The Rent Review Specialist
Concurrent complex submissions
Every so often, a rent review is referred to an arbitrator or independent expert, depending upon the dispute resolution procedure in the lease. And, every so often, depending upon whether I am acting for the landlord or the tenant, the dispute resolution procedure requires me to comply with a timetable for submissions and counter-submissions or reports and replies depending on whether I am acting as an advocate or an expert witness. Such submissions or reports are never short: generally, I write approximately 20,000 words, followed by another 10,000 or so for the counter-submissions or replies.
Unless instructed at the dispute resolution stage, I rarely charge extra for “going to arbitration”. Concentrating on carefully crafted writing is so demanding that time slips by. Usually, referrals, as the dispute procedures are known by, occur occasionally, but recently, I have been dealing with two concurrently—one for a landlord of a trade counter and one for the tenant of a nightclub.
Usually, my typical working day is from about 09:00 until 19:00, but two referrals took them until 22:30 and the last few days of one until 23:45 on a Sunday. 12-14 hours working days is exhausting but satisfying; fortunately, I sleep well. I thanked the nightclub client for what I have found the most challenging referral I have dealt with in my entire career: I suppose, too, I should thank the landlord - for had it not been for the landlord’s desire to double the rent of premises of the Government’s enforced closure from the start of Covid-19 lockdown 1 in March 2020 until July 2021 the opportunity to exercise my skills to the limit might never have arisen.
Unless instructed at the dispute resolution stage, I rarely charge extra for “going to arbitration”. Concentrating on carefully crafted writing is so demanding that time slips by. Usually, referrals, as the dispute procedures are known by, occur occasionally, but recently, I have been dealing with two concurrently—one for a landlord of a trade counter and one for the tenant of a nightclub.
Usually, my typical working day is from about 09:00 until 19:00, but two referrals took them until 22:30 and the last few days of one until 23:45 on a Sunday. 12-14 hours working days is exhausting but satisfying; fortunately, I sleep well. I thanked the nightclub client for what I have found the most challenging referral I have dealt with in my entire career: I suppose, too, I should thank the landlord - for had it not been for the landlord’s desire to double the rent of premises of the Government’s enforced closure from the start of Covid-19 lockdown 1 in March 2020 until July 2021 the opportunity to exercise my skills to the limit might never have arisen.
The Commercial Rent (Coronavirus) Act 2022
27/09/2023 - The Commercial Rent (Coronavirus) Act 2022 - Arbitration - Rent - Public House - RICS - 2023
Acting for Mark & Sons Ltd, the Freeholder-Landlord of a public house in London SW19, I have helped achieve its objective for the rent payable for the protected rent debt period defined by The Commercial Rent (Coronavirus) Act 2022. This Act has a short life for the dispute procedure. Application for arbitration had to be made between 25 March 2022 and 24 September 2022. Unusually for arbitration, which is usually private, the award is published on the accredited body’s website, in this case, the RICS
https://www.rics.org/dispute-resolution-service/drs-services/covid-rent-arrears-arbitration
(Gouldbourn 3 - 13/07/2023 (PDF 0.20MB).
The Arbitrator was Simon Gouldbourn BSc MRICS ACIArb of KLM Real Estate, London W1.
Unusually, (the Act permits otherwise), commercially sensitive information is not excluded. If you are interested in reading the award, then you may do so.
https://www.rics.org/dispute-resolution-service/drs-services/covid-rent-arrears-arbitration
(Gouldbourn 3 - 13/07/2023 (PDF 0.20MB).
The Arbitrator was Simon Gouldbourn BSc MRICS ACIArb of KLM Real Estate, London W1.
Unusually, (the Act permits otherwise), commercially sensitive information is not excluded. If you are interested in reading the award, then you may do so.
