Talks to thrash out lease code on shaky foundationCOMMERCIAL PROPERTY: impasse over tenant, landlord rightsThe solicitor leading a government working group on commercial leasehold has warned that moves to leave its reform to the property sector are in danger of backfiring.The working group comprising representatives from business, and landlord and tenant groups was formed with a view to changing leasehold voluntarily without imposing legislation.

But in a letter to housing minister Nick Raynsford, Mishcon de Reya partner and working group chairman Phillip Freedman said the talks have reached an impasse.Three flexible lease models have been put forward in a bid to reach a middle ground, Mr Freedman explained.

But these have all met with opposition because they pit flexibility for tenants against financial compensation for landlords.

Other concerns were that they would lead to less choice and cause havoc with property values.Mr Freedman told the minister that it has not yet been possible to reach agreement over the particular lease terms to be promoted by the code in order to achieve the flexibility that you want to see in the market.

Attempts to produce even an interim report on the issue have fallen flat, Mr Freedman said.

A spokesperson for the Department of the Environment, Transport and the Regions said the minister was disappointed that the working group had not reached a consensus voluntarily.

He is adamant that the status quo is not satisfactory and will want to discuss future options with his government colleagues, he added.

Paula Rohan