Insights

Industry comment, updates and news from the Websters team.

Retail landlords fail to comply with RICS code

Wednesday, December 12th, 2012 in Commercial, Landlord, Managing Agent, News, Service Charge

In a report by Property Week, the Service Charge Operating Report (SCOR) for Retail 2012,based on the service charge cost data from 100 shopping centres with a total lettable area of circa 50m sq ft and yearly expenditure of just under £300m, shows that only 4% of shopping centre landlords show evidence of how service charge accounts are prepared, despite this being a key recommendation of the RICS code of practice. The report also revealed that only 54% of landlords are having annual reconciliation statements signed off by an accountant or surveyor. Finally, the report showed that shopping centre retail tenants are, on average, paying between £4.34 and £6.68 per square foot of space they rent but the reason for this wide cost gap remains unexplained.

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