Update on the proposed ban on upwards only rent reviews.
Since our November 2025 article on the proposed ban on upwards only rent reviews, the English Devolution and Community Empowerment Bill has continued its passage through Parliament and has now reached the Report Stage in the House of Lords. A recent amendment tabled by Baroness Taylor of Stevenage has shifted expectations about how the ban may operate in practice and could widen its scope in a way that affects transactions completing now.
The proposed amendment – potential retrospective effect
As at the latest version of the Bill, published on 5 March 2026, the ban on upwards only rent reviews is not retrospective, save for a limited exception relating to certain superior lease clauses. However, the newly proposed amendment would broaden the ban so that, for leases granted on or after 17 March 2026, the following would fall within its scope:
- The starting rent of a new lease granted under a contractual renewal right contained within that lease; and
- Any rent reviews within that renewed lease.
This means that a lease completed on or after 17 March 2026 that contains a contractual right to renew could be caught by the ban, despite the legislation still making its way through Parliament.
The potential impact
Parties to commercial leases should be aware of the potential implications of this change.
The amendment looks back to the date of the original lease that contains the contractual renewal right. If that original lease is dated on or after 17 March 2026, then if the Bill becomes law, the starting rent of any renewed lease and any rent reviews within that lease will be subject to the prohibition on upwards only rent reviews.
If the amendment is enacted as proposed, this brings leases already entered into, and those completing now or currently being negotiated, within the scope of the ban. For transactions still at the negotiation stage, heads of terms should be drafted to reflect this.
Key takeaway
Commercial leases completing on or after 17 March 2026 that include a contractual renewal option may be caught by the proposed prohibition on upwards only rent reviews. Renewal provisions should be reviewed carefully to factor in the potential changes.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
