Safe as houses" is an axiom which resonates across
cultures, and has an impact on pension investment. Although SIPPS
can't invest in residential property, UK commercial property is
an important asset class for trustees and advisors to consider.
There are two features of the property industry which are
peculiar to the UK and merit especial mention. First is the
so-called "FRI lease": a full repairing and insuring
lease means that the tenants pay all the cost of maintaining and
repairing the building, in addition to the rents. This is
sometimes called a "triple net" lease. Other
jurisdictions require the landlord to repair structure of the
building using income from rent, or make the seller liable for some
wants of repair event after the sale has completed.
Second is the upwards only rent review, prevalent in the UK
despite its unpopularity with tenants. Typically the rent
payable by the tenant is reviewed to the market level every five
years, ensuring the rent received by the landlord keeps pace with
inflation. The benefit (for building owners) is that leases
tend to be written on terms which mean the rent payable by the
tenant will not fall, even if the market rent has fallen since the
lease was first granted.
The combination of these factors produce a robust return profile
Of course, past performance is no guarantee of future
returns. Lease lengths in the UK have fallen over time; the
rent is payable only as long as the lease lasts. This means
there is less certainty with regards to returns. Property
investment has transaction costs and takes time to transact.
Looking to the future, trends such as co-working space and the
growth of freelancing is likely to reduce the demand for offices
This means that any investment into UK property requires expert
advice. Our commercial property team are used to working for
investors of all sizes, and can recommend other relevant
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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The Technology and Construction Court (TCC) decided that the costs of claims consultants assisting in adjudication enforcement proceedings can be recovered as disbursements, assuming that those consultants acted in the adjudication.
The requirements of a valid payment notice issued under a construction contract were considered in a previous update: "A Payment Notice? Be Clear?" with reference to the case of Surrey and Sussex Healthcare NHS Trust v Logan Construction (South East) Ltd  ("Surrey and Sussex") a decision of the English High Court.
VL's appeal was against a decision by LBC on a review of an earlier refusal to provide VL and her family with housing on the grounds that she was not homeless, or threatened with homelessness, finding she had accommodation available to her in Portugal.
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