The Commercial Rent (Coronavirus) Act 2022
28/03/2023 - The Commercial Rent (Coronavirus) Act 2022 - Rent - Arbitration - NIghtclub - RICS - 2023
Acting for Yellowdice Limited, the Tenant of a nightclub in London SE11, I have helped achieve its objective for the rent payable for the protected rent debt period defined by The Commercial Rent (Coronavirus) Act 2022. This Act has a short life so far as the dispute procedure is concerned. Application for arbitration had to be made between 25 March 2022 and 24 September 2022. Unusually for arbitration, which is usually private, the award is published on the accredited body’s website, in this case, the Consumer Code for Online Dispute Resolution (CCODR) - https://www.ccodr.com/crcas-awards. If you are interested in reading the award, then you may do so. Still, likely, it won’t tell you anything because, under the Act, commercially sensitive information can be excluded from the Award, as has been done in this case.
Property Law UK
My purpose is to use my diverse talents to help others succeed. To contribute to professional wisdom and market intelligence, since September 2022, I have been a guest editor for Property Law UK, a long-established high-quality publication and online resource for UK Property Law whose other guest editors include barristers and solicitors. For more information, please visit https://www.propertylawuk.net
Founded by Gary Webber, originally a practising barrister and nowadays one of the UK's leading mediators. PLUK is owned by Ian Quayle, a qualified solicitor and CEO of IQ Legal Training. a training provider offering virtual and face-to-face training in various specialist legal areas. For more information, please visit https://iqlegaltraining.com.
Founded by Gary Webber, originally a practising barrister and nowadays one of the UK's leading mediators. PLUK is owned by Ian Quayle, a qualified solicitor and CEO of IQ Legal Training. a training provider offering virtual and face-to-face training in various specialist legal areas. For more information, please visit https://iqlegaltraining.com.
CPIH and Rent Calculator
CPI is a European measure, CPIH takes into account the cost of housing. CPIH has become the Government’s measure of choice. CPIH calculates its averages differently to RPI, so tends to be consistently lower.
With the news that the RPI is to be phased out by 2030, I have added a CPIH (Consumer Prices Index Housing) and Rent Calculator; please click here.
With the news that the RPI is to be phased out by 2030, I have added a CPIH (Consumer Prices Index Housing) and Rent Calculator; please click here.
Covid-19 and rent review
At rent review and lease renewal, the impact of the respiratory disease COVID-19, commonly known as Coronavirus, highlights two critical factors in negotiation and rental valuation: (1) post-review evidence and (2) post-review event. The principles are reasonably straightforward to understand from case law, even if not always appreciated!
(1) Post-review evidence. The principle is that transactions after a review/valuation date are generally admissible in evidence. However, the weight to be given to such evidence is a matter of assessment. The longer the period between the valuation date and the post-review date comparable, the less weight the evidence may carry.
(2) Post-review event. A post-review event is inadmissible as evidence because what happened after the valuation date is not a foreseeable event on the valuation date. The parties are not entitled to take into account subsequent events which showed how possibilities turned out: to do so would introduce knowledge not available at the valuation date.
One can have regard to events that have occurred or circumstances which existed at any time up to the valuation date. Such are “known knowns” on the valuation date. ‘Known knowns” may include transactions on comparable properties and other general events affecting property values.
One can also regard “known unknowns” - such expectations of future events as might exist at the valuation date, provided that those would be matters that would be known in the hypothetical market at the valuation date. Expectations of future events often affect property values at a given date: for example, events at a national level, such as changes in interest rates, changes in property taxation, or anticipated local events.
However, actual future events must be disregarded, except to the extent they were foreseeable and foreseen at the valuation date. Landlord and tenant cannot know at the valuation date what might happen a few months after they agree on a rent. They can only be credited with the degree of optimism or pessimism in the market on the valuation date.
Coronavirus? On 31 December 2019, the disease, now known as Covid-19, the outbreak was reported as started in Wuhan, China. 31 January 2020: the first Coronavirus cases in the UK. Whether 31 January 2020 will generally be accepted as the effective date in the context of a post-review event, I shall reason accordingly.
(1) Post-review evidence. The principle is that transactions after a review/valuation date are generally admissible in evidence. However, the weight to be given to such evidence is a matter of assessment. The longer the period between the valuation date and the post-review date comparable, the less weight the evidence may carry.
(2) Post-review event. A post-review event is inadmissible as evidence because what happened after the valuation date is not a foreseeable event on the valuation date. The parties are not entitled to take into account subsequent events which showed how possibilities turned out: to do so would introduce knowledge not available at the valuation date.
