Data shows £3.7 billion of space goes unused

Research by Real Business Rescue showing the most cost-effective places to rent retail space has revealed that UK vacancies remain above pre-Covid levels.

According to the data, the UK currently has over 150 million square feet of unused retail space. At an average annual price of £24.48 per square foot, this leaves £3.7b of spare space.

Perhaps unsurprisingly to many, London remains the most expensive place to rent at £49.64 (all prices are per sq ft. per year), with Kensington and Chelsea the most expensive borough at £86.15, higher than the national average by 252%.

Interestingly, Blackpool is the cheapest place in the UK to rent retail space at £12.45, despite being second in its footfall recovery score. That is, how fast footfall in the area has recovered to pre-pandemic levels. Blackpool saw a record boom in visitors following the pandemic in 2021.

Plymouth had the highest footfall recovery score, with an average rent price of £20.08 per sq ft. per year.

London had the worst footfall recovery score, alongside being the most expensive place to rent. The report suggests that businesses in London may not be getting complete value for the premium prices they pay on rent.

Shaun Barton, National Online Business Operations Director at Real Business Rescue, said: “Rental prices are just one of the many rising costs affecting businesses across the nation as they battle through one of the toughest periods they’ve ever faced due to the ‘cost of doing business crisis’ and rising inflation. Not only do these prices lead to vacant retail spaces, which can have damaging effects on high streets up and down the country, but it’s another pressure point for small and medium-sized enterprises everywhere.”

“With the fallout from the pandemic, and now a ‘cost of doing business crisis’, it is clear that a significant number of retailers across the country are facing a battle to remain financially solvent and viable.”

You can read the full report here.