Introduction

In the 1950s and 1960s there was normally no review of the rent during the period of a lease. This method of receiving a return on capital invested was excellent whilst there was no regular reduction in the value of the pound. As soon as inflation became persistent, businessmen realised that a fixed return on their investment meant that in real terms they were receiving an ever-smaller return. In order to meet this problem, a procedure for the review of the rent payable was inserted in the lease. Although a procedure for rent reviews is not a new phenomenon, it generally comes into force only in times of growth in the rate of inflation.