• 11% fall in just two years
• E-commerce and Brexit sees retailers cautious to open new property

 The pipeline for new shops and shopping centres in England is drying up, with bricks and mortar retailers more hesitant than ever to take on new retail space says Lendy, Europe’s leading peer to peer secured property lending platform, and title sponsor of Lendy Cowes Week.

Planning applications for new shopping premises fell to an eight-year low of 6,525 last year* – almost half the number of 2008/09, and down 11% on the 7,364 in 2014/15 (see graph below).

Lendy explains that Greater Manchester has seen the most dramatic falls in retail planning applications last year. Oldham stood in last place of the 339 local authorities, with just 4 retail planning applications in 2016/17, down 87% from 30 the previous year. Stockport, is second to last place, saw a 71% fall in applications to 6 last year, down from 21 in 2015/16.

One reason for the continued fall in new shops and shopping centres being built is the continued migration to e-commerce. Brexit could also be forcing retailers to adopt a cautious approach as consumer confidence remains low.

Lendy adds that those looking to invest in commercial property – especially in the retail sector – must do so carefully. Detailed research and effective due diligence is required if investors are to ensure they back developments with long term viability for retail.

Liam Brooke, Co-Founder of Lendy, comments: “The continued softness in the retail property market shows no sign of abating.”

“Retailers are shunning – and shutting – bricks and mortar shops, the government needs to find a way to encourage retailers to give the high streets a face lift.”

“Greater flexibility on business rates might also slow the rate of insolvencies in the retail sector.”

“While the big brands are continuing to shift their focus towards their online services, it is smaller retailers that need funding to get themselves out on to the high street.”

*year end March 31 2017