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On 29^th April 2026, the English Devolution and Community Empowerment Act 2026 received Royal Assent, confirming that upwards-only rent reviews in commercial leases will be banned.

The ban applies to all business leases whether inside or outside the 1954 Act.

Although the legislation is now in place, the ban has not yet come into force. The Government is yet to confirm when it will start, but it is anticipated that the implementation will be in late 2027 or early 2028.

The ban represents a significant change from the current position in England and Wales, where upward-only rent reviews have long been standard practice in commercial leases, providing landlords and investors greater certainty over future rental income.

The change will not affect existing leases. However, the new rules are expected to apply to lease agreements entered into on or after 17^th March 2026 (the “Retrospective Trigger Date” agreed) where a contractual or statutory right of renewal exists. Once the ban comes into force, any renewal lease could also fall within the new regime.

What this means in practice?

The upward-only mechanics in open market, Retail Price Index / Consumer Price Index and turnover reviews are overruled once the ban is implemented.

The landlord will need to choose between:

• agreeing a fixed rent; or
• a stepped rent; or
• introducing a review clause that allows rent to decrease as well as increase.

In the current tenant-led market, this legislation may not necessarily benefit tenants as intended. It could encourage shorter leases outside the Landlord and Tenant Act, leaving tenants without protection or renewal rights.

Interestingly, the impact could also have a reversed effect to the intended as much of UK commercial property is owned by pension funds and local authorities. The legislation could significantly affect these owners, particularly as the Government promotes investment in infrastructure and regeneration.

If you’re looking for expert advice on how to navigate the upcoming changes, please contact one of our commercial property experts.