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After a 3 month consultation the Office of National Statistics (ONS) has chosen not to bring the RPI more in line with the slower rising CPI. However, the ONS will be introducing a new, additional index of inflation – RPIJ.
The RPIJ will use a different formula than that used to calculate RPI and the ONS believe that this will be a much better measure of inflation.
So, away from the world of pension funds etc, what does this mean for tenants? Well, for existing lease arrangements, tenants will be stuck with the contractual RPI and will have to continue paying rents that are calculated using a formula which is not consistent with inflation. However, once the RPIJ starts to be published in March 2013, we’ll certainly be asking our retailer clients tenants whether they’d like to consider a move to the new RPIJ.
The Government appears set to announce plans on ‘living with Covid to restore freedom’. With the success of the retail and hospitality sector key to recovery, what protections will be on offer to tenants to deal with Covid-19 rent arrears?
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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.
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.
Partner and Head of Real Estate
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