Financial Statements
3 Gross and net rental income
| 2007 £m |
2006 £m |
|
|---|---|---|
| Rent receivable | 551 | 571 |
| Spreading of tenant incentives and guaranteed rent increases | 37 | 54 |
| Surrender premiums | 9 | 10 |
| Gross rental income | 597 | 635 |
| Service charge income | 52 | 55 |
| Gross rental and related income | 649 | 690 |
| Service charge expenses | (52) | (57) |
| Property operating expenses | (36) | (44) |
| Net rental and related income | 561 | 589 |
Net rental income for the year ended 31 March 2007 from properties which were subject to a security interest or held by non recourse companies was £409m (2006: £388m). Property operating expenses relating to investment properties that did not generate any rental income were £3m (2006: £1m).