One can have regard to events that have occurred or circumstances which existed at any time up to the valuation date. Such are “known knowns” on the valuation date. ‘Known knowns” may include transactions on comparable properties and other general events affecting property values.
One can also regard “known unknowns” - such expectations of future events as might exist at the valuation date, provided that those would be matters that would be known in the hypothetical market at the valuation date. Expectations of future events often affect property values at a given date: for example, events at a national level, such as changes in interest rates, changes in property taxation, or anticipated local events.
However, actual future events must be disregarded, except to the extent they were foreseeable and foreseen at the valuation date. Landlord and tenant cannot know at the valuation date what might happen a few months after they agree on a rent. They can only be credited with the degree of optimism or pessimism in the market on the valuation date.
Coronavirus? On 31 December 2019, the disease, now known as Covid-19, the outbreak was reported as started in Wuhan, China. 31 January 2020: the first Coronavirus cases in the UK. Whether 31 January 2020 will generally be accepted as the effective date in the context of a post-review event, I shall reason accordingly.
ML Converter
Whether landlord or tenant, it may be useful to convert sqft to sqm and vice versa; and £psf to £psm and vice versa.
The ML Converter is free of charge to use and may be found with ITZA Calculator.
The ML Converter is free of charge to use and may be found with ITZA Calculator.
ITZA Calculator
With shop premises, whether landlord or tenant, it may be useful to calculate ITZA and with a Zone A £ rate value the rent.
I have designed the ITZA Calculator. It calculates the area of each zone in terms of Zone A (ITZA), provides a total ITZA and with a Zone A £ value to calculate the rent yearly and monthly. The ITZA Calculator is free of charge to use and may be found at ITZA Calculator.
If you are unfamiliar-with the concept of ITZA, please visit explanation of ITZA
I have designed the ITZA Calculator. It calculates the area of each zone in terms of Zone A (ITZA), provides a total ITZA and with a Zone A £ value to calculate the rent yearly and monthly. The ITZA Calculator is free of charge to use and may be found at ITZA Calculator.
If you are unfamiliar-with the concept of ITZA, please visit explanation of ITZA
CPI and Rent Calculator
My RPI and Rent Calculator has become very popular so to complement I have added a CPI (Consumer Prices Index), For more information, please click here.
Rent review, evidence and GDPR
Rent Review, Evidence and GDPR
The General Data Protection Regulation (“GDPR”) came into force on 25 May 2018. Law-abiding businesses and organisations are checking whether computerised and manual records data/information and mailing lists are compliant, asking people to confirm opt-in. An opportunity for businesses to prune mailing lists, it is also an opportunity for anyone on a mailing list to decide whether to continue to subscribe.
Privacy is a big issue. For those of us not on Facebook, Twitter, Linked-in, etc, that such social media can and probably knows about us, merely because their users having agreed without a care for the consequences to allow the social media platform access to the users' contacts is not ideal, just something to have to come to terms with.
I have been registered under the Data Protection Act 1998 since November 2000. I respect privacy. In the business world, professional rules and codes of conduct normally require members (including employees and staff) to keep their clients’ affairs confidential. Although doubtless that is observed by lawyers and accountants, for some reason the same cannot be said of surveyors generally.
In the commercial property market, (as in every sector of the property market), all transactions and agreements between landlord and tenant are confidential. Strictly, as I understand, information is disclosable to unconnected persons only with permission of all the ‘parties’ concerned. I emphasise ‘parties’ because it is the parties whose permission is required, not their advisers. It is not permitted for one party to disclose information without first obtaining permission from the other party/parties. It is not permitted for an adviser to unilaterally decide without authority okay to disclose a confidentiality.
The reason that the same attitude towards confidentiality cannot be said of surveyors generally is not that many haven’t got time for all that nonsense, (any more than a certain type of person has any respect for GDPR), but for the consequences for valuation were confidentiality strictures to be enforced.
I daresay that, quite possibly, the commercial property market in its present form would collapse were it not for the free-sharing and unbridled circulation of confidential data/information. We surveyors do not make the market: we simply interpret it for the benefit our clients. Although valuation is not an exact science, the emphasis on the science, rather than the art (in other words, confident but unable to prove it), means that where the tangible evidence is not within the surveyor’s personal knowledge and experience, it must come from somewhere someone else.
