When the market soars the landlords will benefit, but not to the extent possible under the current system. Conversely, when the market rent falls, there can be a reduction in charges, but the rent is never permitted to fall below its initial level. While used occasionally in UK leases, these systems are still relatively uncommon. Yet they could hold the key to the government's hopes for nurturing small businesses, by introducing welcome flexibility in lease structuring. By differentiating between the needs of small business tenants and the bigger players, a ban could be targeted on upwards only reviews, without incurring the resentment of landlords.
Radical change appears inevitable in the UK sector.
Rather than perceiving change as a threat, all concerned would be better grasping the opportunity of working together and building firm foundations for the future.