The Government is likely to withdraw the threat of outlawing upward-only rent clauses following the publication of a 479-page report by the UK’s most influential property academic.
Neil Crosby’s report, published yesterday, says landlords have become more flexible by offering shorter leases and allowing more tenants the right to break them.
But it says most leases with rent reviews still contain upward-only clauses and many landlords have refused to allow tenants to sub-let space for less than the rate they are paying for it.
He concludes the voluntary code has not had much effect and only 22% of tenants know about it.
Nevertheless, tenants have become more aware of their right to negotiate terms and conditions.
The British Property Federation said the report showed how the property market had changed significantly over the past decade.
The British Retail Consortium said the report showed tenants did not negotiate with landlords on rent reviews because they knew rents were simply not negotiable.
British Land chairman John Ritblat said any situation where the government did not legislate was always to be preferred.
References: Financial Times 25/02/05 page 3, The Times 25/02/05 page 54
