Madam, – The article by Business Editor John McManus on upward-only rent reviews (Business Opinion, April 18th) is very encouraging because it shows that the debate on upward-only rent review clauses in existing leases is moving into the mainstream discussion about how to facilitate economic recovery. Up to now the debate on rent reviews has been dominated by specialists arguing the merits of their respective cases.
The contribution that Mr McManus makes is to refocus the debate away from considerations, however valid or otherwise, that are specific to commercial property investors or to their retail tenants. The wider public interest demands the abolition of upward- only rent review clauses in existing leases because this will help economic recovery. Their current impact is to lock in rents at levels that reflect values at the peak of the property bubble.
There is a consensus that the legacy of the property bubble needs to be unwound to help Ireland regain lost competitiveness and sustain employment.
The abolition of upward-only rent review clauses in existing leases is an essential part of this process of saving jobs and rebalancing the economy. – Yours, etc,