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Lawrence Stephens advises Arc’teryx on Manchester store

Posted on: April 25th, 2025 by Natasha Cox

Lawrence Stephens Director Nickhil Mandora and Solicitor Sophie Levitt have advised Arc’teryx on their first UK store outside of London, located at New Cathedral Street, Manchester. The new store is Arc’teryx’s first foray into the UK retail market outside of London and represents a significant vote of confidence for the North West.

Arc’teryx, based in North Vancouver, British Columbia, is a Canadian company specializing in technical outdoor apparel and equipment for mountaineering and alpine sports.

The new store, set to open this summer, will be the brand’s fourth UK location, joining its other retail sites in Covent Garden, Piccadilly, and Battersea Power Station.

Nickhil Mandora has acted on the leases of each of these sites and said “We are delighted to have acted for Arc’teryx on their newest store located on New Cathedral Street, Manchester, which will no doubt have been with met excitement by fashion-conscious Mancunians. Arc’teryx are a brand that are at the top of their game, having managed to effortlessly tap into the zeitgeist, and we look forward to extending our relationship with them.” 

For more information on our services and expertise in the commercial real estate sector, please click here.

Danny Schwarz and Stephen Dodge discuss the imminent closure of Prince Charles Cinema in Estates Gazette

Posted on: March 27th, 2025 by Natasha Cox

Director and Head of Commercial Real Estate Danny Schwarz, and Trainee Solicitor Stephen Dodge examine how the ongoing lease renewal dispute between a tenant – the Prince Charles Cinema – and their landlord reveals real estate concerns for many of London’s independent businesses. 

Danny and Stephen’s article was published in Estates Gazette, 25 March 2025, and can be found here. 

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From packed showings of cult classics like The Room to raucous singalong presentations of The Rocky Horror Picture Show, Londoners are united by weird and wonderful memories from the iconic Prince Charles Cinema in Leicester Square. However, few visitors would have imagined, while passing through the theatre’s red carpeted corridors, that such a long-standing institution does not own its space.

Like many of London’s independent businesses, the Prince Charles Cinema is a tenant, and is currently suffering the nightmare of all tenants – a bitter dispute with its landlord. However, unlike the horror classics that have played across its screens, the plucky protagonist of this story seems unlikely to make it out alive.

The cinema announced earlier this year that its landlord has all but chosen to force the cinema to close its doors.

Lease renewals and break clauses

In what otherwise might be a standard lease renewal at market rents, the landlord has demanded rents the cinema pays are far above market rates. It has also proposed a rolling break right in the lease, which would allow the landlord to terminate the lease on six months’ notice at any time. The belief is that the landlord, owned by real estate development company Criterion Capital, intends to redevelop the property.

It’s not hard to see why

Already a prime London location, the Prince Charles Cinema is an historic building in an area of high footfall. Despite the theatre’s old-world charm, there are likely scores of rival businesses that would happily swoop in on such a desirable plot.

While break clauses in commercial leases are a part of business included to provide a degree of certainty of term to the parties and to minimise the risk of non-payment of rent, they are typically commonplace in commercial leases. A landlord or tenant may have an option to break on the third or fifth anniversary of their agreement, but that option allows the break to occur only on that specific date, with notice. Sometimes, tenants with break clauses are even rewarded for not exercising that clause with a rent-free period after the break date.

The proposed break clause in the Prince Charles Cinema’s new lease would throw certainty to the wind by allowing the landlord to force out the tenant at any time.

The demand for above-market rents adds a further layer of obfuscation to the negotiations.

The landlord’s break which they can exercise at any time is not in itself a reason for the Prince Charles not stay in occupation. The above market rent is more likely to prevent the cinema from renewing its lease. If the landlord wanted the property vacant, it might have simply elected not to discuss renewal. Unless of course the Prince Charles is protected by the security of tenure provisions of the Landlord & Tenant Act 1954.

A look at the lease

A look at the current lease which is available to view at the Land Registry suggests that the Prince Charles could be in a better negotiating position than reported, given that it enjoys security of tenure under the lease. This means the cinema could serve a notice on the landlord requesting a new lease on the same terms as the existing lease save for the rent and the term of the lease which would both need to be in line with the current market. This would mean that for the landlord to oppose the grant of a new lease it would have to object on one of the prescribed grounds, in this case most likely redevelopment.

