Within the North West and in particular Cheshire the 2 February is a major term date on any old style tenancies, the run up to 2 February 2011 has once again seen a flurry of rent review notices being served on tenants throughout the North West.
Tony Rimmer, Director of Rostons, who deals with a number of significant rent reviews annually both on behalf of Landlords and Tenants and where appointed as Arbitrator, has been somewhat surprised by the level of notices served. In many cases this follows reviews which had a due date of 2 February 2009, many of which have only recently been agreed.
Many of the holdings are dairy and livestock within this region and the increase in commodity costs has increased feed costs, whilst at the same time we have not seen an increase in the cost being paid for what is being produced.
It is likely that the Landlords are merely serving a notice to protect their position, such that if the returns from the livestock sector improve along the lines of the cereal sector, they are in a position to take advantage of it.
Whilst the review will take place in 2012, which was the original timescale for CAP, it is likely now that this rent review may take place before the full extent of the review and new payments basis is known.
If you have received a notice and are wondering what you should do, then please contact Tony Rimmer at Rostons.