RPI-linked rent
Lease payments that increase in line with the Retail Prices Index — a very common mechanism in UK property leases.
Definition
RPI-linked rent is a form of index-linked rent where lease payments are periodically adjusted in line with changes in the Retail Prices Index. RPI is widely used in UK commercial property leases, particularly older leases and institutional-grade assets. Under IFRS 16 and amended FRS 102, the lease liability must be remeasured when the RPI adjustment takes effect to reflect the revised payment schedule.
Why it matters
RPI has historically run higher than CPI and can produce significant increases in lease payments on long property leases. Remeasurement at the review date must be recognised promptly in the financial statements.
In AuditLease
AuditLease tracks escalation type and supports future lease event alerts for upcoming rent review dates.
Related terms
Put this into practice with AuditLease
AuditLease handles IFRS 16 and FRS 102 lease calculations, statutory note generation, journal entries, and audit evidence, so your team spends less time on spreadsheets and more time on judgements.
This definition is for general information only and is not accounting or legal advice. Definitions are based on IFRS 16, FRS 102, and associated guidance published by the IFRS Foundation and the Financial Reporting Council. Users should refer to the applicable accounting standards and their professional advisers for judgement-specific matters.