The difficulty the landlord would face is that at present its plans to redevelop the property are nothing more than rumours and to oppose a new lease the landlord must show genuine intent, through applying for planning permission, for example

A look at the rent review provisions in the current lease of the cinema hints at another reason the landlord may be wary of statutory renewal proceedings. The lease granted in 1963 contains provisions for rent review every 21 years and capped at £14,000 per annum. This may explain how the cinema has survived this long in Leicester Square. Capped rent reviews are less common in modern leases. Leases also tend to be shorter, and rent reviews usually occur every 5 years, not every 21.

Ultimately, this is all speculation. It is impossible to know the exact status of the negotiations. Unless the Prince Charles has grounds to oppose the proposed higher rents and rolling landlord’s break, there is likely little the cinema can do in this situation.

Despite a petition circulating gathering more than 15,000 signatures at the time of writing, for independent businesses in the entertainment and hospitality sectors who are facing these ‘David vs Goliath’ battles against their larger landlords, there is simply not enough bargaining power.

Silver screens and silver linings

This position is made worse for businesses with unique or novel requirements for their property, such as cinemas.

While the Prince Charles is a unique business with its niche and devout following, cinemas are becoming increasingly less desirable as tenants, due to their relatively low turnover post-pandemic. In areas like Leicester Square, there is an added incentive for landlords to attract businesses with high turnover and higher spend per customer, so that they can charge turnover rents.

There is one silver lining to the storm cloud gathering above the Prince Charles Cinema: the landlord has not yet applied for planning permission to redevelop. A search of Westminster Council’s Planning Portal shows just one entry relating to the property – an approved application to display an unlit sign reading ‘to let’.

So, for now at least, the show goes on.

If you would like to know more about our Commercial Real Estate services, or to get advice about commercial leases, please click here

Lawrence Stephens Directors named in Spears’ Property Indices 2025

Posted on: March 20th, 2025 by Natasha Cox

Whether handling commercial properties, mixed-use developments or the most exclusive super-prime residences, the very best property lawyers are trusted by HNW clients to provide expert guidance throughout the often lengthy, intricate, and high-stakes process of buying, building, and selling real estate.

We are delighted to announce that Stephen Messias, Director in our Commercial Real Estate team, and Goli-Michelle Banan, Head of Residential Real Estate, have been named top property lawyers in Spears’ Property Indices 2025.

“The advisers selected for the Spear’s Property Lawyers Index 2025 demonstrate not only an extraordinary depth of knowledge but also an ability to navigate the evolving landscape of property law with skill and precision.”

To read the full list, click here

 

Lawrence Stephens advises Tri Capital on two commercial property sales

Posted on: February 19th, 2025 by Natasha Cox

Lawrence Stephens have recently advised long-standing client Tri Capital Properties in relation to two commercial property sales which have completed within a week of each other.

The first comprised a partially let property in Thornton Heath where contracts were exchanged within ten working days of receipt of agreed terms. The second transaction was a complicated sub-lease of part of premises in West London. 

The transactions were led by Commercial Real Estate Director Craig Mullen who commented: “It was a pleasure to assist Tri Capital with these disposals.  The team at Tri Capital are always proactive and driven to achieve agreed deadlines.  A special mention must also go to the selling agents at Henshall & Partners, Acorn Commercial and Estate Office Property Consultants who were on hand at every step of the way.  I look forward to working with them all again very soon.”

For further information on our Commercial Real Estate services, click here

Government Abolishes Two-Year Rule in Leasehold Reform Act 2024

Posted on: February 6th, 2025 by Hugh Dineen-Lees

Effective from 31st January 2025, the Government has enacted a major change under the Leasehold and Freehold Reform Act 2024 (LAFRA), which abolishes the two-year ownership rule. This is the first part of the LAFRA to be implemented.

Following this change, Leaseholders will no longer need to wait two years to commence enfranchisement or lease extension processes.

This will have a particular impact on lease extensions or enfranchisement where the flat is subject to an impending sale. Given that new owners will no longer have to wait 2 years to extend their lease or commence enfranchisement proceedings, this will avoid the need for the existing owner to begin this process prior to the sale, if it is required, making the sale process more efficient.

Housing Minister Matthew Pennycook has emphasised this reform marks the initial step towards a comprehensive overhaul of the leasehold system, indicating that efforts will continue to implement the measures outlined in the Leasehold and Freehold Reform Act.

