Dixons Group chief executive John Clare has called on landlords to meet their obligations under the code of practice for commercial leases or face an uncertain future of declining high streets and unwanted government regulation.
Clare, speaking at the BCSC conference in Manchester today, said: “I am here to deliver one very simple, straightforward, uncomplicated message to all developers and landlords implement the code of practice for commercial leases. Put it into practice, and quickly, before regulators and legislators step in.
“Here is a code of practice, agreed in 2002, yet two years on almost no landlord is abiding by it. Well over 90% of leases signed in the last two years have ignored it. A state of affairs that sees landlords and retail tenants locking horns every day cannot continue.”
Government is currently considering whether to force landlords and developers to adopt fairer practices in their negotiations with retailers through regulations.
Clare added: “I am a firm believer in free markets. But the current lease system is not good enough. It is too one-sided in favour of the landlords.”
He told delegates: “Before we all find ourselves tied up with yet more red tape, I urge you to abandon your inflexible approach and, before it is too late, adopt the code. If you do not the retail lobby will shift completely behind regulation as being the only way to change the current system.
Clare said the real risk in the market was that more and more power would be handed to the legislators.
References: EGi News 02/11/04
