Rent review 2014
Abstract
Purpose
The purpose of this legal update is to examine the recent case law relating to rent review in England and Wales. The paper argues that as rent terms have reduced in length, and as market conditions have tended to produce nil-uplifts, there have been relatively few review cases before the court. Cases that reach court tend to fall into two broad categories: contractual interpretation and challenges to third-party determination.
Design/methodology/approach
Review and analysis of case law in England and Wales.
Findings
There are no special rules for interpreting rent review clauses. The court's approach to contractual interpretation follows House of Lords and Supreme Court rulings culminating in Rainy Sky SA v Kookmin Bank (2011). There are also very limited circumstances in which the court will set aside an arbitrator's award, informed by a policy that favours upholding arbitration awards as a quick and cost-effective way to settle rent review disputes.
Practical implications
Rent review clauses must be interpreted in accordance with the normal rules of contractual interpretation. The court is unlikely to be swayed by submissions asserting the “general purpose” of rent review.
Originality/value
This is an original analysis of case law.
Keywords
Citation
Dowden, M. (2014), "Rent review 2014", Journal of Property Investment & Finance, Vol. 32 No. 5, pp. 530-533. https://doi.org/10.1108/JPIF-05-2014-0034
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited