COMMENT With another round of national lockdowns sweeping across the continent – and much stricter restrictions already covering swathes of the UK – the announcement of a new national lockdown for England had a degree of inevitability to it.
It is, of course, for the government to take the decisions it feels appropriate in light of scientific advice, the evidence of what is happening to infection rates and hospital admissions, and the real risk of the NHS being swamped by both Covid cases and the normal stresses of winter.
What is positive is that some of the lessons of the previous national lockdown appear to have been learnt and the government has been quick to clarify and give welcome reassurances to the construction and property sectors about the continuation of many core activities.
However, for businesses across the retail, hospitality and leisure sectors, and the property owners who have been supporting them, returning to a national lockdown will come as a bitter blow. The timing could not be worse – in the run up to Christmas our high streets should be teeming, and many businesses typically depend on profits made at this time of the year to support them through much of the rest of the year.
More support needed
Those businesses whose futures depend on customers being able to leave their homes and spend time and money in our town and city centres will need government support over and above the extension of the employee furlough scheme to help with their other fixed business costs, including rent and service charges.
For many businesses and their landlords, the rent arrears built up earlier in the year remain an insurmountable challenge. Another period of severe restrictions and limited trading is likely to be crippling.
Government is rightly calling on all of us to seek our own solutions. Property owners and tenants are economic partners facing unprecedented challenges and should be working together, recognising the challenges each faces and the common interest in ensuring modern, vibrant town centres are at the heart of recovery from Covid. That requires both support for tenants today and the capacity to invest tomorrow.
It is frustrating that there are still a sizeable number of both landlords and tenants who have not had a conversation about rent and service charges since March and this cannot go on. Equally, ministers must now recognise that the hurdle those conversations need to jump is higher as a result of the new lockdown and continued uncertainty, and that the mountain of accrued debt arrears is growing at the rate of £1.5bn a quarter.
Not everyone can be protected or supported. But we have seen that the government has had to adapt its approach as the crisis has continued. Now is the time to look again at the proposals put forward by the BPF, BRC, UK Hospitality, UK Active and Revo for a Property Bounceback Grant. That would provide financial support to businesses which, through no fault of their own, are in genuine distress as a result of the impact of Covid-19 and where a combined effort by landlord and tenant cannot deliver a viable way forward.
Preparing for recovery
To end on a positive note, despite the challenges facing our sector, I am proud to see our members step up and play their role in supporting customers and communities.
From working hand-in-glove with the NHS to provide beds and build capacity, to continuing to support LandAid’s work to provide safe accommodation for homeless young people, our sector is playing a pivotal role in ensuring the UK’s resilience today and its future recovery tomorrow.
And individuals, teams and businesses are redefining real estate by their actions in local communities, going far beyond what their job requires to make a difference. To all of them – thank you.
Melanie Leech is chief executive of the British Property Federation
