The British Property Federation (BPF) has published a declaration signed by leading players in the property market to promote flexibility in leases including permitting subletting at market rent.

The 20 signatories, which include British Land, Land Securities, Hammerson , MEPC and the Crown Estate between them control more than £76 billion in value of property.

They have agreed that “effective from 30 April 2005, all new occupational leases that we grant will permit sub-lettings at the market rent at the time for the premises to be sublet.” This is with the exception of certain circumstances for example where the landlord is prevented by a superior lease or where “some value was given” in exchange for agreeing not to sublet at below passing rent.

The BPF decision follows the ODPM-commissioned report from Reading University which highlighted that restrictive subletting provisions in leases was a bigger issue for tenants than upward only rent reviews (UORR)
Click here to read more about Reading University’s report.

Last month the government backed down on its threat to ban UORR.

The full list of landlord signatories:

British Land; Capital & Regional; Crown Estate; Derwent Valley; Dorrington; F&C Property Asset Management; Frogmore; Great Portland Estates; Grosvenor; Hammerson; Land Securities; Legal & General Assurance Society; MEPC; Morley; Prudential Property Investment Managers; Romar Investments; Secondsite Property Holdings; Slough Estates; Taylor Woodrow; Threadneedle.

Also in favour are the following property professional service firms:

AON; CB Richard Ellis; CMS Cameron McKenna; Drivers Jonas; Freshfields; Jones Lang LaSalle; Lovells; Savills.

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