Many leases contain provisions which prevent a tenant from sub-letting unless the rental achieved on the sub-letting is at least the same as the head-lease rent. In a falling market, as now we have, this is tantamount to an absolute prohibition on sub-letting. Buoyed by the apparent success of the British Retail Consortium’s Rent Monthly campaign, it seems that the retail lobby is now turning its attention to such restrictive sub-letting provisions. Almost four years ago, the British Property Federation sought to stave off any possible legislative intervention in this area by issuing its Subletting Declaration. This was to discourage landlords from inserting such restrictions in future leases and, wherever appropriate, to encourage the waiver of such clauses for existing tenants. Now, a London firm of surveyors has started a petition to lobby business secretary Lord Mandelson for a change in the law on sub-letting. Under its proposed reforms, landlords would no longer be allowed to refuse consent to sub-leases struck at below the market rent. Click on “Over-rented Britain” to read more.
Property PSL