Indexed rent review clause based on RPI subject to cap and collar (annual review)

by Practical Law Property

A clause providing for annual changes to the rent payable under a lease. The clause is drafted on the basis that the rent will change based on the Retail Prices Index, although a different index can be specified. It provides for both a maximum and minimum increase at each review (often known as a capped and collared review or a capped and floored review). For an example of a similar clause where the indexed rent review occurs less often than once a year, but the cap and collar increase annually by an agreed amount, see Standard clause, Indexed rent review clause based on RPI subject to cap and collar (non-annual review). The standard clause is drafted to fit into standard document commercial leases offered by Practical Law Property but can also be adapted for use in other leases.