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The federal government’s ban on upward-only lease hikes on industrial property might result in landlords searching for lease will increase through different means, a lawyer claimed.
Patrick Ansell, authorized head of litigation at Taylor Rose legislation agency, steered a ban might end in landlords utilizing mounted periodic will increase agreed at first of the tenancy.
Ansell mentioned: “Other than the industrial implications for landlords and traders of a ban on upward-only lease hikes on industrial properties, the proposals might even have unintended penalties from a authorized perspective.
“For instance, it’s potential that landlords would search to extend lease via various mechanisms akin to mounted periodic will increase agreed at first of the tenancy slightly than upward-only lease critiques.
“It’s also potential that landlords might be extra inclined to insist on contracting out of the safety of tenure provisions below the Landlord and Tenant Act 1954, to keep away from being tied to a tenant for an indefinite interval with the danger of declining lease as soon as they’re in occupation.”
The ban on upward-only lease critiques is contained within the English Devolution and Neighborhood Empowerment Invoice (2025).
The invoice is at the moment on the report stage within the Home of Lords, having handed via all of the readings within the Commons and two readings within the Lords.
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