Business Premises: Small Businesses
The question
To ask the Secretary of State for Housing, Communities and Local Government, what assessment his Department has made of the adequacy of protections for small businesses that pay holding deposits during negotiations for commercial premises.
Answered by Nesil Caliskan
We know that holding deposits are common practice in negotiations for commercial premises. These are a private matter between landlords and businesses. However, we would always advise that parties seek independent advice before making any deposit.
The Government has asked the Law Commission to review the commercial leasing system to ensure that it is fit for modern practices. The review is underway and will make recommendations for how the legislation governing the system can be improved.
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