Upward-only rent review ban could create a two-tier market – claim
Summary
The article reports concerns that the government’s ban on upwards-only rent reviews in new commercial leases could create a split market, with older leases and newer lease structures valued differently over time. It notes that the legislation has received Royal Assent, but implementation timing and detailed guidance remain outstanding.
Why it matters
Although the measure applies to commercial leases, surveyors involved in valuation and lease advisory work may need to consider how differing rent review structures affect asset value, occupier value and comparables. The lack of implementation detail also creates short-term uncertainty for market participants assessing lease terms.
Key points
- Ban on upwards-only rent reviews applies to new commercial leases under the English Devolution and Community Empowerment Act 2026.
- Existing leases with upwards-only rent review clauses are expected to remain unchanged.
- Alternative lease structures may include fixed annual increases or index-linked reviews.
- Law firm warns the reforms could create a two-tier market depending on lease date and wider market conditions.
- Government has not yet confirmed the commencement date or published detailed guidance.
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