Industry calls for new property protections in pandemic
The RICS and the National Residential Landlords Association have issued new demands to support property owners in the pandemic.
The RICS is asking the government to make changing use classes easier for commercial assets, to make high streets more flexible and allow workplaces to respond.
It predicts secondary retail rents will fall by around 12% over the next 12 months, with prime retail rents down by 8%. However, industrials are proving more resilient.
The RICS and the National Residential Landlords Association have issued new demands to support property owners in the pandemic.
The RICS is asking the government to make changing use classes easier for commercial assets, to make high streets more flexible and allow workplaces to respond.
It predicts secondary retail rents will fall by around 12% over the next 12 months, with prime retail rents down by 8%. However, industrials are proving more resilient.
RICS chief economist Simon Rubinsohn said an “inevitable rise in agile working” will undoubtedly lead to a reassessment of office space demand.
He said: “Against this backdrop, it is critical that the government engages with the industry to build a collective approach to addressing the challenges of and help to facilitate the transformation of the commercial property estate to something that better reflects the needs of a 21st century economy and also the continuing shortfall of good quality housing across all tenures.”
RICS associate director for planning and development Tony Mulhall added: “In the light of current events, there is even more of a need to rethink commercial property use-class regulation, which was produced in response to more static conditions, and make the case for greater flexibility.”
Mulhall said this change must be supported by proper design and construction to ensure fit-for-purpose assets.
The NRLA has also called for the government to ensure that Universal Credit benefits cover the full cost of rents to protect residential landlords.
Responding to news that the department for work and pensions had suspended deductions until 10 May, it called for the government to make payments directly to landlords.
Ben Beadle, chief executive at the NRLA, said: “At such a difficult time the priority should be to do everything possible to prevent tenants getting into rent arrears in the first place by ensuring tenants are able to continue paying their rent in full.
“This means that the government should ensure benefits cover the full cost of rents, end the five-week wait for the first payment of Universal Credit and pay the housing element of the credit directly to landlords.”
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