Ban on Upward Only Rent Reviews to pit property landlords and pensions industry against retail industry
Ban on Upward Only Rent Reviews to pit property landlords and pensions industry against retail industry
- Critics argue that ban will undermine the value of commercial property and make it harder to finance new property development
Comments Nick Mattison, Managing Director, of Mattison Public Relations: “Government plans to ban upward only rent reviews (UORR) are a blast from the past.”
“Property landlords, including pension funds, will argue that banning UORR will undermine the value of that property and make it harder to secure lending to finance new commercial property developments.”
“Banning UORR changes a commercial property from being a secure fixed income style investment to one where the cashflows are much more volatile.”
“Last time this was tried the property industry managed to kick the proposals into the long grass.”
“This will be a test of the lobbying power of the pensions industry and property landlords versus retailers.”
“The retail industry has been very clear that some of the unusual features of the UK’s property market – like UORR and overly long leases – add substantially to their costs.”
“Before implementing any ban it would be sensible if the Government shared the research that they are using to justify this ban so that the research can be properly tested.”
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