PARLIAMENTARY WRITTEN QUESTION
Network Rail: Assets (20 June 2018)

To ask the Secretary of State for Transport, pursuant to the Answer of 19 June 2018 to Question 152257 on Network Rail: Property, what protections will be afforded to Network Rail tenants in relation to future rent increases after the sale of Network Rail’s arches estate.

Asked by:
Helen Hayes (Labour)

In November 2017, Network Rail announced the sale of its commercial estate business in England and Wales. It is a non-core property asset, which produces commercial income for Network Rail and is not essential for running the railway.

Network Rail manages its commercial estate as a commercial business. Its rents are set with reference to local property market conditions. Rent reviews happen on a periodic basis as outlined in tenants’ leases and in accordance with normal commercial property market practice.

Once the business is sold, all current leases will transfer to the new buyer and all lease arrangements will be unchanged. The tenants’ notice period will also continue as per their original lease agreement. Tenants will continue to be subject to rent reviews as they are currently and as outlined above.

Answered by:
Lord Johnson of Marylebone (Conservative)
29 June 2018