The BRC has stepped up the pressure on Chancellor Gordon Brown to legislate to ban upward-only rent reviews.

As the consultation period on possible legislation came to an end, the BRC and an alliance of small business organisations wrote to Brown, calling for urgent action to put an end to the inflexibility in the property market.

The BRC letter, signed by the Federation of Small Business, the Forum of Private Business, the Small Business Bureau, Business in Sport & Leisure and the Property Managers Association, said: 'As businesses, we support the principle of self-regulation, but are disappointed by the property industry's lack of progress in addressing their leasing practices. It is clear that continuing with a voluntary approach will do nothing to deliver more flexible leases for tenants.'

Speaking at a BRC seminar on leases, director general Kevin Hawkins said: 'The property industry has now had two goes at regulating itself. Both have failed. Gordon Brown is running out of patience and so are most BRC members.'

The Government had asked for the industry's views on six options, ranging from doing nothing to an outright ban on the controversial review clauses. Shopping centre trade body BCSC, which represents landlords and tenants, has also made public its response after a survey of its members.

It said it detected 'considerable apprehension' about legislation and warned that a ban could 'significantly destabilise the retail property investment and development market, which, in turn, could hinder the development and regeneration of our urban centres'.

The BCSC has put forward a compromise proposal under which landlords would be forced to offer a 10-year lease, with a guarantee that the rent would not fall below the initial rent on review, but parties would be free to agree alternative lease lengths or terms if they chose.

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