UK OCCUPIER SATISFACTION INDEX 2009 PROPERTY INDUSTRY ALLIANCE
AND CORENET GLOBAL UK
Home : Qualitative findings : Summary by question

How satisfied are you that the property owners that you currently deal with are seeking to comply with the Code of Practice for Commercial Leases?

Some occupiers believe that the property industry is moving towards greater compliance with the Code, with the larger property owners perceived to be more likely to comply than the smaller property owners. Others, however, feel that the property industry pays lip service to the Code.

Some property owners are taking positive steps towards complying with the Code 'Landlords are taking the Code on board. A couple of times at the landlord's instigation they've done things without being asked. Before we'd have to drive them.'

'Most landlords are advised by quality surveyors, and the industry is losing a few of the cowboy landlords, so this is improving.'
But many report reluctance to comply 'Compliance seems to have died a death and lost momentum. It was the top story for a while but it's all gone very quiet now.'

'They don't comply, I don't even know if there is any awareness. When they send out the heads of terms they are nothing like what the Code guidelines say they should be. We point this out and property owners just shrug their shoulders.'

'I haven't yet come across a property owner who willingly offers to show us that he complies with the Code.'

'By and large, I feel they are not responding to the Code, although major landlords may say they are. A key aspect is upward-only rent reviews. I don't know anyone whose rent has been reduced.'
Regional variance in compliance is reported In the London area and the major cities there are signs that a large proportion of landlords are signing up.

The Code doesn't have too much application in Scotland.

Landlords in Ireland barely comply.
Occupiers feel that property suppliers are paying lip service only 'They might have signed up to it but they are not paying it any attention.'

'Some are better than others. Everyone says they abide by it but I think they are paying lip service.'
The larger property suppliers are perceived to be more likely to comply 'They do comply. In London the large landlords have to follow the Code, they have more to lose if they don't.'

'The large property owners do comply but the small independent companies, who form the bulk of the landlords in this country, do not comply and this is a problem. I feel that the Code should become statutory.'

'The big boys do and the small boys don't. For example, Land Securities are leaders but small firms of solicitors don't.'
Some want the Code made statutory 'Very few landlords comply. The problem with all codes is that there is no legal frame behind them. They promote best practice but if a landlord chooses not to adopt the Code you can't force it to.'
Some report that compliance is occupier-driven 'I make property owners aware of the Code.'

'It's been driven by the residents' association who are very proactive, particularly following dodgy financial issues with the last managing agent.'
Occupiers perceive that improvements in compliance are market led 'Things have improved because of market conditions not because of any genuine wish on the landlords' part.'

'I think they are more willing to comply as they want to keep tenants.'