Proposed Ban on Upward Only Rent Reviews

The UK government has proposed a ban on upward-only rent reviews in new commercial leases as part of the English Devolution and Community Empowerment Bill. Long a fixture in English and Welsh property contracts, upward only rent reviews are criticised for driving up rents and contributing to high street decline. The proposed law would not apply to existing leases but would prohibit new agreements from including upward only rent reviews, requiring landlords to allow rents to fall as well as rise or to fix rents outright.

However, critics warn the ban could reduce investment attractiveness by increasing cashflow volatility and affecting property values, particularly for institutional landlords and pension funds. Others argue more transparency is needed around the government’s research before any legislative changes are implemented.

Please do get in touch with our lease advisory team if you have an upcoming rent review, we would be delighted to help.

 https://publications.parliament.uk/pa/bills/cbill/59-01/0283/240283.pdf