What keeps the market in good shape is that between surveyors is an unwritten implied duty to keep shared data/information confidential. That duty applies not only to data/information where the surveyors themselves are or have been involved, but also data/information via usual behind-the-scenes channels, for example, surveyors imparting and sharing data/information, reciprocal interests.
Where the valuation for capital and rental valuation is based upon evidence, commonly known as “comparable evidence” - whether or not it would pass the tests of comparability - the availability of the evidence depends upon someone somewhere authorised to disclose or more commonly and most likely breaching a confidence.
It is not compulsory (except by court order) for landlords and/or tenants and/or their respective surveyors to be helpful to one another. Indeed, many landlords and tenants prefer to mind their own business and not become involved. Tenants especially can be reluctant to disclose information about the tenancy in case the data should end up being used against them. So, although the terminology ‘open market’ means anyone and everyone, in practice it can mean just a few. At rent review (to an extent at lease renewal also), within the meaning of ‘hypothetical willing’ is that the existence of a market is assumed, also it is not necessary to identify who would want the premises only that someone somewhere would. But surveyors and valuers, particularly for capital and mortgage valuations, tend to prefer something more concrete.
Investors likewise: as a ploy to attract offers from the inexperienced, the trend in recent years for particulars of (overpriced?) propositions is to include a list of recent transactions prices and rents as a means of reassurance.
The generality of data, details of premises to let, leases for assignment and sub-let, press releases, industry media and company reports, rating areas, and so on, are useful as rough guides, but at rent review and lease renewal far more detail is needed.
Where rent review is to open market rent and the valuation based upon evidence, unless the landlord and/or the tenant between them own all the properties that are forever the only evidence, inevitably some if not all of the evidence will have to be sourced from others.
The imparting and sharing of information between surveyors respectful of the implied duty of confidentiality enables the data/information to be interpreted for use or not during negotiation; and as evidence to a third party such as an arbitrator, independent expert, or in court.
A difficulty arises when surveyors in receipt of confidential information are obliged or expected to disclose that information to clients, in explanation of how a recommendation has been arrived at and in written reports for rent review and lease renewal.
It is said that a characteristic amongst historians is nosiness. I venture to suggest the same can be said of local traders and small shopkeepers. In my limited experience, one has to have the patience of a saint to listen to all manner of irrelevancies when advising local traders on rent review and business tenancies: wanting to know what everyone else is paying and expecting to be told as a matter of course stretches the bounds of confidentiality.
The difference between being curious and being nosy involves a genuine interest, rather than trying to pry information out, perhaps for gossip or to judge. Nosiness usually involves trying to be privy to something that isn't really any of the enquirer’s business. To whom the information belongs is a moot point. Where the information is obtained to serve a particular client, whether the evidence (presuposing the information useful as evidence) would be forthcoming were its source not wanting to help the particular surveyor and/or indirectly the particular client is I should think unlikely. But where the evidence is obtained by the surveyor for the sake of it, or from other matters nothing to do with the client in question, I see no reason why that client should be able to claim ‘ownership’, let alone expect to be provided with full details.
The keeping of old files after completion of an instruction is a matter of law and thereafter data storage space. What surveyors do with the evidence that arises during negotiation is a matter for the surveyors concerned. For my part, I centralise the information on my database: it might never come in handy but if it were to then at least I wouldn’t have to wade through an old file.
At rent review for determination of the rent by an Independent Expert, the parties or their surveyors will normally preface their respective reports with something along the lines of my “neither the whole or any part of this report or any reference to it may be included in any document or communication in any way other than for the purpose for which it is intended, without my written approval of the form and context in which it may appear.” Whether that is actually respected depends upon the trustworthiness of the persons involved in the matter.
