Vacancy rates soar
Town centre vacancy rates are continuing to rise, according to the Local Data Company. Wolverhampton has the third-highest vacancy rate of large centres in the country, which stands at 23.7 per cent. Birmingham is 13th, with 17.9 per cent of large high-street units remaining empty.
The vacancy rate in Wolverhampton soared by 4.4 per cent compared with 2009, however Birmingham's high street saw a slight fall of 0.1 per cent in the number of empty units.
According to the data research company, the picture isn’t set to improve over the coming months. The company said: “This data shows vacancy increasing in a majority of centres and, more worryingly, particularly in those centres where the budget and job cuts proposed for the public sector will begin to bite.
“Combined with the increase in VAT in January, this will likely be a double blow for the big retail centres in the north and Midlands particularly.”
However, the company said that there was good news for large retailers such as West Midlands-based Poundland, which is continuing to “make opportunities out of a weak market”.
The research found that there was “a clear divide” between the struggling centres in the north of the UK, and the more prosperous outlets in the south.
Liz Peace, chief executive of the British Property Federation, said: “It is encouraging to see high streets recovering in the south, but that glimmer of positive news does not hide the fact that retail markets elsewhere are struggling, and that consumer confidence is still fragile.
"This data highlights the need for government initiatives to help regional centres, such as proposals for Local Enterprise Partnerships, the £1bn Regional Growth Fund, and its National Insurance holiday for companies hiring new staff, to be implemented quickly and effectively.”
