MNI BRIEF: Pandemic Fuels Rise in UK Retail Space Vacancies

UK shop vacancies rose 13.7% in Q4, up from 13.2% seen in the third quarter, the latest BRC-LDC Vacancy Monitor published Friday shows, underlining the impact of the lockdowns and wider social restriction on the retail sector. Overall retail store vacancies were 1.6ppt higher than a year ago. The increase in vacancies was widespread with hard-hit shopping centres recording the largest uptick to 17.1%, whereas in retail parks -- more accessible and easier to put distancing in place -- they only ticked up marginally to 10.0%, making it the location with the lowest rate of empty shops.

Many retailers are calling from an extension of business rates relief in to the next fiscal year, which would be a further hit to Treasury and local government revenues. "If Government wants to avoid unnecessary shop closures and the loss of tens of thousands of jobs, it must urgently extend the business rates relief beyond April," said Helen Dickinson OBE, Chief Executive of the British Retail Consortium.