At rent review arbitration, confidentiality is the law. Per Dolling-Baker v Merrett [1990] “as between parties to an arbitration, although the proceedings are consensual and may thus be regarded as wholly voluntary, their very nature is such that there must, in my judgment, be some implied obligation on the parties not to disclose or use for any other purpose any documents prepared for and used in the arbitration, or transcripts of notes of the evidence in the arbitration or the award, save with the consent of the other party, or pursuant to an order of leave of the Court .. .. " " ... the fact that a document is used in an arbitration does not confer on it any confidentiality or privilege which can be availed of in subsequent proceedings ... But that the obligation exists in some form appears to me to be abundantly apparent. It is not a question of immunity or public interest. It is a question of an implied obligation arising out of the nature of arbitration itself.”
At a lease renewal in court, (substantive hearing), it is common for a surveyor expert witness to cite evidence obtained from others. Rules regarding hearsay evidence have been relaxed. Pro-forma evidence provided by surveyors is notoriously unreliable. Whether the evidence is investigated and verified for authenticity depends upon the expert’s conscientiousness. If the evidence presented to the court does not also state the reason to the source of the evidence the reason for wanting the evidence or what it would be used for then in the context of confidentiality it could be reasoned a data breach. Also, assuming the client has the right to see its lawyer’s file, also its surveyor’s file, I should think it necessary for the lawyer and/or surveyor to each inform the client of the need to respect the confidentiality of any evidence. And theoretically if not in practice for the lawyer and/or surveyor to have gotten permission from the source of the evidence to allow others to see the evidence. Generally, in court, anyone present and listening becomes privy to confidential data/information. I have yet to read a law report that mentions that the evidence in court has confidentiality clearance.
Between landlord and tenant, whether either or both parties are represented or not, it is not necessary for the rent review clause to be satisfied during negotiation. Landlord and tenant, between themselves or represented, can agree whatever they like. It is only when the agreement is cited as evidence in connection with another matter that how the agreement was arrived at is scrutinised. No criticism can be levelled at landlords and tenants, represented or not, for the rent they agree. The difficulty for surveyors is in drawing comparison: any bias in assuming the parties would have satisfied the review clause stems from a need to control the direction of the market by steering the evidence in favour of the client.
Where the information has not been released from confidentiality by permission of the parties concerned, it will be interesting to experience whether a breach of GDPR can be used to defeat the admissibility of that evidence.
The General Data Protection Regulation (“GDPR”) came into force on 25 May 2018. Law-abiding businesses and organisations are checking whether computerised and manual records data/information and mailing lists are compliant, asking people to confirm opt-in. An opportunity for businesses to prune mailing lists, it is also an opportunity for anyone on a mailing list to decide whether to continue to subscribe.
Privacy is a big issue. For those of us not on Facebook, Twitter, Linked-in, etc, that such social media can and probably knows about us, merely because their users having agreed without a care for the consequences to allow the social media platform access to the users' contacts is not ideal, just something to have to come to terms with.
I have been registered under the Data Protection Act 1998 since November 2000. I respect privacy. In the business world, professional rules and codes of conduct normally require members (including employees and staff) to keep their clients’ affairs confidential. Although doubtless that is observed by lawyers and accountants, for some reason the same cannot be said of surveyors generally.
In the commercial property market, (as in every sector of the property market), all transactions and agreements between landlord and tenant are confidential. Strictly, as I understand, information is disclosable to unconnected persons only with permission of all the ‘parties’ concerned. I emphasise ‘parties’ because it is the parties whose permission is required, not their advisers. It is not permitted for one party to disclose information without first obtaining permission from the other party/parties. It is not permitted for an adviser to unilaterally decide without authority okay to disclose a confidentiality.
The reason that the same attitude towards confidentiality cannot be said of surveyors generally is not that many haven’t got time for all that nonsense, (any more than a certain type of person has any respect for GDPR), but for the consequences for valuation were confidentiality strictures to be enforced.
I daresay that, quite possibly, the commercial property market in its present form would collapse were it not for the free-sharing and unbridled circulation of confidential data/information. We surveyors do not make the market: we simply interpret it for the benefit our clients. Although valuation is not an exact science, the emphasis on the science, rather than the art (in other words, confident but unable to prove it), means that where the tangible evidence is not within the surveyor’s personal knowledge and experience, it must come from somewhere someone else.
