Comparable rent accusation
Making comparisons between similar properties is the standard means of assessing appropriate levels of rent payable on commercial premises.
In the case of Clear Call Limited v Central London Investments Limited, the practice came under scrutiny by the Court of Appeal as a landlord defeated claims that it had entered into a sham lease at an artificially inflated rent in an attempt to push up its returns on other properties that it owned.
One of the landlord’s tenants had made an unopposed application for a new lease under the Landlord and Tenant Act 1954 but objected when the rent payable was fixed by a judge at £125,700 per annum. The judge had in part based his decision on the rent achieved by the same landlord in respect of another property.
The tenant argued that that transaction was a sham and that the comparison put forward by the landlord was artificial and unreal. It was said that the relevant premises had remained empty and in a dilapidated state since the rent was said to have been agreed and that the tenant was a dormant, non-trading, company.
The landlord denied the accusation that it had engaged in a ruse in an attempt to force up rents in an area in which it had substantial property holdings. The evidence showed that the transaction had taken place, that there had been negotiations prior to the grant of the lease and that rent had been paid.
In dismissing the tenant’s appeal, the Court noted that its arguments had been fully considered, and rejected, by the judge. Fresh evidence of alleged skulduggery that the tenant sought to put forward could either have been presented to the judge or was of no real substance. An appeal by the tenant had also previously been dismissed by the High Court.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Shading for housing, a design guide
A look back at embedding a new culture of shading.
The Architectural Technology Awards
The AT Awards 2025 are open for entries!
ECA Blueprint for Electrification
The 'mosaic of interconnected challenges' and how to deliver the UK’s Transition to Clean Power.
Grenfell Tower Principal Contractor Award notice
Tower repair and maintenance contractor announced as demolition contractor.
Passivhaus social homes benefit from heat pump service
Sixteen new homes designed and built to achieve Passivhaus constructed in Dumfries & Galloway.
CABE Publishes Results of 2025 Building Control Survey
Concern over lack of understanding of how roles have changed since the introduction of the BSA 2022.
British Architectural Sculpture 1851-1951
A rich heritage of decorative and figurative sculpture. Book review.
A programme to tackle the lack of diversity.
Independent Building Control review panel
Five members of the newly established, Grenfell Tower Inquiry recommended, panel appointed.
Welsh Recharging Electrical Skills Charter progresses
ECA progressing on the ‘asks’ of the Recharging Electrical Skills Charter at the Senedd in Wales.
A brief history from 1890s to 2020s.
CIOB and CORBON combine forces
To elevate professional standards in Nigeria’s construction industry.
Amendment to the GB Energy Bill welcomed by ECA
Move prevents nationally-owned energy company from investing in solar panels produced by modern slavery.
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Experimental AI housing target help for councils
Experimental AI could help councils meet housing targets by digitising records.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing tool inc. physical environment, indoor facilities, functionality and accessibility.