A NEW CODE for commercial lease negotiations is set to come into force with the aim of improving quality and fairness for businesses.
The “Code for Leasing Business Premises” from RICS will be introduced from 1 September encourages all parties to seek advice from property professionals to improve negotiations, ensuring they proceed properly.
The code will assist RICS members in ensuring that landlords, tenants and guarantors who they are advising have a clear understanding of the commitments that they are entering and help the parties make informed decisions.
Applying to England and Wales, the statement has the backing of the Law Society, BPF (British Property Federation), REVO (Retail Evolution), BCO (British Council for Offices) and the FSB (Federation of Small Business).
Paul Bagust, RICS Global Property Standards Director said, “The UK’s commercial market is changing; retail is facing some of its toughest times as consumers change the way they interact with their highstreets.
“The office sector is being transformed by flexible work space. By working with FSB, the Law Society, REVO, BCO and BPF we have been able to take existing industry guidance and cement them into RICS formal requirements.
“RICS property professionals work towards the highest standards and are instrumental in the success of the UK’s built and natural environment.
“By working to ensure lease negotiations for commercial tenants, landlords and guarantors not only offer flexibility to suit current market trends but are transparent and clear to understand, it can hopefully help promote more investment into the UK’s high streets.”
It follows 2018’s ‘Service charges in commercial property’ guidance which set out to create a fairer and more professional approach to property management, which RICS says has resulted in the process becoming more transparent for commercial tenants and helping to outlaw “rogue” landlords and managing agents.
|The code itself can be found here|