Government fails to take action on rent reviews

Many tenants in commercial properties will be stuck with upward-only rent reviews, after the Government failed to bring in stricter regulations.

Despite concerns over the impact of upward-only rent reviews on small businesses, the Government last month said it would instead review the 2002 Voluntary Code of Practice.

The voluntary code is designed to prevent upward-only rent reviews within the property industry.

The Government said its latest review would include implementing an effective complaints procedure.

Minister for housing and planning Yvette Cooper told parliament: "We want to make sure everyone negotiating a lease adopts the code."

But the Federation of Private Business (FPB) said the Government had not gone far enough.

FPB chief executive Nick Goulding said: "Labour has failed to keep its 2001 manifesto promise to tackle upward-only rent reviews, which are crippling many small firms such as restaurants and hotels."

A report by Reading University, commissioned by the Government, also said the voluntary code was not working.

"Among leases still containing rent review provisions, the upward-only review is virtually universal," the report said.

"Tenants and property agents think landlords would be unwilling to agree to an up/down review."

by Shirley Kumar

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