High Court gives hope for rent cuts

Excellent overview Robin.The RICS Valuation Information Paper No 2(VIP2) does contain a crucial feature that in the main has,in times of recession, been studiously ignored by Pubco valuers,and certainly a vast majority of BDM/BRMs.VIP2 requires that "future trading potential" should be taken into consideration.The current market is either generally flat or falling slightly.Generally total sales mirror that market.Overhead cost however,is rising inexorably,at about 8% or so per anum.Virtually all Pubco rent calculations totally ignore this reality.

Enter stage left,the Brooker judgement.The judge listed six specific negative points that he felt would be considered by the reasonably minded future Lessee.These points influenced his view on the quantum of the divisible balance.The ruling is now hugely persuasive and thankfully supports that which I have been banging on about for ages and which was contained in VIP2 all along.The rules have not changed,but at last the proper system for rent calculation has High Court backing.The Rental Market,in my view,will now be changed to reflect the correct balance.Rents will be reduced as a result.For enabling this to happen,I suppose a big vote of thanks should go to whoever forced the case upwards from the County Court into the High Court.Buy that man a beer !

High Court gives hope for rent cuts

The next ones ,being Lease renewals,are all set for the County Court system,which was where Brooker was bound originally.Bet you a quid to a pinch of whatsits that they never get there and all "settle out".Problem being that the expense will have to be incurred to get the cases that far in the first place.Some things never change.In my world its called cheque book negotiation.Legal but thoroughly unfair as you know full well which party has the financial muscle.

High Court gives hope for rent cuts

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High Court gives hope for rent cuts

Why stop at a case, I think there will be quite a lot to celebrate.