Upward-only rent reviews are being banned in new and renewal commercial leases in England and Wales, because the government wants business rents to be able to fall as well as rise. The ban sits in section 100 of the English Devolution and Community Empowerment Act 2026, which became law on 29 April 2026, but it is not in force yet and no start date has been set. Existing leases keep their current terms. The main exception is a renewal lease granted under an option or other renewal arrangement agreed on or after 17 March 2026, which will be caught. Fixed and stepped increases agreed at the start of a lease are not affected. For the commercial landlords, investors and trustees Wishtower works with across Sussex and South London, the job now is to know which leases could be caught and to plan new rent review terms with the ban in mind.
What is an upward-only rent review?
An upward-only rent review is a clause in a commercial lease that lets the rent stay the same or go up at each review date, but never go down. If market rents have fallen by the time a review comes round, the tenant carries on paying the old, higher rent. The new rent is commonly linked to open market rent, an inflation index such as RPI or CPI, or the tenant’s turnover.
For landlords and investors, the clause has given a predictable floor under rental income. For tenants, it has meant that a fall in the local market does not show up in what they pay, which can leave a business paying more than the premises would now let for.
Why are upward-only rent reviews being banned?
The government’s stated aim is to help small businesses and struggling high streets by letting rents move down as well as up when trading is hard. The plan was announced on 10 July 2025 as part of the English Devolution and Community Empowerment Bill. UKHospitality and the Federation of Small Businesses both welcomed it.
Property owners and their advisers have been more cautious. Several law firms have pointed out that the ban is not limited to high street shops. It covers offices, industrial units and other commercial premises too, and many small high street tenants are on short leases with no rent review in them at all.
When does the ban on upward-only rent reviews start?
There is no start date yet. The Act received Royal Assent on 29 April 2026, but the rent review rules only come into force when the government makes commencement regulations. As of October 2026, no date has been announced. Law firms advising on the Act expect the ban to take effect in 2027, and possibly as late as 2028.
Some of the detail may still change before then. The government has said it will consult on caps and collars before the ban starts. A cap sets the most the rent can rise at review, and a collar sets the least it can fall to. The Act also gives the Secretary of State the power to create exceptions by regulations.
Which leases will the ban affect?
The ban applies to business tenancies that are covered, or could be covered, by Part 2 of the Landlord and Tenant Act 1954. That includes leases contracted out of the Act’s security of tenure. Once it is in force, it will apply to new leases granted after the start date, and to leases varied after that date to add rent review terms.
Leases already in place keep their upward-only clauses for the rest of their term. A lease granted after the start date can also fall outside the ban if it is granted under an agreement made before the start date, such as an agreement for lease.
Renewals are the exception that matters most right now. If an option to renew, or another arrangement for a renewal lease, was entered into on or after 17 March 2026, the renewal lease will be caught when it is granted, even if the ban only starts years later. That covers the rent payable on the first day of the renewal lease and every review during its term. Any lease signed since 17 March 2026 with a renewal option in it is already affected.
Which rent reviews are caught, and which are not?
The ban targets reviews where the new rent is not known, and cannot be worked out, at the time the lease is granted. That covers open market reviews, reviews linked to RPI, CPI or another index, and reviews based on turnover. Where one of these reviews would produce a rent higher than the figure the market, index or turnover calculation points to, the upward-only wording will have no effect and the rent will be that figure instead. If the market has fallen, the rent falls with it.
Fixed increases are outside the ban. A lease can still say the rent will rise to a set amount on a set date, because that amount is known from the start. Index-linked reviews are within scope, so a clause that ties the rent to CPI but stops it ever dropping below the passing rent would be caught. The new Schedule 7A also makes void any agreement that requires the tenant to pay the landlord the difference.
What does the ban change for tenants?
Tenants gain some practical rights as well as the protection on rent. Where a lease only allows the landlord to start a rent review, the tenant will be able to start it by giving written notice. If a step is needed for the review to work and the lease only lets the landlord take it, the tenant may take that step and must tell the landlord in writing within seven days.
Tenants who sublet should note one more change. Where an older head lease requires any sublease to include an upward-only rent review, that requirement will stop having effect once the ban is in force.
What should commercial landlords and investors do now?
Nothing changes for existing rent reviews today, but there are sensible steps to take before the ban starts. Law firms advising on the Act suggest the following.
- Check which leases granted since 17 March 2026 contain a renewal option, as those renewals will fall within the ban.
- Look at the rent review terms in any heads of terms being negotiated now, and how the rent would be set if the market falls.
- Consider whether fixed or stepped increases suit a particular letting better than a variable review.
- Review loan and funding agreements that require upward-only reviews as a condition of letting.
- Take legal advice on drafting, because the rules are technical and every lease is different.
For anyone holding several properties, the ban will create a two-tier portfolio. Older leases will keep their upward-only reviews, while newer leases and caught renewals will move with the market. That affects income forecasts and valuations, so it helps to know which leases sit on which side of the line. Rent reviews are one of several lease events worth tracking, alongside expiries and break clauses in commercial leases.
How Wishtower supports commercial landlords
Wishtower manages offices, retail units and industrial premises from offices in Eastbourne, Brighton and Croydon. Our commercial property management covers rent collection and client accounting, tenant liaison, inspections, planned maintenance, and service charge budgeting and collection. We are regulated by the Royal Institution of Chartered Surveyors, with chartered surveyors in the team.
For larger landlords, investors, funds and trustees, our property asset management work includes portfolio reviews that check the leases and raise upcoming lease events early enough for owners to take advice and decide. Trustees may find our guide to what to expect from a commercial property manager useful too. Drafting the lease itself stays with your solicitor.
The ban on upward-only rent reviews is not in force yet, but leases with renewal options agreed since 17 March 2026 are already within its reach. You can follow the Act’s progress on the UK Parliament website. If you own commercial property in Sussex or South London and want to talk through what the change means for your leases, call the Wishtower team on 01323 312121 or email info@wishtower.com.
