Changes to the Landlord and Tenant Act 1954
The previous administrations was pressing for changes to this Act which would ensure that rent reviews will operate both in an upwards and downwards direction. At present most rent review clauses provide that rent on review can only increase. Whilst such clauses were devised to ensure that rents stayed at market level during times of inflation, they have effectively prevented rents staying in line with market levels when rents fall. This has been entirely to the disadvantage of the tenant who can find that he is unable to sublet or assign he lease as the rent is too high. Landlords are being encouraged to introduce bi-directional rent reviews in new leases without being forced to by legislation. Indeed one major property company has announced that they propose to do so unilaterally.
Regulatory Reform (Business Tenancies)(
This Order came into effect in June 2004 and provides many procedural changes to the way the Landlord and Tenant Act 1954 operates particularly at the end of leases when time traps exist for both parties. These if not avoided can result in loss of statutory rights. Some of these time traps will still exist under the rules created by the Order. In the new regime the provisions regarding interim rent have changed and tenants as well as landlords can apply for an interim rent to be determined. If renewal is not contested then the interim rent will be equal to the rent under the renewed tenancy rather than a rent somewhere between the old and new rents..