The End of Upwards-Only Rent Reviews? Key Impacts for Landlords and Tenants
Overview
On 29th April 2026, the English Devolution and Community Empowerment Act 2026 received Royal Assent. One of its most significant commercial property measures is a proposed ban on upwards-only rent reviews (UORR) in business tenancy leases in England and Wales. We are increasingly seeing landlords and tenants raise UORR early in discussions and consider alternative rent review structures now, particularly on new lettings and lease renewals where parties want to “future-proof” documents ahead of commencement. In a recent negotiation for example, a tenant’s surveyor expressly referenced to the anticipated abolition of upwards-only reviews when rejecting a proposed re-gear and instead pushed to conclude the rent review on revised terms, illustrating how the direction of travel is already shaping strategy and deal dynamics, even before the formal start date.
The stated aim of the ban is to support high street tenants and encourage economic growth by preventing rent review structures that lock tenants into rent levels that may no longer reflect market reality. Once in force, the legislation will prevent landlords from including upwards-only rent review provisions in situations where the reviewed rent cannot be ascertained at the date the lease is granted. The prohibition will apply to business tenancies whether or not the lease is contracted out of the Landlord and Tenant Act 1954. Renewal leases for existing tenancies entered into after the ban comes into force may also fall within the regime, particularly where there was no agreement for lease prior to commencement.
What does this mean in practice?
A shift away from upwards-only rent reviews is likely to affect how leases are priced and structured. Landlords may seek to protect returns by negotiating higher initial rents, shorter lease terms, or more robust provisions around break rights, alienation, and security packages. We also expect to see greater use of alternative rent review mechanisms, including Index-linked rent reviews, which adjust rent in line with inflation measures such as CPI or RPI or stepped rents, where any increases are agreed at the outset.
How we can help
Our active lease advisory team carry out hundreds of rent reviews and are on hand to discuss any queries regarding this new legislation or anything else lease related. Please contact [email protected]