The implementation of further reforms set out in the LAFRA are planned for Spring.

The updated legislation can be seen here – Leasehold and Freehold Reform Act 2024

Practice guide 27 has now also been updated to reflect this:  Practice guide 27: the leasehold reform legislation – GOV.UK

Lawrence Stephens appoints Memery Crystal Real Estate team

Posted on: January 31st, 2025 by Natasha Cox

Farringdon based full-service law firm Lawrence Stephens is pleased to announce the appointment of Directors John Aynsley, Chris Cagney, Matthew Hind, Nickhil Mandora and Sam Silverman to their Commercial Real Estate department, who all join from the highly regarded Real Estate group at Memery Crystal.

John Aynsley was previously Head of Real Estate at Memery Crystal, specialising in the acquisition, disposal, development, regeneration, financing, and management of high-value assets in commercial real estate. He acts for clients ranging from international real estate funds and listed house builders to private investors.

He is joined by fellow Directors:

  • Chris Cagney, who has extensive experience in a range of commercial real estate matters as well as advising on development projects and property finance transactions.
  • Matthew Hind, who specialises in general commercial real estate with a mixture of investment, development, finance, occupier, and management work. He also has considerable experience dealing with distressed real estate on behalf of banks and insolvency practitioners.
  • Nickhil Mandora, who acts for a wide variety of clients ranging from retail landlords and tenants to institutional lenders and property developers. 
  • Sam Silverman, who has acted for major international and domestic clients including developers, funds, corporate occupiers and supermarkets within the office, industrial and retail sectors.

Commenting on his appointment, Director John Aynsley stated: “We are very pleased to join Lawrence Stephens at this important moment for the firm. Their extraordinary growth over recent years is evidence of their ambition and can-do attitude, which we share and clients clearly love. We look forward to building on what are already strong foundations and working closely alongside the rest of the Lawrence Stephens team.”

Managing Director Steven Bernstein commented: “We are delighted to welcome John and his team to Lawrence Stephens. Their arrival coincides with a period of exciting growth for the firm and will provide both bench strength to our existing team as well as extending the range of expertise and experience we can now offer to both existing clients and new prospects.”

Danny Schwarz and Sophie Levitt discuss how the rise in NICs will affect property investors and landlords, in FT Adviser

Posted on: January 13th, 2025 by Natasha Cox

Head of Commercial Real Estate Danny Schwarz and Solicitor Sophie Levitt discuss how the increased rate of employer Class 1 national insurance contribution rates will impact property investors and landlords.

Danny and Sophie’s article was published in FT Adviser, 13 January 2025.

NIC Rate Hike: UK businesses brace for landlord and tenant turmoil

Rachel Reeves presented her Autumn Budget 2024 to Parliament on 30 October, to a mixed reception. One of the most controversial changes announced was that the government will be increasing the rate of employer Class 1 National Insurance Contribution (NIC) rates from 13.8% to 15%. The current rate of 13.8% is payable on the amount that an employee’s earnings exceed the secondary threshold of £9,000 per year/£175 per week. However, the increased rate will be 15% and the secondary threshold will be reduced to £96 pounds per week/£5,000 per year. These changes to employers NIC rates will come into effect on 5 April 2025, however are already posing concerns for the UK’s retail and hospitality sector.

While the increase in employer NICs aims to raise revenue for vital services, such as the NHS, and may increase funding for contributory benefits, such as the State Pension, the measure could have a profound effect on retail and hospitality businesses due to the increasing costs such businesses face and may result in shop closures, and others feeling the strain.

As a result of these changes, it is vital that property investors and landlords consider how these measures will impact their buying strategies, and tenants may well consider renegotiating their lease agreements to offset the higher operational costs which may otherwise impact their businesses.

For landlords and tenants alike, these reforms pose a number of challenges.

Operational costs

The prospect of raising employer National Insurance costs could prove to be a major setback for businesses. As a result of these reforms, businesses could be forced to face higher operational costs due to increased NICs, which would reduce their profit margins and place a greater strain on their livelihoods. For instance, it has been estimated that Tesco alone could face a £1 billion pound increase in its National Insurance bill over the course of this parliament.

