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After 20 years shop faces closure as the rent doubles
Independent shopkeeper blames supermarkets for 'killing off the local store'
From left: Robin Fairlie, Jan Morgan of the Highgate Society
and Raj Kara-Rajani |
ONE of Highgate’s longest-running independent shops
could be forced to close after its rent was more than doubled
by landlords.
Raj Kara-Rajani, owner of Village Food and Wine in Highgate
High Street, said landlords Limaglen Ltd had told him they would
be raising his rent from £45,000 to £95,000 this
year.
Speaking at a Highgate Society debate on the future of the Village
on Wednesday, he said: “For the last 20 years I have been
involved in various rent reviews. Just before Christmas I was
plunged into another rent crisis when I got a rent demand for
£95,000.”
And he also blamed the increase in chain store supermarkets
challenging corner shops for business. A Tesco Metro store opened
in Highgate High Street last year.
He continued: “Apart from fighting people like Tesco, I
have to fight the Institute of Chartered Surveyors who conduct
the rent reviews. It is not just me who is affected. Over the
last two-and-a half years, since Tesco arrived, many of my specialist
suppliers have gone out of business.
“I think this is the end of the shop. There is no way out.
People ultimately talk with their feet and we don’t get
the support to sustain the rent we have to pay.”
According to Mr Kara- Rajani, many shop owners were too frightened
to speak out about their rents because they feared being penalised
by their landlords.
He added that the stress of finding money to pay the rent had
left him exhausted.
He said: “I have spent more than half my life in this business
and I have mortgaged every bit of my assets in it. It has caused
a lot of stress for me and my family. We don’t know what
the future holds.”
And Mr Kara-Rajani, whose corner shop has served the Village
for two decades, painted a grim picture of the future for small
business owners.
He said: “There are no solutions because the rents are
usually worked out by the landlords. There is nothing the government
can do. I think the days the small retailer are numbered. The
shop will probably become another estate agent or coffee shop.”
Andrew Cooper, a chartered surveyor, acting for the landlord
Limaglen Ltd said: “A new rent has been quoted although
there have been no negotiations to date. This is up to the tenant
and landlord to discuss.”
He added: “The rent has gone up in line with market prices
in Highgate. This is based on other lettings, rent reviews and
lease renewals in the area. We also look at rates per square
foot.”
Robin Fairlie, chairman of the Highgate Society, agreed with
Mr Kara-Rajani that high rents were the biggest problem facing
Highgate’s independent shops. The Society’s recent
survey into the future of life in Highgate revealed overwhelming
concern about the mix of shops on the High Street – with
complaints that it was dominated by estate agents and coffee
shops.
He said: “The first problem independent retailers face
is in dealing with the supermarkets. That could be addressed
by those shops willing to think ahead and produce goods and
services not matched by the supermarkets.
“But the problem of rents is much harder to address. If
we had a responsible planning authority capable of determining
what shops should be kept that would be helpful. The key issue
is that of rents.” |
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