The Code of Practice for Commercial Leases in England and Wales is a voluntary agreement between commercial property professional and industry bodies. The Code is supported by the Government, which is monitoring the use and impact of the Code in the market.

The Government is concerned that certain aspects of commercial leases do not give occupiers sufficient flexibility. This has led successive governments to facilitate a voluntary Code of Practice for Commercial Leases in England and Wales. The purpose of the Code is to promote flexibility in lease structures and the Government would like tenants to be offered a range of differentially priced lease options and a single form of commercial tenancy document.

RICS’ position in a sentence

The industry backed commercial lease code is the best approach to take to ensure that both landlords and tenants are treated fairly by commercial leases and the Government should not consider legislation which should only be used as a last resort.

RICS’ recommendation

The new version of the code needs to be disseminated as widely as possible to ensure that all those involved in commercial property, including landlords, tenants and agents, know that it exists.

RICS’ view

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