The government’s consultation paper on upward-only rent reviews has been issued.
The document, published by the Office of the Deputy Prime Minister (ODPM), sets out six options:
● Do nothing
● Ban upward-only rent review (UORR) clauses
● Ban UORRs subject to a floor of the initial rent – this would involve a periodic review to open market rent, but would permit the landlord to require the tenant to pay the rent agreed at the outset of the lease if the review indicated a rent below that level
● Give tenants a right to break if the UORR produced a rent above open market levels
● Limit lease length
● Require landlords to give prospective tenants priced options
The paper, entitled Commercial property leases: options for deterring or outlawing the use of upward only rent review clauses, is available at http://www.odpm.gov.uk/urban/consult
The consultation period runs until 30 September.
References: EGi Legal News, 2/6/04
