The new lease has been created specifically with new and independent high street retail property in mind. Image courtesy of rgbstock/ Michal Zacharzewski.
Parliamentary Under-Secretary for Business, Innovation and Skills Baroness Wilcox
yesterday (July 4) announced the launch of a new business lease designed to make it simpler for small businesses to move premises
more quickly and at a lower cost.
The lease has been created specifically with new and independent high street retail property
in mind and is the result of a collaboration between property professionals, landlords and the retail sector. It offers flexible terms for a short term lease of up to five years with no rent review.
Development of the new lease was undertaken by the Royal Institution for Chartered Surveyors
(RICS), British Retail Consortium
and British Property Federation
. Members of RICS advised on the lease which was authored by Nick Darby, a solicitor with SNR Denton UK LLP
Baroness Wilcox commented: "This initiative will make life simpler for independent retailers and other small businesses. Negotiating a lease for a shop or office should not be a daunting task. By using this new contract both landlord and tenant will know that they are agreeing fair terms that provide clarity for both sides."
“This is a significant step in the government’s work to make it easier for small businesses to survive and prosper. Government will work with the private sector to ensure small businesses are accessing the new contract and reaping its benefits.”
Paul Bagust, Associate Director of Professional Groups and Forums at RICS, said: “In simplifying the leasing process for landlords and small business tenants, we hope to support SMEs and provide a boost to the British high street in a time of decline
– thereby contributing to overall UK economic productivity."
“Moreover, by offering mutually beneficial terms to landlords and tenants in a flexible lease, we are directly addressing the principles of the Code for Leasing Business Premises - identified in the Portas Review
as a key tool in tackling the high street’s decline.”
The Small Business Lease is free to download from the Department of Business, Innovation & Skill’s website