Upward only rent reviews have been banned in Ireland by its Government.
“The practice of including upward only review clauses in business leases is a deeply entrenched one. The time has come to end this practice. I look forward to more equitable business arrangements being put in place in the future which take account of the reality facing many business owners and retailers.” said the Minister for Justice, Equality and Law Reform, Dermot Ahern.
It was promised but was thought to be a sort of manifesto pledge, a bit like Lisbon or no new taxes. The Irish government feared a lack of investment if they couldn't guarantee rent returns. Retailers cheered and developers booed.
Flannel's , a small but high profile chain, have knocked 20% off their rents with a CVA. Continuous above inflation rent rises are unsustainable. Now will the government consider it here or are retailers going to have to continue on with Company Voluntary Arrangements to force landlords into more realistic positions?