One of the major concerns of traders both in the Town Centre and at Albany Parade is rents controls.  LB Hounslow is the landlord for about one third of the retail units on High Street Brentford.

As a result in 2007 Cllrs Hardy, Harmer and Dakers initiated an investigation into rents in the area that has continued over the past few years looking at the impact on the sustainability of businesses.

INITIAL RESEARCH

Advice has been sought from the Association of Town Centre Managers (ATCM) and this issue was initially discussed at length at the Isleworth & Brentford Local Area Committee meeting on 23 November 2006 (see officer report below).  Whilst recognising that it remains the policy of the Council to get as much income as possible from the high street retail units (local political and national legislative pressure), this must be done in a fair and sustainable way. 

Areas that are being explored are:

• Better provision of comparative rental information to traders on average 'Zone A' rental in Brentford and wider west London context.  Colliers CRE have produced benchmark data that provides an indication of sustainable rent to turnover ratios.
• Information sheet for tenants on rights/responsibilities, including arbitration (on rents) and business rates relief/appeals.  This will ensure traders are more empowered and help facilitate fair trade/ negotiations. For examples see:

Warrington Borough Council - A guide for business tenants

Business Link - Guide to Business Rates

HMSO - Explanatory note on non-domestic rates appeals regulations 2005

Valuation Tribunal Service - Guide to appealing against your council tax or non-domestic rates

• Start-up support – Develop links between Corporate Property (LBH) and Business Link/ LBH Economic development unit.  This would enable Corporate Property to refer on small businesses that need support prior and during start-up, thus reducing the chance of business failure.  We may also explore whether an incubator approach could be applied to retail units.
• Retail mix - Is the mix of shops/ use classes appropriate and what is the impact of rent and economic viability? Corporate Property providing map of usage classes as input to community planning process.  This can inform debate and lead into conversations with Planning Department (LBH) who are responsible this aspect of High Street's development/ evolution.
• Vacant units – Discussions initiated with Vokins on the marketing of High Street.  Councillors need to raise concerns with British Waterways (re Brentford Lock units) and Geronimo (boarded up units on South side of High Street) ….could they partner with LBH and High Street Steering Group on joint marketing approach for Brentford High Street (short and long term)?

DEVELOPING NEW POLICY PROPOSALS

In response to a letter from Brentford Community Council and Brentford Chamber of Commerce in Autumn 2008 a lengthy discussion took place between councillors and Mike Jordon, Director of Environmental Service, LB Hounslow regading rents on 22 January 2009 at the Isleworth and Brentford Area Committee:

"Lee Dawson, Director of Project Co-ordination and Corporate Property, provided notes stating that 29 properties were currently managed by the Authority/ Hounslow Homes in Brentford Town Centre (and another 19 at Albany Parade). The timescale for rent reviews was every 5 years and based on the value of the property at the time of the review, which was most recently carried out last year (pre-recession in some cases).  The Authority’s policy was to secure market rates for properties. There was, however, an opportunity to negotiate and look at arranging monthly rents, rather than paying up front. Independent arbitration was also possible. Officers were willing to discuss arrears recovery and ways to avoid empty properties.

"On the matter of rent setting Mike Jordan confirmed that officers did acknowledge the need to reflect a range of uses. However, where the Authority instructed valuers to obtain the market value without restrictions on the use of the premises, they would do so. The Authority had the power to steer officers on the uses in specific areas and looked to members and the Executive to support this.

"Councillor Hardy suggested that rent reviews were an important recurring issue for this area, noting the high turnover of tenants in Brentford High Street and the importance of a holistic property strategy (place shaping, community hubs, etc). 

"Councillor Cadbury suggested that rents had not been increased in several commercial sectors across London.

"Councillor Dakers suggested that the Authority was able to negotiate rents with existing tenants, pointing to the fact that the model used for rent reviews did not take into account the differentials us use on a typical small town centre high street. He asked that rather than viewing rent negotiations as potentially losing the Authority income, that such measures could be viewed as protecting against the current high turnover of tenants and securing long-term income for the Authority. He asked that this concern be passed back to the relevant department.... He supported the move by Ballymore to put vacant units back on the market but noted the need to ensure fair rents and to avoid unnecessary competition with existing struggling businesses in the area – pointing instead for a strategic decision to ensure the right mix of tenants."

Correcting the minutes at local area committee on 19 February 2009 Cllr Dakers reminded members that Mr Jordan had advised that members set the policy framework and that for rent differentials to be informed by business type (then seeking 'Best Value') would demand that members changed the framework.

On 23 July 2009 a detailed report came to local area committee on 'The theory and practice of turnover rents'. See:

http://democraticservices.hounslow.gov.uk/Published/C00000215/M00004774/AI00044530/$ReportforIBACTurnoverRentsJuly09.docA.ps.pdf 

Councillors, accepting the impracticality of this approach on a high street environment made up of independent retailers, responded with a motion setting out detailed policy proposals for improving the transparency around rent setting and managing the retail mix on Brentford High Street.  The motion Ensuring fair rents, economic sustainability and renewal on Brentford High Street was supported on a cross-party basis by the whole committee.

It is now with the Leader of the Council to respond to the committee -- hopefully make the proposals formal Council policy.

ADVICE FOR TRADERS

If you are considering entering the local retail market you may want to consider joining the Association of Convenience Stores (ACS).  On 5 December 2007 they published the ACS response to the Competition Commission's Initial Findings. 

FEEDBACK TO COUNCILLORS

If you have any information you would like to contribute to the investigation please email Cllr Hardy: jon.hardy@hounslow.gov.uk  This will be treated in the strictist of confidence and will only be shared with the other two councillors investigating trends in rents.