Member Article

Region Responds to New Protocol

New guidance to regulate problematic landlord and tenant issues regarding dilapidation disputes is already having a positive effect within the region, according to property firm CBRE.

CBRE’s Leeds Building Consultancy team explains that the introduction of the Protocol, released earlier this year by the Civil Procedure Rules Committee, creates a framework to encourage landlords and tenants in dispute to engage at an early stage. The guidance also sets procedures for the exchange of information, in an effort to aid a quick settlement and discourage exaggerated landlord claims.

CBRE states that since the protocol was introduced in January 2012, it has already started to see more structured claims being prepared by landlords and in addition to this, tenants are seeking earlier advice.

Senior Surveyor in CBRE Leeds’ Building Consultancy team, Steve Taylor, said; “Disputes between tenants and the landlord over the condition of a property are common at the end of a lease term. With lease durations getting shorter, as occupiers seek greater flexibility, the number of claims is likely to increase thereby placing a greater emphasis on the need for surveyors to embrace the protocol.

“The new changes mean that there is a real possibility of judicial sanctions being imposed on surveyors and their clients for failure to comply with the procedures set out by the protocols. The RICS Dilapidation Guidance note is currently being redrafted to take stock of the new protocol in its 6thEdition and is expected to be published this month.

“It is our view that tenants should be considering their strategy well in advance of lease expiry in order to be more efficient than they have been in the past. Landlords also need to have a clearer picture of their intentions for the property.”

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