Business Premises: Deposits
The question
To ask the Secretary of State for Justice, what assessment her Department has made of the accessibility of legal redress for small businesses in disputes relating to commercial property holding deposits.
Answered by Sarah Sackman
The Ministry of Justice has not conducted a specific assessment of this individual issue.
We are aware that holding deposits are a 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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