Retail rents to drop a fifth by year end

Rent for retail premises across the UK are set to plummet by about a fifth before the end of the year, according to property consultant Colliers.

While retailers continue to expand, they are demanding cheaper rents and concessions, including up to six years rent free. The report predicts rental values will continue to fall over the next couple of years, down 9% in 2010 and 1.3% in 2011.

The slump has already halved the price of assets in the sector, according to the newspaper.