In CoStar, Commercial Real Estate Partner, Sophie Henwood explains how the English Devolution and Community Empowerment Act has introduced a ban on upwards-only rent reviews in new commercial leases, requiring rents to be able to adjust both upwards and downwards.
While this represents a notable shift towards balancing landlord and tenant interests, its practical impact may be limited.
Leasing trends have already evolved with shorter lease terms, often five years, becoming increasingly common. This means many modern leases do not incorporate rent reviews at all. Where rent reviews are still used, landlords are likely to adapt by implementing alternative structures provided these comply with the new legislation.
The ban is not expected to come into force before 2027, giving the market time to adjust to the changing regulatory landscape.
The full article was first published by CoStar in May 2026.
Partners, David Rawlence and Sophie Henwood, and Senior Associate, Kate Symons explore the key changes introduced by the English Devolution and Community Empowerment Act 2026, including when the ban will take effect, which leases it will apply to, how rent review provisions may need to be structured going forward, and the wider implications for lease negotiations and market practice.
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