I am also absolutely certain that we need rent holidays, but that these will represent an absolute loss to the landlords because they have the strongest lines of credit available to anyone in the UK economy.
The owner of some of the UK’s biggest shopping centres, Intu, has said there are doubts that it can survive unless it raises extra funds.
Its comments came as the firm – which owns Manchester’s Trafford Centre and the Lakeside complex in Essex – reported a £2bn loss in 2019.
The weakness in the retail sector meant Intu wrote down the value of its shopping centre sites by nearly £2bn.
The real problem here being that Snippa doesn’t realise that we’ve already got a system to sort through these sorts of problems. It’s called “the market”. Peeps will look through who owes them money, for what, and make decisions based upon the details of the circumstances. A bank isn’t going to call in one third, or a half or whatever, of its mortgages because peeps are two months behind on their payments as a result of self-isolating. It might well still call in that one that’s 5 months overdue because the borrower’s a feckless bastard. The baker’s not going to bankrupt the sandwich shop for non-payment of last month’s bread bill.
Everyone knows that a certain selectivity over who to pursue for debt is going to have to happen. And they – the peeps, the individuals – will do better at it than any government scheme. Precisely and purely because of the level of knowledge of the detail.