Brown&Co: Time to cut red tape in commercial real estate

It’s interesting to look at the picture for business tenants because their success drives higher returns and profitability for the real estate owners and investors.

And it’s good news with the Law Commission’s pledge to review the Landlord and Tenant Act 1954.

The act has been in place for over half a century and has created a system that has proved inflexible, bureaucratic and out of date, causing extra costs and delays for both landlords and tenants.

The review, with the Law Commission aiming to publish a consultation paper this December, aims to develop a more modern legal framework that is widely used rather than opted out of.

Rob Flint, commercial surveyor at Brown&Co, Norwich (Image: Brown&Co)

For commercial landlords, it could result in a more streamlined, cost-effective leasing process – reducing the number of void periods, increasing occupancy rates and improving the financial performance of portfolios.

For tenants, it could mean greater security and flexibility in their leases – giving them greater confidence. This, in turn, could boost high streets, large retail spaces and potentially create more jobs.

Then there is the separate topic of more help with business rates from the new Non-Domestic Rating Bill, currently at its second reading stage in the House of Commons.

This proposes incentivised property improvements and more frequent revaluations reflecting current market conditions.

The measures would review and reform business rates in England, making them fairer with reassessments every three years instead of the current five, meaning those with falling values would see their bills drop sooner.

All this is a hugely positive development with the potential to create a more efficient and flexible CRE market that supports business growth and community development.

You can contact Rob Flint, commercial surveyor, Brown&Co, Norwich on 01603 629871 or visit brown-co.com