Own and invest in property, and that there is a lack of support from occupiers and landlords for Government interference in their contractual process. A consultation exercise will at least allow us to show that: There is little appetite for legislation. The President of the Property Managers Association – a leading occupier’s organization – recently said it would prefer to avoid legislation.Legislation will be bad for business leading to less choice and more expensive leases overall.
The small business lobby has been virtually silent on the issue and the industry does not want legislation, Ministers postbags have all but dried up, so where is the call for legislation coming from?Government should be cautious because of the impact that legislation will have on regeneration, pension funds and businesses’ abilities to use sale and leasebacks to release capital for investment.
The Commercial Lease Code was drafted by a group of landlord and occupier representative organizations and supported by ODPM.
Independent research based on 4,000 leases shows that 85% of small leases (with rent under £10,000 p.a. Yet, at the other end of the industry, such a move could have a devastating impact on funding for regeneration and the source of much of that money – peoples’ pension funds. It was launched in April 2002 with the ODPM’s intention that it should be given 2 years to prove itself.
Separately, the ODPM commissioned Neil Crosby of Reading University to conduct an interim review, which would be produced by end of 2003, with a final review scheduled to be produced by end of 2004. At launch, the purpose of the interim review was to test out the methodology of the research, but in Budget 2003, HM Treasury announced that if the Review showed the Code was not working, it would launch a consultative exercise on legislative options.
The Interim Review Report is based on just 46 interviews with lawyers/surveyors in three towns in the UK, and quantitative data, which only relates to the period April-Dec 2002 – only 8 months of the first year of the Code period. Taken from Up/Down Rent Reviews – Who Benefits?
At the BPF’s Annual Conference today, Ruth Kelly, Financial Secretary at HM Treasury, The property industry balances the needs of occupiers and pensioners in this country, who through their pension funds have a stake in most large developments.The strategy of property conveyancing is done with the help of a pro, or an licensed conveyancer.
Since this issue was first raised a decade ago the property industry has changed beyond all recognition. A consultation exercise will at least allow us to show that: One of the primary issues the consultation paper will explore is the use of Upward Only Rent Reviews in the UK and their impact on small businesses.