Small businesses opt for short lease deals

Short leases are gaining popularity among small business software users and other companies, the latest figures show.

Analysis of 91,000 tenancies by the British Property Federation (BPF) shows the average length of a lease has decreased by more than ten months in just five years.

Just over three per cent of the companies surveyed has a lease in place over ten years.

Liz Peace, chief executive of the BPF, commented: "Shorter leases have undoubtedly meant fewer businesses found themselves in trouble during the recession and therefore were able to survive it."

She emphasised that short leases are a good thing for smaller businesses, particularly as the business environment is changing at such a fast pace.

Earlier this year, the BPF offered its response to the Budget, saying that a rise in VAT would have a negative impact on commercial landlords, who will see "further downward pressure on rents".

Small Business Management Software from Atlantic Global OnDemand.

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