Commercial Property Leases

HC Deb 31 March 1993 vol 222 cc291-2W

Mr. Thomason

To ask the Secretary of State for the Environment what proposals the Government have to reform the basis for commercial property leases.

Sir George Young

My right hon. Friend the Lord Chancellor has today announced that the Government propose to implement the Law Commission Report (No. 174) "Landlord and Tenant Law: Privity of Contract and Estate" for future, but not for existing leases.

The Government have been conscious of other concerns about the operation of commercial property leases. They have no intention of legislating in any way that would alter the terms in existing contracts. However, the Government will shortly produce a consultation paper inviting views on three aspects of commercial leasing which have been causing concern: Upward Only Rent Reviews; Confidentiality clauses; and dispute resolution procedures.

We will consult widely with interested bodies and will carefully consider the outcome before deciding whether it would be appropriate to introduce legislation on these issues in relation to new leases.