§ Mr. PollardTo ask the Secretary of State for the Environment, Transport and the Regions what recent research he has undertaken on the impact of upward-only rent reviews on town centre property markets. [121483]
§ Ms Beverley HughesMy hon. Friend the Minister for Housing and Planning published a research report on 19 April about the impact of the property industry's Code of Practice on Commercial Property Leases. This considered, among other things, the extent of upward-only review clauses in the property market generally. The research did not look specifically at town centre property markets.
The study, by the University of Reading, found that upward-only rent review clauses still predominate in longer leases. We have asked the property market and professions to consider how the market could best promote alternatives to upward-only rent review clauses. We recognise that landlords may seek a higher initial rent to offset the greater risk of letting without such a clause. It will therefore be important for market promotion to draw the tenant's attention to the offsetting advantages of renting without an upward-only provision, as well as to any higher rent.