Smaller and medium-sized enterprises (SMEs) are expected to be the most severely impacted as a result of these changes. SMEs often operate on tighter profit margins and many such businesses will therefore be forced to decide whether to fund the higher NICs by operating on reduced profits, cutting back on expenses or increasing their prices.

As a result, a phased introduction of the NIC threshold may be a better way for businesses to absorb the costs without passing them on to consumers in the form of higher prices.

Price increases

If a retail business opted to increase their prices of goods and services to offset the higher costs, consumer spending and demand could also be impacted as a result of the NIC hikes. Higher prices could exacerbate the cost-of-living crisis, making everyday items more expensive for shoppers.

It therefore comes as no surprise that more than 70 of Britain’s largest retailers have signed an open letter to warn the Chancellor that the NIC hike may lead to price increases and job losses throughout the high street. Some of the signatories included Aldi, Lidl, Boots, Ocado, Morrisons, Greggs and JD Sports – all of whom share concerns about the viability of such proposals.

Lease agreements

Business tenants who face the higher operational costs from the increased NIC rates may also seek to renegotiate their lease terms as a result of these changes. This could potentially lead to more flexible or reduced rent agreements since landlords are likely to be reluctant to lose longstanding tenants and will want to avoid being left with vacant properties and no rental income.

There are several ways for landlords to offer incentives and concessions to tenants to help them through this new financial burden. Temporary rent reductions could help tenants manage their cash flow during challenging times. Landlords could otherwise offer reduced rent for early renewal, waive certain fees or provide additional services such as maintenance.

Consequently, the terms of the lease could be made more manageable for tenants.

Rent arrears

Moreover, under the strain of these measures, certain landlords may also be less willing to renegotiate their lease terms and tenants may struggle to absorb the additional costs. Tenants, particularly in the retail and hospitality sectors, may be unable to generate enough income to meet their rent obligations. This could lead to higher rates of tenant defaults, leaving landlords with no choice but to forfeit their leases and to re-market the property. If landlords were left with no rental income, this would place a further strain on their finances.

There would also be additional expenses including administrative costs and legal fees when dealing with tenant defaults.

The fact that the British Retail Consortium is seeking a meeting with the Chancellor to discuss their concerns about the increased NIC rates, is proof that the scale of the new costs has the potential to cause severe financial hardship across different businesses.

Property transactions

The hike in NIC rates could affect the overall cost structure of property transactions and lead to higher property prices for buyers and sellers. Buyers may face higher purchase prices, which can affect affordability and demand in the property market. This could create a more challenging environment for property transactions, with reduced demand leading to slower market activity. 

If property investors and developers must operate on reduced profit margins, therefore, certain projects may seem less attractive or viable. This could lead to a decrease in the number of new development projects.

Higher NIC rates would also likely lead to increased labour costs for property investors and developers. This would inevitably make construction and development projects more expensive, potentially leading to higher prices for new properties.

Additionally, higher costs may be reflected by the fees of the professionals who are involved in the development projects, such as surveyors, architects and contractors.

Reduced investment

With increased costs due to higher NIC rates, landlords and tenants may also reduce investments in property improvements, expansions, or new technology, potentially slowing growth and innovation in the sector. The NIC rate hike has the potential to exacerbate economic uncertainty and make buyers, sellers and investors more cautious.

It is highly likely, therefore, that the changes will affect the overall health of the property market and have a significant knock on effect on the UK’s retail and hospitality sector.

Potential for legal disputes

Unsurprisingly, therefore, changes implemented as a result of the Budget could lead to legal disputes over lease agreements, employment terms and other obligations as parties adjust to the new financial landscape. There is also potential for businesses to struggle to comply with these new NIC regulations, which could lead to disputes with HMRC over unpaid contributions or penalties for non-compliance.

It is vital that businesses stay updated with the latest NIC regulations to ensure that they remain complaint. Payroll systems will need to be reviewed and updated to reflect the changes in the NIC rates. Compliance will reduce the risk of disputes arising from regulatory issues and will ensure a smoother operation of business.

Navigating the increased secondary NIC liability

As a result of Reeves’ proposals, the UK government estimates that 940,000 employers will face an increased secondary NIC liability. It is therefore inevitable that businesses across the UK and especially SMEs are feeling the pressure of this financial burden. It is essential for businesses to consider a variety of cost saving measures and to save price increases and redundancies as a last resort.