What keeps the market in good shape is that between surveyors is an unwritten implied duty to keep shared data/information confidential. That duty applies not only to data/information where the surveyors themselves are or have been involved, but also data/information via usual behind-the-scenes channels, for example, surveyors imparting and sharing data/information, reciprocal interests.
Where the valuation for capital and rental valuation is based upon evidence, commonly known as “comparable evidence” - whether or not it would pass the tests of comparability - the availability of the evidence depends upon someone somewhere authorised to disclose or more commonly and most likely breaching a confidence.
It is not compulsory (except by court order) for landlords and/or tenants and/or their respective surveyors to be helpful to one another. Indeed, many landlords and tenants prefer to mind their own business and not become involved. Tenants especially can be reluctant to disclose information about the tenancy in case the data should end up being used against them. So, although the terminology ‘open market’ means anyone and everyone, in practice it can mean just a few. At rent review (to an extent at lease renewal also), within the meaning of ‘hypothetical willing’ is that the existence of a market is assumed, also it is not necessary to identify who would want the premises only that someone somewhere would. But surveyors and valuers, particularly for capital and mortgage valuations, tend to prefer something more concrete.
Investors likewise: as a ploy to attract offers from the inexperienced, the trend in recent years for particulars of (overpriced?) propositions is to include a list of recent transactions prices and rents as a means of reassurance.
The generality of data, details of premises to let, leases for assignment and sub-let, press releases, industry media and company reports, rating areas, and so on, are useful as rough guides, but at rent review and lease renewal far more detail is needed.
Where rent review is to open market rent and the valuation based upon evidence, unless the landlord and/or the tenant between them own all the properties that are forever the only evidence, inevitably some if not all of the evidence will have to be sourced from others.
The imparting and sharing of information between surveyors respectful of the implied duty of confidentiality enables the data/information to be interpreted for use or not during negotiation; and as evidence to a third party such as an arbitrator, independent expert, or in court.
A difficulty arises when surveyors in receipt of confidential information are obliged or expected to disclose that information to clients, in explanation of how a recommendation has been arrived at and in written reports for rent review and lease renewal.
It is said that a characteristic amongst historians is nosiness. I venture to suggest the same can be said of local traders and small shopkeepers. In my limited experience, one has to have the patience of a saint to listen to all manner of irrelevancies when advising local traders on rent review and business tenancies: wanting to know what everyone else is paying and expecting to be told as a matter of course stretches the bounds of confidentiality.
The difference between being curious and being nosy involves a genuine interest, rather than trying to pry information out, perhaps for gossip or to judge. Nosiness usually involves trying to be privy to something that isn't really any of the enquirer’s business. To whom the information belongs is a moot point. Where the information is obtained to serve a particular client, whether the evidence (presuposing the information useful as evidence) would be forthcoming were its source not wanting to help the particular surveyor and/or indirectly the particular client is I should think unlikely. But where the evidence is obtained by the surveyor for the sake of it, or from other matters nothing to do with the client in question, I see no reason why that client should be able to claim ‘ownership’, let alone expect to be provided with full details.
The keeping of old files after completion of an instruction is a matter of law and thereafter data storage space. What surveyors do with the evidence that arises during negotiation is a matter for the surveyors concerned. For my part, I centralise the information on my database: it might never come in handy but if it were to then at least I wouldn’t have to wade through an old file.
At rent review for determination of the rent by an Independent Expert, the parties or their surveyors will normally preface their respective reports with something along the lines of my “neither the whole or any part of this report or any reference to it may be included in any document or communication in any way other than for the purpose for which it is intended, without my written approval of the form and context in which it may appear.” Whether that is actually respected depends upon the trustworthiness of the persons involved in the matter.
At rent review arbitration, confidentiality is the law. Per Dolling-Baker v Merrett [1990] “as between parties to an arbitration, although the proceedings are consensual and may thus be regarded as wholly voluntary, their very nature is such that there must, in my judgment, be some implied obligation on the parties not to disclose or use for any other purpose any documents prepared for and used in the arbitration, or transcripts of notes of the evidence in the arbitration or the award, save with the consent of the other party, or pursuant to an order of leave of the Court .. .. " " ... the fact that a document is used in an arbitration does not confer on it any confidentiality or privilege which can be availed of in subsequent proceedings ... But that the obligation exists in some form appears to me to be abundantly apparent. It is not a question of immunity or public interest. It is a question of an implied obligation arising out of the nature of arbitration itself.”
