burdens for high street businesses is business rates. These rates are determined by the rateable value of the property, which is often based on outdated valuations. For instance, the most recent valuations were conducted in 2021, reflecting pre-pandemic conditions. As a result, many businesses are paying rates that do not accurately reflect current market conditions. Businesses should challenge these valuations to potentially reduce their financial burden.
The Impact of Service Charges and Insurance
In addition to business rates, tenants face increasing service charges and insurance premiums. These costs, often rising in line with inflation, add to the financial strain on high street businesses. While landlords can reduce rents, they have little control over these additional expenses, further complicating the financial landscape for tenants.
Innovative Solutions for High Street Revitalization
Revitalising the high street requires innovative thinking and collaboration between landlords, tenants, and local councils. Here are a few ideas:
- Attractive Property Frontages: Ensuring that vacant properties have attractive frontages, with clean windows and appealing vinyls, can enhance the high street’s appearance and attract new tenants. This small investment can make a significant difference in maintaining a positive image.
- Flexible Space Usage: Reimagining how retail spaces are used can attract a diverse range of businesses. For example, creating family-friendly spaces where parents can work while their children play can draw more visitors to the high street.
- Encouraging Mixed-Use Developments: Combining commercial and residential spaces can increase foot traffic and support local businesses. This approach can also address housing shortages by converting unused commercial properties into affordable housing.
- Supporting Small Businesses: Providing financial incentives and support for small businesses can help them establish a presence on the high street. This could include grants, low-interest loans, or rent subsidies.
The Future of High Streets
High streets must evolve to meet the changing needs of consumers and businesses. By addressing the financial challenges and rethinking how spaces are used, we can create vibrant, thriving high streets that serve as the heart of our communities. Collaborative efforts between landlords, local councils, and businesses are essential to achieving this goal.
In conclusion, solving the high street problem requires a multifaceted approach that includes better property management, fair business rates, innovative space usage, and support for small businesses. By working together, we can ensure that our high streets remain vibrant and welcoming places for everyone.
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