Q&As

A landlord and a tenant are in dispute about whether the tenant’s current use of the premises is permitted by the user clause in the lease. The landlord proposes to vary the user clause to reflect the tenant’s current use of the premises but the tenant opposes this because it believes that it is not in breach of the user clause and also because the variation could lead to an increase in rent upon review. Is this a dispute that could be referred to a professional arbitration on court terms expert or arbitrator?

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Produced in partnership with Alex Campbell of Arden Chambers
Published on LexisPSL on 30/01/2018

The following Property Disputes Q&A produced in partnership with Alex Campbell of Arden Chambers provides comprehensive and up to date legal information covering:

  • A landlord and a tenant are in dispute about whether the tenant’s current use of the premises is permitted by the user clause in the lease. The landlord proposes to vary the user clause to reflect the tenant’s current use of the premises but the tenant opposes this because it believes that it is not in breach of the user clause and also because the variation could lead to an increase in rent upon review. Is this a dispute that could be referred to a professional arbitration on court terms expert or arbitrator?
  • What is PACT?
  • What disputes can be referred using PACT?
  • Can PACT be used to resolve a dispute about the use of the premises?

What is PACT?

PACT stands for ‘professional arbitration on court terms’. It is a joint initiative of the Law Society and the Royal Institution of Chartered Surveyors. It provides a procedure which permits parties who wish to introduce a renewal lease under the Landlord and Tenant Act 1954 (LTA 1954) to submit the resolution of disputes concerning that renewal lease to an independent third party. The independent third party can act as an arbitrator or an independent expert. PACT thus enables parties to avoid disputes regarding the terms of a renewal lease from having to go to court. See Practice Note: PACT—Professional Arbitration on Court Terms for more information.

What disputes can be referred using PACT?

Guidance issued by the Royal Institution of Chartered Surveyors (entitled Surveyors and lawyers involved in lease renewals under PACT, 1st edition) states at its section 1.4 that PACT is

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