What goes up could definitely now come down
Update on the ban on upwards only rent reviews, including when it is likely to take effect and who may already be affected.
The ban on upwards only rent reviews becomes law
The English Devolution and Community Empowerment Act 2026 (the Act) received Royal Assent on 29 April 2026 thereby banning upwards only rent reviews in commercial leases. Fortunately, the commercial rental sector has been given a little breathing space (subject to our comments below) as the timing of commencement of the ban has not yet been specified. The commencement date, which will be set by secondary legislation, is not expected before 2027 and the Government’s own impact assessment suggests 2028 as a possibility.
The Act will make an upwards only rent review clause unenforceable where the reviewed rent is neither fixed, nor entirely ascertainable at the start of the lease term. The legislation therefore catches open market, index‑linked and turnover rents and allowing reviewed rents to move both up and down.
Immediate implications for renewal leases
Whilst the Act in its original form was not going to have retrospective effect, following an amendment proposed in the House of Lords, a renewal lease entered into pursuant to an option dated on or after 17 March 2026 will be within the scope of the ban. This means that both the rent payable on day one of the renewal lease and any rent reviews during its term could be affected. Therefore, leases currently being negotiated which contain a contractual renewal option, are already caught.
For more detail, please see our November 2025 and March 2026 articles.
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The information in this article is necessarily of a general nature. The law stated is correct at the date (stated above) this article was first posted to our website.
Specific advice should be sought for specific situations. If you have any queries or need any legal advice, please feel free to contact Wrigleys Solicitors.
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