At a lease renewal in court, (substantive hearing), it is common for a surveyor expert witness to cite evidence obtained from others. Rules regarding hearsay evidence have been relaxed. Pro-forma evidence provided by surveyors is notoriously unreliable. Whether the evidence is investigated and verified for authenticity depends upon the expert’s conscientiousness. If the evidence presented to the court does not also state the reason to the source of the evidence the reason for wanting the evidence or what it would be used for then in the context of confidentiality it could be reasoned a data breach. Also, assuming the client has the right to see its lawyer’s file, also its surveyor’s file, I should think it necessary for the lawyer and/or surveyor to each inform the client of the need to respect the confidentiality of any evidence. And theoretically if not in practice for the lawyer and/or surveyor to have gotten permission from the source of the evidence to allow others to see the evidence. Generally, in court, anyone present and listening becomes privy to confidential data/information. I have yet to read a law report that mentions that the evidence in court has confidentiality clearance.
Between landlord and tenant, whether either or both parties are represented or not, it is not necessary for the rent review clause to be satisfied during negotiation. Landlord and tenant, between themselves or represented, can agree whatever they like. It is only when the agreement is cited as evidence in connection with another matter that how the agreement was arrived at is scrutinised. No criticism can be levelled at landlords and tenants, represented or not, for the rent they agree. The difficulty for surveyors is in drawing comparison: any bias in assuming the parties would have satisfied the review clause stems from a need to control the direction of the market by steering the evidence in favour of the client.
Where the information has not been released from confidentiality by permission of the parties concerned, it will be interesting to experience whether a breach of GDPR can be used to defeat the admissibility of that evidence.
How to do a rent review - 02
At rent review, the starting point obviously is to read the lease. I say ‘obviously’ because … For further reading, please visit LandlordZone
How to do a rent review - 01
In 1978, I published a pamphlet “The Framework of Rent Review Clauses” which was given free publicity in leading law and property journals. In 1983, I published … For further reading, please visit LandlordZone
The Great British Housing Disaster
The above link to a 1984 documentary is worth viewing* for the insight it offers into short-term thinking. (*Approximately 50 minutes) For further reading, please visit LandlordZone
Tin God
28/06/2017 - LandlordZONE - Arbitration - 2017 - Independent Expert - Dispute Resolution - Costs - RICS
At commercial property rent review, the dispute resolution procedure is either to an arbitrator or independent expert. Sometimes the lease provides for… For further reading, please visit LandlordZone
Commercial Property Costs
For anyone coming or escaping from the residential buy-to-let market, the thought of investing in commercial property with full repairing and insuring leases, long-term leases, and upward-only rent review, must surely seem like … For further reading, please visit LandlordZone newsletter - click here
Rent review: words versus numbers
An informed rent review surveyor and an experienced lawyer working as a team on the drafting and approval of the lease documentation is arguably the only way that the client’s interest can reasonably be described as … For further reading, please visit LandlordZone newsletter - click here
Mercy of the Market
29/03/2017 - Investment - Location - Yield Compression - 2017 - Auction - Rental Growth - Capital Growth - LandlordZONE
Any form of investment whose profit-potential depends upon finding someone somewhere to buy it off you, preferably for more than you paid, is risky. For further reading, please visit LandlordZone newsletter - click here
Thinking inside the box
Anyone can invest in commercial property: all you need is the cash or enough cash to get a mortgage. Anyone can invest isn’t the same as becoming an investor. To become an investor, one needs to… For further reading, please visit LandlordZone newsletter - click here
RICS Dispute Resolution Fee Increase
On 1 March 2017, the RICS Dispute Resolution Services (DRS) is increasing its fee for applying to appoint an arbitrator or Independent expert to £425.00 (inclusive of VAT).
Exit Strategy
An alternative investment, property is an alternative to cash and other liquid forms of investment. Arguably, commercial property is more of an alternative … For further reading please visit LandlordZone