At the end of last year a consultation was launched by a working party of various Real Estate industry bodies exploring whether a cross industry consensus could be achieved as to whether and, if so, how CRC costs should be apportioned between landlords and tenants in new leases.
This was followed up by a subsequent workshop in February this year, exploring in some detail the results of the consultation.
The results of the consultation and of a subsequent workshop conducted in February has been published. For a copy of the consultation, please click here.
The highlights are:
- There is no consensus about the next steps which should be taken and therefore at the moment a single industry standard CRC lease clause is regarded as unachievable.
- However, the working party believe there is still merit in highlighting particular approaches that landlords can adopt and a second edition of "The Carbon Reduction Commitment: A Guide for Landlords and Tenants" is to be issued in July 2010. This will look at some of the alternative ways of CRC costs being charged to tenants and the pros and cons of each method and will take into account a number of the proposals which some landlords have put forward over the past few months.
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
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The original publication date for this article was 09/07/2010.