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Out-of-town shopping centres such as Bluewater and Meadowhall may be forced to start charging their customers to park at their schemes on the back of recommendations by the UK Commission for Integrated Transport.
The independent body, which advises the government on integrated transport policy, has called for out-of-town centres to imposes mandatory parking charges, with fees starting from £1 per hour. The recommendation is suggesting there is a need to look at ways to encourage shoppers to use their cars less frequently in a bid to ease congestion and the impact on the environment.
The study carried out by the CfIT has found that despite some retailers' current perceptions, it is bus users, cyclists and walkers who support their town centres the most, with car users tending to travel to the out-of-town shopping centres and supermarkets.
The study suggests that better public transport and facilities for walkers and cyclists can help attract more shoppers back to the local high streets and that more needs to be done to manage transport demand at the big out-of-town centres.
The CfIT's recommendations include a 'levelling of the playing field' for parking charges between town centres and out-of-town shopping areas, with out-of-town centres introducing charges.
Commission member Helen Holland endorses the study, which also includes plans to provide quality public transport, particularly Park & Ride, bus stops placed as close to the shops as the car parks, and safe pedestrian-friendly environments; to introduce congestion-busting measures such as bus priority and congestion charges; and to shift the balance of the planning system in favour of existing town and city centres.
Holland says: "Our study shows 85 per cent of shoppers going to out-of-town retail parks arrive in their cars. The commission recognises that for some shopping trips, such as the weekly grocery shop, the car is currently the most convenient option, but this level of car use is simply not sustainable in the long term."
The CfIT points out that retailers did raise concerns about the lack of parking resulting in a loss of customers, but spokesman Luke Blair says they also received acknowledgement from retailers of the benefits of Park & Ride and the benefits that sustainable transport choices can bring, such as reduced traffic and a more pleasant shopping environment.
He adds: "We do not want to prevent shoppers from using their cars for any journey - we want them to use cars less for those journeys that could be done on foot or by bus. Current levels of car use particularly in this area are simply unsustainable."
Amid fears that charging could reduce out-of-town footfall, Donaldsons has calculated that car parking charges could in fact reap big rewards for retail investors.
Donaldsons points out that most prime in-town shopping centres levy car parking charges, with each parking space achieving, on average, a net income of £1,500 to £2,000 per year. If similar fees are charged out-of-town, an average centre with 3,000 parking spaces could generate an impressive £4.5m to £6m of additional income per year. If fees are also applied to retail parks, the combined impact of this additional income stream could add over £2bn to the value of the retail property market, even if the associated drag on retail park rents are considered.
Under the new RICS Service Charge Code of Practice, by removing the car park from the service charge, centre owners could capitalise on the entire income stream.
Bryan Duncan, head of retail at Donaldsons, adds: "The Commission for Integrated Transport's call for car parking tax has so far been met by hostility from the retail industry. However, we believe that the sector will not suffer from imposed charges.
"On the contrary, such charges can represent a significant income stream, and provide reliable returns. Landlords that re-invest this income will be able to deliver enhanced services and benefits to both the consumers and retailers.
"This may in the end defeat the government's intentions, as out-of-town centres retain their allure."
However, the news has worried regional out-of-town shopping centres which are concerned any move to charge for parking would prove unpopular with their customers.
Georgina Thompson, marketing manager at Meadowhall, says: "Naturally we would not be in favour of introducing parking charges at Meadowhall. The move would clearly be very unpopular with our customers, as plentiful free parking has, for 16 years since the centre opened, been a key part of our unique brand offer.
"This is not to say, however, that we do not encourage shoppers to visit the centre via public transport. We simply believe in offering our customers choice and for certain important shopper groups, such as the disabled and young families, travelling by car will always be the safest and most practical option."
Margaret Harwood of Capital Shopping Centres, however, doesn't believe it will make a lot of difference to the current position of out-of-town centres. She says: "It will be the same for everybody and the shoppers pay to park in the town centres anyway at the moment so I don't think it will make a difference."
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