Traders concerned over potential rent rises - commercial mortgages

12 June 2007

Traders in the north east of England are concerned that a multi-million pound property purchase could have an adverse affect on the levels of rent that they are required to pay, it has been revealed.

Retailers holding commercial mortgages in the shopping precinct in Sunderland believe that the property''s £6 million sale, while indicative of a booming property market, could force prices up.

Firms such as William Hill, Alliance and Leicester and Thomas Cook are among those involved, according to the Sunderland Echo.

"It definitely shows what''s happening in Sunderland. I would have said 12 months ago that it was a high price, but the way things are going it''s becoming less surprising," commented North East Chamber of Commerce member Mick Thurlbeck, speaking to the paper.

"With it being such a huge amount, whoever buys it is going to want some return on that, which may mean an increase in the rents at the next rent review," he added.