Edward Dodson, Director at Cheffins says:
“Most sensible landlords are already trying to rent out empty retail units to charities, community groups and smaller businesses in order to mitigate their rates liability, however this new plan under the Levelling Up and Regeneration Bill hopefully ought to help breathe new life into struggling high streets and city centres. This backs up the widening of the planning use classes which the Government introduced in September 2020 and which makes it easier to switch between uses without need planning permission.
Since the pandemic, vacancy rates have without doubt increased, accelerating a trend already in place following the growth in online shopping. However, this has been exacerbated with some of the UK’s largest retailers going under, including the likes of Debenhams, which has left large-scale empty units across the country. Whilst there is an average of one in seven shops now laying empty across the UK, Cambridge has less than one in 12 shops now vacant, which is a testament to the city and it’s attraction to tourists, more particularly domestic tourists over the last 9 months. However, the remaining vacant units certainly could be put to better use, supporting smaller businesses or charities, whilst also helping to encourage people to shop locally.
Nevertheless, councils will need to join the party by reducing or deferring the sky high rates bills currently being charged the UK over. Whilst last year the government took the pragmatic approach in reducing business rates for the hospitality and leisure industries, those which have been hit hardest by Covid, there now needs to be a more overarching strategy for the rates system. Whilst no further taxation has been placed on the e-commerce sector, bricks and mortar retailers continue to shoulder the lion’s share of the rates bill for the retail industry, and this ought to be addressed should we be looking to really bring the high street back to life.
We have found that the retail market in Cambridge city centre continues to be strong, with a number of new occupiers taking up vacant opportunities in the city immediately after the main lockdown periods, with lettings to Anthropologie, Urban Outfitters, Miniso and Lululemon amongst others. This trend has slowed with a significant number of units in the primary shopping areas remaining vacant, but we are seeing some under offer signs appearing which is promising. There is also increased activity in the secondary and tourist areas of the city, with smaller businesses such as Dogfish and Roundhouse Design taking new units in Sussex Street.
In time, Cambridge is set to look different, with wider ranges of uses for every given unit. However, hopefully the Levelling Up and Regeneration Bill ought to help ensure that boarded up shops become less commonplace, creating a greater sense of community and cohesion within UK city centres.”
For more information on the Cambridge retail market, contact Edward Dodson on edward.dodson@cheffins.co.uk