The End of Upwards-Only Rent Reviews
The end of upwards-only rent reviews in the UK commercial property market became official when the English Devolution and Community Empowerment Act 2026 received Royal Assent on 29 April 2026.
For decades, upwards-only rent reviews have been a standard feature of commercial leases in England and Wales. These clauses ensured that when rent was reviewed, it could increase or stay the same, but it could never drop even if local market values fell. The new legislation changes this framework to protect small businesses and high streets during economic downturns.
What the ban changes
Once the provisions take full effect – anticipated during 2027 or 2028 – variable rent review mechanisms must allow rents to move both up and down.
- Affected mechanisms: Open market reviews, index-linked inflation-based reviews, and turnover-based rents.
- Exempt structures: Fixed or stepped rent increases where the exact future figures are known at the start of the lease.
- Trigger rules: Tenants will gain a statutory right to trigger rent reviews, removing the exclusive right previously held by landlords in many contracts.
Timeline and retrospective rules
The ban is not yet actively enforced, pending secondary regulations.
It is anticipated that, when the ban is brought fully into force, it will apply to all new business leases except those granted pursuant to a contractual arrangement that existed prior to implementation of the ban.
Leases already in existence will remain unaffected, except that any tenancy renewal arrangements or options entered into after 17 March 2027 will be caught by the new restrictions, to prevent landlords from pre-emptively locking in one-way increases.
Impact on landlords and tenants
- Landlords and investors: Cash flow models and asset valuations will need adjustment. Many property owners may look to alternative lease structures, shorter terms, or higher starting rents.
- Occupiers and retailers: High street tenants gain relief from inflated rents during market slumps, encouraging greater flexibility and lower vacancy rates.
