The landlord walloped by High St woe

BRITISH Land has warned that the recent spate of retail failures have knocked its rental income.

The retail sector has been hit by a number of administrations recently, with both Maplin and Toys R Us disappearing from the High Street.

And familiar names such as House of Fraser, Mothercare and Carpetright have been shutting stores though Company Voluntary Agreements (CVAs), an insolvency procedure which must be approved by landlords.

British Land, which owns and manages commercial properties, said retail administrations and restructurings through CVAs had cost it 1.6pc of its total group rent since April 1.

Ahead of its AGM, the firm said the retail market ‘remains challenging’. Retailers have been hammered by Brexit-fuelled inflation, soaring business rates and falling consumer confidence.

Restaurant groups have faced similar problems, with Byron, Jamie’s Italian and Prezzo all undertaking CVAs.

CVAs have proved controversial with landlords, who have complained they are being unfairly targeted by retailers looking to get out of their rent obligations.