Landlords must also take a balanced approach and agree to renegotiate their lease agreements with loyal tenants if it is reasonable to do so. Landlords may be able to offer more flexible payment plans or allow temporary reductions with the agreement to recoup the difference at a future date.

However, maintaining open and transparent communication is fundamental.

Landlords and tenants should discuss the financial challengers together to find mutually beneficial solutions. By adopting this strategy, landlords can help their tenants through financial hardship whilst maintaining occupancy and fostering positive landlord-tenant relationships.

Looking ahead

Unsurprisingly, the proposed NIC hikes has provided cause for concern for many UK businesses in the retail and hospitality industry. From the impact on operational costs to the risk of litigation, there are a plethora of factors that must be considered if businesses are to weather the storm and remain both profitable and compliant.

In order to navigate these choppy waters, it is therefore vital that businesses seek tailored legal advice concerning their employment obligations and property agreements to ensure that they are braced for the upcoming changes and able to tackle the issues head on.

For more information on our Commercial Real Estate services, please click here. For our services in the Retail and Hospitality sector, click here

 

Lawrence Stephens advises The Cotswold Company on the expansion of its omni-channel presence

Posted on: December 19th, 2024 by Natasha Cox

Lawrence Stephens has advised The Cotswold Company, the well-known premium furniture and homeware brand, on commercial contracts to support the expansion of its omni-channel presence through third party retailers. The company has launched its products on NEXT.co.uk and with John Lewis & Partners online, alongside the introduction of a dedicated brand space within the iconic Peter Jones store in Chelsea.

Founded in 1996, The Cotswold Company offers a range of thoughtfully designed furniture, with a focus on quality materials and craftsmanship. These contracts mark the brand’s first entry onto third-party retail platforms, complementing its fast-growing e-commerce site and 10 UK showrooms.

In a recent article in Retail Week, Cotswold Company chief executive Ralph Tucker said: “With our new partnerships with John Lewis Partnership and Next – both of which have gone live in time for Christmas – we’re making tangible steps towards delivering growth and becoming one of the UK’s leading premium homeware brands.”

Rachael Pinchbeck, Head of Commercial Finance, The Costwold Company said “Bradley and Craig were a pleasure to work with. Their contractual expertise and retail experience resulted in the smooth and timely completion of contracts ahead of our successful launches. We look forward to working with Bradley and the Lawrence Stephens team on future projects.”

Director Bradley Lee advised on the commercial contracts, while real estate advice was provided by Director Craig Mullen.

Lawrence Stephens prepares source of funds reports for property bought at auction using crypto assets

Posted on: December 16th, 2024 by Natasha Cox

Despite cyptocurrencies becoming more mainstream, recent commentary suggests that investors are still finding it hard to utilise these to purchase property in the UK. A recent Financial Times article highlighted the low appetite for sellers to accept cryptocurrencies. As a result, if purchasers want to use their crypto investments towards a property purchase, this usually involves converting the cryptocurrency into traditional or fiat currency – legal tender established by government regulation.

Much of the reluctance to accept funds derived from  the disposal of cryptocurrency comes from its well-publicised association with criminal activity, in particular money laundering. Law firms have obligations imposed by the SRA in relation to checking sources of wealth and sources of funds for anti-money laundering (AML) purposes. Solicitors have a legal duty to ensure that any, and all, funds used within a property transaction have come from a legitimate source. They must therefore establish the original source of the funds, not the mere availability of funds in a bank account.

Establishing the legitimacy of funds generated through cryptoasset activity requires the instruction of an expert who is able to carry out a full report on the crypto proceeds being used. The content of this report includes documenting and reporting of the cryptoasset activity, including the initial ‘on-ramp’ into crypto (i.e. the exchange of traditional fiat money into cryptoassets), the purchase of cryptoassets, and the subsequent cryptoasset activity to the ultimate liquidation and ‘off-ramp’ from cryptoassets back into traditional fiat money which was then being used to make the purchase. This report can then form the basis on which the conveyancer can make a judgment as to whether it is safe to proceed with the proposed transaction.

There are currently few law firms with the required expertise to produce such reports. Buyers wishing to use crypto assets for property purchases should be especially aware of the need to establish legal source of funds when buying property at auction.

