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Shops under threat as new owners ramp up rents after buying properties from council

Local News by Nub News Reporter 1 hour ago  
The parade of shops on Montreal Road
The parade of shops on Montreal Road
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SENIOR members of the Labour cabinet that ran Thurrock Council before May's elections have expressed disappointment with news that commercial tenants in properties that the council sold are now being pressed for significant rent rises by the new owners.

During their tenure in office, the Labour cabinet sanctioned a number of sell-offs to try and slash the authority's debt.

In September last year the council agreed to sell off 14 shopping parades in the borough on 200-year leases.

Among properties sold are parades of shops across the borough, including those in the Commonwealth House block on Montreal in Tilbury.

Aside from Commonweath House the properties were on Broxburn Parade, Calcutta Road, Canterbury Parade, Daiglen Drive, Defoe Parade, Derry Avenue, Derwent Parade, Gardner Avenue, Garrison Parade, Garron Lane, Jesmond Road, Riverview and Romford Road.

When the sale was sanctioned, cabinet member Val Morris-Cook was insistent that tenants would be guaranteed a fair deal and that their existing tenancies would be respected.

However, shops on the parade have told Thurrock Nub News, that they have been told they are to be charged up to three times the existing rent as the new landlords exploit a loophole that says where rent reviews have not taken place for a number of years, a rise can be enforced.

One shop has four years left on its lease but says the price has now been tripled. Other have reported they have been told their tenancies will be significantly increased.

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One said: "We have not had a rent rise for some time because the council wanted to help us remain in the local marketplace in difficult times. We expected that there would be some rise when the new owners took over, but not to this extent. I am not sure if my business will survive a rise of this magnitude. Some years we barely break even as it is."

Mrs Morris-Cook told Nub News that she and other members of the cabinet believed that tenants rights would be respected and she said she was disappointed that it appears the council have allowed an opportunity for rises to be implemented.

And she said she had hoped that businesses whose tenancy agreement ran out would not be faced with extortionate rises.

At the time of the sale Mrs Morris-Cook, then cabinet member councillor responsible for finances and resources, said: "These parades have been on the list for disposal for some time, and they are an attractive proposition as there is only a 4 per cent vacancy rate of the retail units.

"If approved it will allow Thurrock Council to release these assets and bring in money to reduce the council's debt, without any negative impact on shop owners."

Another cabinet member, who asked not to be named, told Nub News: "This is not what we believed would happen. Had we known this was going to happen I doubt if we would have allowed the deal. Our understanding was that where tenancies came up for renewal the new owners would not significantly change terms and rents be adversely increased.

"It appears we have been misinformed or misinterpreted by officer advice."

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