Industry could face legislation on leases, says agent

The industry could be facing more legislation if it fails to take on board the Code of Practice for Commercial Leases, says Barry Gillham chairman of...

The industry could be facing more legislation if it fails to take on board the Code of Practice for Commercial Leases, says Barry Gillham chairman of Fleurets.

He believes that the industry could be facing legislation as early as 2004/2005 if it fails to act and take on board the major elements of the voluntary code.

The code, which covers all property companies from office to retail, is meant to provide an outline of good practice for landlord and tenant lease negotiations.

It was prepared by a working group representing all sides of the property industry and urges landlords to offer alternatives to upward-only rent reviews.

It says they should be providing tenants with various lengths of leases with a range of appropriate rents.

Mr Gillham (pictured) said: "The government is reviewing the position across the entire property spectrum in light of the code of practice.

"The property industry is being given the opportunity to put its own house in order. But it has been slow to respond. If anything pub landlords have been slower still and there is now a real prospect of legislation."

Earlier this year there was some concern about the credibility of the code and fears were raised that companies could be claiming they were compliant without being officially monitored.

Mr Gillham was speaking at a conference run by the Association of Licensed Multiple Retailers in Birmingham last week.

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