The Lawrence Stephens’ team was recently called in at short notice to assist a client who had purchased a property for £210,000 at auction. He had intended to fund the purchase by utilising proceeds mainly generated through investing and trading on cryptoassets. Our client had instructed solicitors in relation to the purchase. However, just two days before the notice to complete was due to expire, the client was informed that they did not have the necessary expertise and could not provide the required report on the source of funds coming by way of crypto. At this late stage, he was at risk of losing his 10% deposit.

The Lawrence Stephens’ team – comprised of Asim Arshad and Gunduz Misiri – were able to take on the instructions and were able to extend the notice to complete by three days. This gave the team enough time to complete a full crypto source of funds report to verify the funds coming by way of crypto and intended to be utilised for the purchase. We were pleased to effect the completion of the purchase within the agreed upon extended time.

 

Danny Schwarz and Stephen Dodge discuss the redevelopment of Oxford Street in Property Week

Posted on: October 2nd, 2024 by Hugh Dineen-Lees

Head of Commercial Real Estate Danny Schwarz and Trainee Solicitor Stephen Dodge explore the proposed pedestrianisation of Oxford Street, and discuss its potential impact on London’s retail and hospitality sectors, in Property Week.

Danny and Stephen’s article was published in Property Week, 2 October 2024, and can be found here.

Facelift will revive Oxford Street

Some shops may lose out, but pedestrianisation plan will broaden iconic retail destination’s tenant mix.

Last month, London mayor Sadiq Khan announced radical plans to pedestrianise London’s iconic Oxford Street. This proposal, Khan’s second for the famous high street, appears likely to succeed thanks to a Labour-led Westminster council, and for Oxford Street the timing could not be better; it is ripe for revitalisation.

The pandemic resulted in a slew of notable Oxford Street shop closures. With tourism statistics showing footfall is still yet to fully recover, it is clear that the retail district is struggling. This is hardly surprising; Oxford Street is often not London’s most desirable destination. Its pavements are cramped, the thoroughfare is plagued by antisocial drivers and the shopfronts are infested with much-derided American candy shops.

So, how will pedestrianisation breathe new life into Oxford Street? Case studies on the pedestrianisation of locations such as nearby Carnaby Street or Copenhagen’s Strøget Street are telling. Despite objections from business owners, particularly restaurateurs, these streets were closed to traffic and experienced significant increases in footfall. Local businesses benefited from an increase in customers.

However, there are risks involved in this latest proposal for Oxford Street. Prior to the announcement of plans for pedestrianisation, the post-pandemic rebound was in full swing on the street. Property vacancies are down 40% from 2023, with leasing activity breaking records in that year and remaining high now. With rents rising for commercial tenants on and around Oxford Street, mere speculation on the pedestrianisation proposal is likely to see rents continue to spike. The value of freehold titles could similarly creep upwards.

Tenants subject to upcoming rent review may see rates rise far beyond their short-run means and there is a risk that landlords may see an opportunity to trade up tenants, exercising break clauses to hike rents. Property lawyers will be busy with a flurry of breaks, renewals and disputes.

However, tenants on fixed rents may be buoyed by increased footfall and have a highly profitable few years. Tenants with high-volume businesses also stand to win regardless of their rents, as greater footfall will correlate directly to sales.

Winners and losers
Unfortunately, not everyone will be a winner as a result of Khan’s proposal. Low-volume luxury shops are often more reliant on patronage from customers who arrive by car and may prefer to move elsewhere, as their clients will not wish to brave crowds. At the other end of the spectrum, accessibility will be hampered by pedestrianisation, further inconveniencing those reliant on cabs or buses.

If these long-standing and successful luxury businesses fail, landlords will be seriously affected. Those who relied on the status quo, and did not obtain adequate guarantees or security at their last lease renewal, may also find themselves as low-ranking creditors in protracted insolvencies.

What is clear is that disruption creates opportunity and Oxford Street has already begun to change – no longer are all leases on the high street exclusively for retail use. Parts of John Lewis and similar buildings are being converted to office space, bringing a new type of consumer to the area, while parts of Debenhams are being converted for leisure use, alongside the openings of new entertainment venues. Spaces left behind in the ongoing – and welcome – retreat of American candy shops are similarly ripe for conversion into cafés, which could apply for pavement seating.

A new type of tenant, with a new clientele and different priorities, is coming to Oxford Street. Landlords may find it difficult to adjust to this new normal, but those who can be flexible and see the potential in their new tenants stand to gain from the new face of London’s iconic retail district.

