A number of Britain’s largest retailers have called for landlords to collect rent only one month in advance instead of the traditional three.

Retailers including Argos, Debenhams, Next and Boots have argued that quarterly advances for rent are hitting businesses harder than ever while they are struggling through the current economic downturn. The British Retail Consortium (BRC) recently estimated that quarterly rental payments add £145m to retailers’ costs.

Quarterly advance rental payments have been a long-standing component of retail leases and landlords are expected to fight the proposed change. Retailers will put forward a case that although they have entered into a legally binding contract with their tenancies, in the current economic conditions they need flexibility from their landlords if they are to survive.

The BRC has argued that it is in the landlord’s best interest to see a thriving retail sector and that this will not happen if retailers continue to have to struggle with meeting rental costs. Retailers hope that changes to rent payments will help ease the pressures on smaller businesses, who are hardest hit as their profit margins are lowest, and in the worst cases help avoid them going into administration.

Michael Green, chief executive of British Council of Shopping Centres (BCSC), told PIN: “As is the case with any issue relating to lease conditions, the BCSC advises both landlords and tenants to work closely together to find the most appropriate arrangement for their particular circumstances.”