Bira CEO, Andrew Goodacre's latest comments

"This has been around since 1954. There was talk of reform last year but those plans seem to have been shelved. A new government must address this issue because the Act is not fit for purpose in many ways.

"We have been asking for greater protection for tenants who are running good businesses but know that the landlord has all the power when it comes to lease renewal. We would also like to see the policy of upward only rents removed, replaced by  process that better reflects the market conditions. Changes to this kind of ACT take time, and I am sure the property owners would have different views to me. However, I think we all agree that change is necessary."

 

What do I need to know?

There have been several key reforms related to the Landlord and Tenant Act in the UK as of September 2021 that aim to provide increased protection and flexibility for businesses in relation to commercial rents.   

It's important to note that the specific details and requirements of the Landlord and Tenant Act can vary depending on the nature of the lease, the property type, and other factors. Therefore, it is advisable for businesses to seek professional advice or consult the latest legislation to ensure compliance and understanding of their rights and obligations under the Act. 

Our position

  1. Highlight the current practice of upward-only rent reviews, which can create an unfair burden on tenants
  2. Advocate for a revision of the landlord and tenant act to ensure greater security of tenure for tenants and the removal of upward-only rent reviews
  3. Emphasise that rents should reflect market conditions rather than being solely dictated by landlord demands

 

What you can do

Keep us informed by letting us know of any current issues, opinions or updates. Email membership@bira.co.uk. 

 

 

Our Latest News

  • Independent retailers mingle with top suppliers for 'Mica Exchange' in Peebles, Scotland

    Mica held its annual ‘Mica Exchange’ gathering over the weekend of 16th - 17th September at the picturesque Peebles Hydro Hotel & Spa in the Scottish Borders. The Exchange is an invitation-only event taking place in a different part of the UK each year that brings together Mica's...

  • Dexam launches new ranges in partnership with the RHS

    Following the success of their existing collections, Dexam have launched two new ranges in partnership with the Royal Horticultural Society (RHS). The Birds and Gertrude Jekyll textile ranges are now in stock and are made from organic cotton.

  • Bira CEO comments on the rise of shoplifting in UK stores & the effect on indie retailers

    Shoplifters in the UK are becoming increasingly "emboldened" and appear to be operating under more organised and coordinated efforts, often orchestrated by organised criminal groups. These groups steal to order, fuelling a growing black-market trade in various goods, from cheese and meat to luxury items. Retail experts have expressed concern over the rise of these "grab-and-go" raids and their impact on businesses.

  • Understanding the UK Plastic Packaging Tax: Registration, Returns, and Payments

    The Plastic Packaging Tax (PPT), implemented on April 1, 2022, marked a significant step towards reducing the environmental impact of plastic packaging in the United Kingdom. For businesses engaged in the manufacture or import of 10 tonnes or more of plastic packaging over a 12-month period, it is crucial to grasp the registration, return, and payment obligations associated with this tax. Even if your packaging comprises 30% or more recycled plastic, registration for PPT is mandatory and can be conveniently completed on the GOV.UK platform.

 

Some notable aspects of the reforms:

  1. Security of Tenure: The Landlord and Tenant Act provides commercial tenants with security of tenure, which means they have the right to remain in the premises after their lease expires. The Act offers various protections to prevent unfair eviction and provides the opportunity for lease renewal or negotiation of new lease terms.

  2. Rent Reviews: The Act governs rent reviews, which are periodic assessments of the rent payable by a tenant. Reforms aim to ensure transparency, fairness, and predictability in rent reviews, providing mechanisms for resolving disputes and avoiding excessive rent increases.

  3. Upward Only Rent Reviews: Historically, commercial leases often included clauses for upward-only rent reviews, meaning the rent could only increase at each review and could not decrease, regardless of market conditions. However, reforms have sought to address this issue by allowing tenants and landlords to negotiate more flexible rent review mechanisms that consider market fluctuations.

  4. Lease Length and Renewal: The Act provides procedures for lease renewals, allowing tenants to request a new lease at the end of their term. Reforms have aimed to simplify and streamline the renewal process, ensuring that tenants have the opportunity to negotiate favourable lease terms and promote stability for their businesses.

  5. Dispute Resolution: The Act provides mechanisms for resolving disputes between landlords and tenants, including rent disputes, lease renewals, and breaches of lease terms. Reforms have sought to improve the efficiency and accessibility of dispute resolution processes, such as through alternative dispute resolution methods or specialised tribunals. 

(It's important to note that specific reforms may have been implemented or proposed since then, and it's always advisable to consult the latest legislation or seek legal advice for the most up-to-date information.)