| UK OCCUPIER SATISFACTION INDEX 2009 |
PROPERTY INDUSTRY ALLIANCE AND CORENET GLOBAL UK |
| Home : Qualitative findings : Summary by question | |
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Occupiers believe that property costs in the UK are high in comparison to costs abroad and therefore offer poor value for money; occupiers do not think that the UK property industry is reacting fast enough to changes in the economic climate |
| Property costs in the UK do not represent good value for money, especially when compared with costs abroad |
'The price of land and property in the UK is pretty expensive compared to the rest of the world. That, together with longer lease commitments than other places makes the UK a bigger and more expensive commitment.' 'The UK is more expensive than elsewhere in the world for rent and service charge.' 'Rents are extremely high, without flexible terms. Most other countries have leases that require landlords to do a fair amount of the work. In the UK, the tenant takes the liability of the cost.' |
| Property costs in London are perceived to be particularly high |
'We get poor value for money especially in London which is the most expensive place in the world for property.' 'It does depend on the location. In London they are asking for trouble with the level of rents being asked, it is just greed.' |
| Upward only rent reviews do not reflect the economic reality | 'Everyone has properties that are over-rented. Rent reviews don't allow reductions so you are stuck with a lease for five or ten years with no downward movement.' |
| Some occupiers say that service charge costs are particularly high |
'Service charges create the most difficulty. Rent is objective and fully negotiated so we know what our exposure is. The service charge is an opportunity for landlords to take advantage of us, it's a hidden fee.' 'Service charges are a big cost. I'd like to see more attention paid to bringing them down and getting better value for money by, for instance, allowing occupiers some say in the selecting of competitive tenders.' |
| Some occupiers report that value for money for rent is improving as a result of the recession |
'A lot of larger landlords are being more realistic at the moment, more flexible.' 'The market is beginning to catch up with the economic reality. Rents generally are fairer because they are market driven and negotiable.' |
| But some feel that property suppliers are not responding quickly enough to economic reality |
'Our rent has been steadily climbing whilst the High Street is steadily emptying!' 'I just think landlords are not responsive enough. They are not responding to the current economic situation and they are not providing good value for money. I don't differentiate between rent and service charges.' 'They haven't taken any notice of the current economic climate. The landlord wants a 37% increase in rent which is ridiculous.' |