Panic at the Disco: How the Closure of UK Nightclubs Affects Dilapidations Claims

A recent article has highlighted the decline of our Nightclub culture across the UK. With nearly 300 nightclubs closed, experts look to increased expenses and an increasing teetotal culture for answers.

According to statistics, as many as 10 venues disappear a month, prompting more landlords and tenants to seek advice on dilapidations. As a consultant in this area, I have seen an increased demand for advice on dilapidations and the application of Section 18 (Diminution in Value).

One particular client springs to mind. A former tenant was in the process of terminating a 15-year lease that was signed just before the Lehman Brothers collapse and banking crisis in 2008/2009.

Not seeing the financial crisis coming, the client invested significantly into fitting the venue out. However, the venue never opened and sat empty for 15 years, never to be a nightclub again. As recent times remain financially tricky for many businesses, I’m sure other buildings are destined for the same sad circumstances.

To prevent such a waste of investment and unused overheads, landlords need to enlist help in repurposing vacant properties for other uses. This, in turn, affects the likely value of the buildings and impacts dilapidations claims.

If you are a landlord or tenant and need advice regarding dilapidations claims or the application of Section 18, please email neil@raeburnconsulting.com.