If you would like further information regarding your obligations as tenants/landlords of retail spaces, please contact a member of our Commercial Real Estate team.

Danny Schwarz and Sophie Levitt discuss the proposed outdoor smoking ban in The Times

Posted on: September 26th, 2024 by Hugh Dineen-Lees

Director and Head of Commercial Real Estate, Danny Schwarz, and Solicitor Sophie Levitt discuss the potential impact of the proposed outdoor smoking ban on the hospitality sector, as well as the legal implications for landlords and tenants, in The Times.

Danny and Sophie’s article was published in The Times, 26 September 2024.

Ministers are considering imposing stricter rules on outdoor smoking to reduce the number of preventable deaths connected to tobacco use. There are no final plans, but smoking could be banned in pub gardens, outdoor restaurants and sports grounds.

The proposed ban appears as a puritanical tendency to reach for authoritarian solutions to complex public health problems. When politicians choose to cement their intolerance of the behaviour of others through legislation, it restricts individual freedom, further eroding people’s right to choose what they can do and where they can do it.

Arguably, such misuse of state control is antidemocratic: an extreme anti-smoking agenda which is not supported by scientific evidence that smoking in the open air creates any quantifiable threat to public health.

And now the British Beer and Pub Association (BBPA) is pleading with the government to abandon plans for greater smoking restrictions in pubs since it would affect their viability as businesses. But not all pubs would be impacted equally by such a ban. For instance, gastropubs are less worried about a slowdown following the ban, given the focus of their business on serving full meals, typically indoors.

While there is some disagreement within the hospitality industry regarding the precise impact of such a ban, there is a broad consensus that beefed up rules need to be clearly worded and ‘outdoor area’ must be precisely defined to minimise uncertainty.

A pub garden smoking ban could affect both landlords and tenants. If the ban has a heavy impact on the viability of tenants’ businesses, they may be unable to generate enough income to pay their rent. Landlords may have to forfeit leases, leaving them with vacant possession and the need to remarket the property.

Tenants would be obliged to comply with the smoking ban, which could be outlined expressly in leases or implied under a compliance with laws clause. If the tenant used the property in a manner which was not permitted, the landlord could forfeit the lease and end the unlawful use. Alternatively, the landlord could claim damages if they suffered any loss because of the tenant’s breach.

While the government’s proposals have received support from public health experts, many landlords, operators and customers have voiced concern that the rules would be unenforceable.

Bar staff would have to police this ban in addition to their existing obligations. Smokers would crowd on pavements outside of pubs, which would cause disturbance and nuisance to neighbours, or breach licence conditions, particularly in residential areas. Smoking could also be prohibited in parks and therefore create confusion in public spaces as it would be difficult to police.

If you are needing advice on matters relating to the hospitality sector or the legal obligations of landlords and tenants in commercial real estate, please contact a member of our Commercial Real Estate team.

Abtin Yeganeh comments on the Renters’ Rights Bill in Property Week

Posted on: September 18th, 2024 by Hugh Dineen-Lees

Head of Real Estate Disputes, Abtin Yeganeh, comments on the Renters’ Rights Bill and how the proposed legislation must carefully balance the rights of tenants and security for landlords.

Abtin’s comments were published in Property Week, 11 September 2024, and can be found here.

“While the proposed Renters’ Rights Bill will be welcomed by the majority of UK tenants, providing them stronger legal protections and implementing a ban on ‘no-fault evictions’, the proposed reforms must strike a balance between the rights of tenants and security for landlords.

“No-fault evictions create a degree of uncertainty for many, with landlords able to evict their tenants without cause at the end of the fixed term of the tenancy. The new bill proposes to abolish this practice, and provide tenants with greater peace of mind.

“No-fault evictions have previously provided landlords with security, as they know they can obtain possession at the end of the tenancy without cause, and the banning of no-fault evictions may therefore provide them with cause for concern. However, importantly, the bill will reform the grounds of possession, with new grounds being introduced to address repeated serious arrears, and situations where possession is required to allow the landlord to sell a property or for the landlord and/or family members to occupy the property.”

If you would like further information on the implications of the Renters’ Rights Bill or have any questions regarding landlord/tenant matters, please contact Abtin Yeganeh