Partner Article

We must rise to the challenge of the High Street

In many sectors that were hit by recession there is now a feeling that we have turned a corner and the recovery has well and truly begun. One area where this isn’t the case is the High Street, where the situation is complicated.

An Information Paper published earlier this year by the Royal Institution of Chartered Surveyors (RICS) entitled ‘High Streets: Adapting to Change’ looks at the drivers of change and distinguishes between economic slow down and structural change.

Generally, the decline in real growth of national retail spending is blamed on the recession and internet shopping. This is partly cyclical and should correct itself as the economy grows. However, it is likely there will be a long-term permanent decline in retail spending.

The boom in spending pre-recession was fuelled by increasing household debt. This will take time to adjust, through more than one economic cycle. The growth in our ageing population is also likely to change spending priorities, towards care, travel and the growing cost of utilities.

But there are more fundamental long-term factors causing decline than these general assumptions. We have seen structural changes before, mainly caused by advances in technology. Home refrigeration in the 1950s changed daily shopping and the impact of the car ownership growth and accessibility to out-of-town shopping is well understood.

Councils and traders have struggled to adapt to this change. Planning policy to restrict the growth of out-of-town shopping since the 1990s, has largely been unsuccessful. While some councils are grasping the nettle the issues, especially in the larger centres, are challenging.

The action should focus resources that are realistic and achievable. In general, they are likely to include one or more of the following; an improvement in competitive performance, a reduction in the cost base, diversification away from retail uses, and growing the local economy and population. A key improvement will be improving accessibility to town centres.

Using the planning legislation innovatively can help to cut down the risk, cost and delay of creating change. Changes of use can be permitted without the need for planning permission. Local Plans need to address the structural changes that the centres are going through, and Neighbourhood Plans, built up from local consultation, can be of help.

While investment in a centre is discouraged by decline, if local authorities have clear strategies this will help with investors and occupiers. A Business Improvement District or Town Team can give a collective voice for occupiers and will be increasingly important as an attraction for new investors.

The impact of rents, rates and realistic lease terms need to be considered in the attraction of occupiers in the town centre. Both the landlord and their surveyor have a part to play.

There is no single answer but the structural changes that have caused our retail centres to decline must be addressed. Whilst leadership from the local authority is essential, the owner, occupier, investor, and their advisors must be positive and play a collaborative role.

In terms of how our high streets should look and feel, the Department for Communities and Local Government puts it nicely: ‘The government recognises that our high streets have to offer something new and different that neither shopping centres nor the internet can match. They need to offer an experience that goes beyond retail – the high street should be a destination for socialising, culture, health, well-being, creativity and learning, with schools, doctors’ surgeries and offices along with shops. Our high streets should be social places that make creative use of public spaces and with a vibrant evening economy.’

This was posted in Bdaily's Members' News section by JK Property Consultants .