IT IS TIME for the government to re-think its flawed support for the banning of upward-only rent reviews.

That is the view of a leading commercial property expert, Andrew Archibald of Humberts in Southampton, following damning revelations about the accuracy of an interim report into the effectiveness of the Code of Practice for Commercial Leases.

Figures contained in the interim Key Report, prepared by Reading University, tended to indicate that the lease code was not being followed - stating that, in 2002, 67 per cent of leases still contained a five-year rent review while only 23 per cent of leases contained no rent review at all - and potentially adding fuel to the government's argument for them to be outlawed.

Andrew's view is that the Investment Property Databank's admission that the data regarding the incidence and frequency of rent reviews had been incorrectly analysed has reversed that position.

Using its more refined method of analysis, IPD has revealed that in reality some 49 per cent of new leases contained no rent review at all and only 37 per cent contained a review at five years.

Andrew said: "When the voluntary Code of Practice came into being in 2002, the industry argued that the government's focus on upward-only rent reviews was misleading and unhelpful.

"The commercial property industry is driven by market forces like any other arena of business and, I believe, is rightly resistant to the idea of legislation being introduced to attempt to control just one aspect of it.

"Humberts has seen a significant shortening of lease lengths over the last few years together with many more break clauses - a clear sign that the market is answering government concerns without the need for direct legislation."

The voluntary Code of Practice was introduced in 2002 in response to the government's manifesto for business and its commitment to improving flexibility and choice in the commercial property lettings market. It also recently announced that it plans to consult on its options to make the commercial lease market fairer for tenants.

These could include an outright ban on upward-only rent reviews, priced 'menus' of different lease terms, or forcing tenants to take leases of less than five years.