On 4 April 2011 amendments to the Retail Shop
Leases Act came into force.
The amendments render ratchet clauses in retail shop leases void
and apply to all retail shop leases entered into after 4 April
2011.
The amendment inserts a new section, section 36A in the Retail
Shop Leases Act. Within that section a ratchet clause is defined
as:
"ratchet rent" provision means any provision of a
retail shop lease to the extent that it—
- prevents, or enables the lessor or another person to prevent,
the rent decreasing under a rent review; or
- limits or specifies, or allows the limitation or specification
of, the amount by which the rent may decrease under a rent review;
or
- prevents, or allows the avoidance of, the rent review by the
lessor or another person for a purpose mentioned in paragraph (a)
or (b).
