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Stories are hitting the newspapers this week that stores on some depressed high streets are being let for £1 rent so that landlords can avoid paying business rates on vacant units. This follows the British Retail Consortium’s challenge to the Chancellor, George Osborne, to re-think the proposed increase in 2012’s uniform business rates in line with September’s RPI figure which could mean an increase of 5.6% .
Mary Portas’ High Street Review is set to be published next month, where business rates may well be discussed. As rates increases are not set to kick in until April 2012, it is unlikely we have heard the last on this. If the government doesn’t step in, we may see an increase in these £1 rent lettings with a possibility that tenants in depressed areas ask their landlords for reductions in rent to cope with the increase with the alternative being a vacant unit.
Break rights have proved a fertile source of litigation over the last few years. More often than not, tenants have found themselves on the wrong end of the decisions. However, a Court of Appeal decision yesterday has bucked that trend.
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One of the requirements for tenants to contract out of the security of tenure regime contained in the Landlord and Tenant Act 1954 is that they make a simple or statutory declaration before entering into the lease.
Landlords should reconsider summary judgment if a Part 26A restructuring plan is pending.
A landlord’s claim for summary judgment to recover rent and service charge arrears accrued since the start of the pandemic against a non-essential retailer succeeded. Like London buses, a second such case has followed hot on its heels.
Partner and Head of Real Estate
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